Index Price Rate

Also known as variable rate. Variable products, that change frequently, use index rate.

The Index Priced rate is base rate plus adder, where the base rate is supplied by data stored in tables instead of in the rate details. These tables are intended to be updated on a regular basis either by user interface, file upload, or automated data retrieval mechanism.

The adder is designed to encompass margin and optionally other factor that would be added to an index value to come up with a total, variable rate to charge Customer.

Indexed Rates are calculated at Invoice generation and stored in the InvoiceDetail table.

In the Customer bill calculation, the energy charge = (Rate + Adder) * Consumption 3-2

Rate Index Range Maintenance

“Rate Index Range Maintenance” user interface is used by Client to enter the rate amount for the “custom” indices. For details refer Rate Index Range Maintenance page.

When entering values for an index, ensure that From and To dates must be same for consecutive entries.

For some clients the rate amount can be optionally prorated when it changes during a meter read date range. Similarly for other clients, the rate amount cannot be optionally prorated but the rate amount to use for the entire consumption period is determined by a lookup using the End Date of the Consumption instead.

For Example,

Consumption Period: 1/1/2008 – 1/31/2008
Rate Index Type: Texas Electric Index
Range Index Range Values:

Index Price Rate Example

Date From	Date To	Rate Amount
12/7/2007	1/15/2008	.756
1/15/2008	1/31/2008	.715
1/31/2008	2/17/2008	.723

The Rate Amount is .723. For CIS to keep the system flexible enough to handle proration (and another feature discussed in Block Price Rate), consecutive values have be same for Date To and Date From. To ensure the correct amount is returned during the lookup, one day is subtracted from the Date To when compared to the End Date of the Consumption.

Index Pricing Calculations

Product Type	Rate Types & Calc Method	Product Elements
Market Clearing Price for Energy (MCPE) - is a rate for the particular 15 minute ERCOT Settlement Interval for the congestion management zone in which the meter is located.	MCPE Consumption Interval Rate - `Energy Charge = summation of [interval meter reads * ERCOT Interval MCPE price]` Index Maintenance: ERCOT Interval MCPE Pricing loaded daily to CIS via web service. Note: Interval meter read can be generated from a single monthly meter read using published profiles in a process called loosely “intervalization” of a monthly read.	Charge Category Charge Description Rate Type Unit of measure Secondary Rate Customer Type Minimum Amount Maximum Amount Fixed Adder Fixed Cap Rate Effective Date Expiration Date
External Index Pricing – CIS currently provides a mechanism to price electricity based on an external index.	Flat Pricing Structure (Heat Rate) – this Rate type is based on the Heat Rate Index which is a fixed conversion rate from fuel to electricity (BTUs per kWh). The contracted rate may be fixed or may vary each month. To capture the benefit of the actual Gas Price for a given month, consumption is calendered. If a meter read crosses two months, the system sums the total of each month for IDR meters and prorate each month’s period for non-IDR meters. Once the monthly period consumption is calculated, each period must be multiplied by the NYMEX index for that matching month. Index Maintenance: Heat Rate Index maintained via UI by Client. Note: This rate type uses the same “1000 Series” rate calculation type as the LBMP variable pricing but utilizes a manually keyed index data source	Charge Category Charge Description Rate Type Unit of measure Secondary Rate Customer Type Fixed Adder Fixed Cap Rate Effective Date Expiration Date
Locational Based Marginal Pricing - (LBMP) - a variable pricing mechanism that prices energy congestion and marginal losses at every generator bus in the New York service area (also known as ESS).	Index Price Calculation – calculation based on daily rates published by LDC. Part of the “1000” Rate Type series that can be blended and prorated with the other Rate Types in this series. Index Maintenance: LBMP pricing provided via data file (daily pricing) extracted from NY LDCs’ web sites. (currently loaded via file and FTP upload) Note: This rate type uses the same “1000 Series” rate calculation type as the External Index (Heat Rate) variable pricing but utilizes bulk data source and file up load process.	Charge Category Charge Description Unit of measure Blended Percentage Time of Use Rate Type Index Type Margin Effective Date Expiration Date

Product Type

Rate Types & Calc Method

Product Elements

Market Clearing Price for Energy (MCPE) - is a rate for the particular 15 minute ERCOT Settlement Interval for the congestion management zone in which the meter is located.

MCPE Consumption Interval Rate - Energy Charge = summation of [interval meter reads * ERCOT Interval MCPE price]

Index Maintenance: ERCOT Interval MCPE Pricing loaded daily to CIS via web service.

Note: Interval meter read can be generated from a single monthly meter read using published profiles in a process called loosely “intervalization” of a monthly read.

Charge Category
Charge Description
Rate Type
Unit of measure
Secondary Rate
Customer Type
Minimum Amount
Maximum Amount
Fixed Adder
Fixed Cap Rate
Effective Date
Expiration Date

External Index Pricing – CIS currently provides a mechanism to price electricity based on an external index.

Flat Pricing Structure (Heat Rate) – this Rate type is based on the Heat Rate Index which is a fixed conversion rate from fuel to electricity (BTUs per kWh). The contracted rate may be fixed or may vary each month. To capture the benefit of the actual Gas Price for a given month, consumption is calendered. If a meter read crosses two months, the system sums the total of each month for IDR meters and prorate each month’s period for non-IDR meters. Once the monthly period consumption is calculated, each period must be multiplied by the NYMEX index for that matching month.

Index Maintenance: Heat Rate Index maintained via UI by Client.

Note: This rate type uses the same “1000 Series” rate calculation type as the LBMP variable pricing but utilizes a manually keyed index data source

Charge Category
Charge Description
Rate Type
Unit of measure
Secondary Rate
Customer Type
Fixed Adder
Fixed Cap Rate
Effective Date
Expiration Date

Locational Based Marginal Pricing - (LBMP) - a variable pricing mechanism that prices energy congestion and marginal losses at every generator bus in the New York service area (also known as ESS).

Index Price Calculation – calculation based on daily rates published by LDC. Part of the “1000” Rate Type series that can be blended and prorated with the other Rate Types in this series.

Index Maintenance: LBMP pricing provided via data file (daily pricing) extracted from NY LDCs’ web sites. (currently loaded via file and FTP upload)

Note: This rate type uses the same “1000 Series” rate calculation type as the External Index (Heat Rate) variable pricing but utilizes bulk data source and file up load process.

Charge Category
Charge Description
Unit of measure
Blended Percentage
Time of Use
Rate Type
Index Type
Margin
Effective Date
Expiration Date