Hedge Cover - Rate Schedule and Rate Components
Create a Rate Schedule for your rate.
For the rate components, let's assume the charges are as follows:
• A bill line with the charges for the hedge cover at the strike price
• A bill line showing the measured usage over the hedge cover at the market price
• A bill line showing the measured usage under the hedge cover at the market price
Note that this rate may contain other charges that are not illustrated here.
The above line items require algorithms to perform the interval pricing calculations. The product is shipped with the RCIPRS algorithm type, which applies an interval pricing curve to an interval profile curve assuming that the interval size is the same.
Seq #
RC Type
Description
Profile Relationship Type
Algorithm
Bill Factor
10
Interval Pricing
Hedge cover at the strike price
HEDGE
Algorithm to apply prices to an interval profile curve
Strike Price
20
Interval Pricing
Measured usage over hedge at market price
OVRUNDHDG
Algorithm that applies prices to positive values in an interval profile curve (data does not need to be continuous)
Market Price
30
Interval Pricing
Measured usage under hedge at market price
OVRUNDHDG
Algorithm that applies prices to negative values in an interval profile curve (data does not need to be continuous)
Market Price