When Your Company Is A Service Provider

Besides setting up service providers for other companies that provide services to your customer, you may have to set up a service provider for your own company. You have to do this when:

• Your organization can supply one of the services. Refer to the illustration in Service Providers Are Linked To Service Agreements. If you are LG&E and you supply energy in addition to distribution, you would need to set up a service provider for your own organization. Why? Because whenever you have a subcategory of service (e.g., energy supply), you must indicate the service provider who provides this service; even when it's you.
• You decide to break up a service into subcategories (and have a separate service agreement for each category). For example, a water company may choose to break up service charges into water, wastewater and storm water (they may do this because there are different rates for each category of service). The following is an example of the segregated charges associated with this water company's service charges.

This water company system may benefit by creating a single service (for water) and indicating there are subcategories of service (for wastewater and storm water). Whenever you have a subcategory of service, you must indicate the service provider who provides this service. And, in this example, the water company would be the sole service provider for each subcategory of service.