Net Energy Metering Billing Examples
- The customer is billed quarterly using the following tariff:
- Customer charge of $3/day (billed on master service agreement)
- $0.10 per kWh (billed on sub service agreement and trued up after 12 month period)
- The GL Accounting distribution codes used in the following tables, such as A/R-NEM and NEM-Liability, are for example only. Your implementation will specify its own distribution codes.
- A True Up Task Type that references the base product NEM business objects with the following configuration:
- Minimum Days In True Up Period: 365
-
Sync Current Adjustment Type: NEM SYNC
This is the adjustment type used to synchronize (make equal) the sub service agreement’s current amount with the payoff amount at true up time.
-
Transfer Adjustment Type: NEM XFER
This is the adjustment type used to transfer debt from the sub service agreement to the master service agreement at true up time.
-
Write Down Adjustment Type: NEM WDWN
This is the adjustment type used to write down any remaining amount on the sub service agreement after we attempt to transfer debt to the master service agreement at true up time.
Example 1: Customer Consumes More Than They Generate
The following table outlines the customer’s master service agreement financial transactions in 2010. Adjustments created in the true up period are in bold. In this example the customer’s net energy results in an outstanding balance of $330 which is transferred from the sub service agreement to the master service agreement, leaving the sub service agreement for that true up period with a zero balance.
|
Event |
GL Accounting |
Effect On Payoff Amount |
Effect On Current Amount |
Payoff Balance |
Current Balance |
|---|---|---|---|---|---|
|
Bill Segment (1/1–3/31) (90 days * $3/day = $270) |
A/R-NEM 270 NEM-Liability <270> |
270 |
270 |
270 |
270 |
|
Payment |
Cash 270 NEM-A/R <270> |
-270 |
-270 |
0 |
0 |
|
Bill Segment (4/1–6/30) (91 days * $3/day = $273) |
A/R-NEM 273 NEM-Liability <273> |
273 |
273 |
273 |
273 |
|
Bill Segment (7/1–9/30) (92 days * $3/day = $276) |
A/R-NEM 276 NEM-Liability <276> |
276 |
276 |
549 |
549 |
|
Payment |
Cash 549 A/R-NEM <549> |
-549 |
-549 |
0 |
0 |
|
Bill Segment (10/1–12/31) (92 days * $3/day = $276) |
A/R-NEM 276 NEM-Liability <276> |
276 |
276 |
276 |
276 |
|
NEM XFER true up adjustment (transfer from sub service agreement) |
A/R-NEM 330 XFER <330> |
330 |
330 |
606 |
606 |
-
First, the current balance to the payoff balance is set using the sync adjustment type (NEM SYNC) on the service task type.
-
Second, any debt from the sub is transferred to the master service agreement using sync adjustment type on the service task type (NEM XFER).
|
Event |
GL Accounting |
Effect On Payoff Amount |
Effect On Current Amount |
Payoff Balance |
Current Balance |
|---|---|---|---|---|---|
|
Bill Segment (1/1–3/31) (1200kWh * $0.10 = $120) |
A/R-NEM 120 NEM-Liability <120> |
120 |
0 |
120 |
0 |
|
Bill Segment (4/1–6/30) (500kWh * $0.10 = $50) |
A/R-NEM 50 NEM-Liability <50> |
50 |
0 |
170 |
0 |
|
Bill Segment (7/1–9/30) (600kWh * $0.10 = $60) |
A/R-NEM 60 NEM-Liability <60> |
60 |
0 |
230 |
0 |
|
Bill Segment (10/1–12/31) (1000kWh * $0.10 = $100) |
A/R-NEM 100 NEM-Liability <100> |
100 |
0 |
330 |
0 |
|
NEM SYNC adjustment (sync current to payoff) |
n/a |
0 |
330 |
330 |
330 |
|
NEM XFER adjustment (transfer to master service agreement) |
XFER 330 A/R-NEM <330> |
-330 |
-330 |
0 |
0 |
Example 2: Customer Generates More Than They Consume
The following table outlines the customer’s master service agreement financial transactions (bill and payment segments are exactly the same as in example 1 above). In this example the customer’s net energy results in a credit balance on the NEM sub service agreement which is written off, leaving the sub service agreement for that true up period with a zero balance (credits are not transferred to the master service agreement).
|
Event |
GL Accounting |
Effect On Payoff Amount |
Effect On Current Amount |
Payoff Balance |
Current Balance |
|---|---|---|---|---|---|
|
Bill Segment (1/1–3/31) (90 days * $3/day = $270) |
A/R-NEM 270 NEM-Liability <270> |
270 |
270 |
270 |
270 |
|
Payment |
Cash 270 A/R-NEM <270> |
-270 |
-270 |
0 |
0 |
|
Bill Segment (4/1–6/30) (91 days * $3/day = $273) |
A/R-NEM 273 NEM-Liability <273> |
273 |
273 |
273 |
273 |
|
Bill Segment (7/1–9/30) (92 days * $3/day = $276) |
A/R-NEM 276 NEM-Liability <276> |
276 |
276 |
549 |
549 |
|
Payment |
Cash 549 A/R-NEM <549> |
-549 |
-549 |
0 |
0 |
|
Bill Segment (10/1–12/31) (92 days * $3/day = $276) |
A/R-NEM 276 NEM-Liability <276> |
276 |
276 |
276 |
276 |
-
First, the current balance is set to the payoff balance using the sync adjustment type (NEM SYNC) on the service task type.
-
Because a credit remains on the sub service agreement, this amount will be written off using the write down adjustment type on the service task type (NEM WDWN).
|
Event |
GL Accounting |
Effect On Payoff Amount |
Effect On Current Amount |
Payoff Balance |
Current Balance |
|---|---|---|---|---|---|
|
Bill Segment (1/1–3/31) (80kWh * $0.10 = $8) |
A/R-NEM 8 NEM-Liability <8> |
8 |
0 |
8 |
0 |
|
Bill Segment (4/1–6/30) (-120kWh * $0.10 = $-12) |
A/R-NEM <12> NEM-Liability 12 |
-12 |
0 |
-4 |
0 |
|
Bill Segment (7/1–9/30) (-80kWh * $0.10 = $-8) |
A/R-NEM <8> NEM-Liability 8 |
-8 |
0 |
-12 |
0 |
|
Bill Segment (10/1–12/31) (100kWh * $0.10 = $10) |
A/R-NEM 10 NEM-Liability <10> |
10 |
0 |
-2 |
0 |
|
NEM SYNC true up adjustment (sync current to payoff) |
n/a |
0 |
-2 |
-2 |
-2 |
|
NEM WDWN true up adjustment (write down credit) |
NEM A/R 2 E - W/O <2> |
2 |
2 |
0 |
0 |
For more information about current and payoff amounts, refer to Billing - Current Balance versus Payoff Balance.