Supported Rate Components

Oracle Utilities supports a variety of rate components, which can be mixed and matched to create custom “rate plans” for each utility. The sections below describe the supported rate components. A member of the Delivery Team will work with you to determine which rate components are applicable for your utility’s implementation. This process will include defining the unique identifiers used for each individual component for use throughout subsequent file specifications. This refers to the rate_component column used throughout this document.

Base Rate Components

All rates have a base rate component that is used during non-event days to apply cost calculations. The following table describes the available base rate components:

Name	Description
Flat Rate	The flat rate is the simplest of the rate plans supported by the Rate Engine. There is a single price ($/kWh) for all electricity (kWh) used by a customer, no matter what time of day or day of week that electricity is used. A customer's total cost for a given bill period is simply the total number of kWh used multiplied by the price. The price of electricity may vary by season. For example, electricity is typically more expensive in the summer than in the winter.
Time of Use (TOU)	The time-of-use rate adds the dimension of time, with the price of electricity varying depending on the time of day and the day of week. Holidays are taken into account as well. There are typically no more than three types of time periods: on-peak, off-peak, and part-peak. Each time period has a different price associated with it so that electricity consumed during each time period is charged at a different price. Again, electricity prices may vary by season. For example, there may be one set of on-peak, off-peak, and part-peak prices in the summer and a different set in the winter. All undefined time periods are considered off-peak, so you do not need to specifically define off-peak periods.
Tiered/Inclining Block Rate (IBR)	The IBR rate (also known as a tiered rate) consists of prices that increase with the amount of energy that a customer uses during a bill period. The first block of energy used by a customer during a bill period is charged at a certain price, the next block of energy used is charged a slightly higher price, and so on. There are typically no more than five blocks (tiers), each with its own corresponding price. Prices typically increase from one tier to the next, though this is not always the case. Again, electricity prices may vary by season. For example, there may be one set of tiered prices in the summer and a different set in the winter.
Hourly Pricing	The hourly pricing rate consists of prices that can vary from hour to hour and from day to day. Each day, the utility "announces" the 24 hourly prices for the next day. The electricity used by a customer in each hour of the day is charged at the corresponding price for that hour. Each day's hourly prices can be unique from those of other days. There are some trends to the prices, such as higher prices during the summer and during certain hours of the day, e.g. early afternoon.

Event-Driven Pricing Components

Additional components may be added to a rate plan to alter the pricing calculation during peak event days. The most common of these components are the Critical Peak Pricing (CPP)/Peak Day Pricing (PDP) and Peak Time Rebate (PTR) pricing components described below.

Name	Description
CPP/ PDP	The critical peak pricing structure is typically added to another base plan (flat, TOU, hourly, or tiered). On top of or instead of the a base plan, the CPP rate charges a critical peak price during critical peak periods, which are defined as a specific period of time (for example, 1 p.m. to 5 p.m.) on critical peak days. The point of peak pricing is to motivate people to use less during critical peak periods, when the price of electricity is exceedingly high. Utilities typically call about a dozen critical peak days per year (usually during the summer) and announce them the day before the critical peak day. Any electricity used during a critical peak period will be charged at the base price plus the critical peak price, or the critical peak price only. The critical peak price is typically significantly higher than the base price. The critical peak price is typically constant for all hours and seasons, and it does not change throughout a year.
PTR	The peak time rebate rate is another structure that is typically added to another base plan (flat, TOU, hourly, or tiered). Rather than charging the customer an extra critical peak price during critical peak periods, the PTR rate provides rebates for customers who use less than usual during critical peak periods. The utility performs analysis on the customer's recent past usage and issues rebates for critical peak hours during which the customer used less electricity than their measured "baseline." The PTR and CPP rates both aim to reduce electricity consumption during critical peak periods. The difference is that CPP "punishes" customers for electricity used during critical peak periods while PTR rewards customers for reduced usage during critical peak periods.

Name

Description

CPP/ PDP

The critical peak pricing structure is typically added to another base plan (flat, TOU, hourly, or tiered). On top of or instead of the a base plan, the CPP rate charges a critical peak price during critical peak periods, which are defined as a specific period of time (for example, 1 p.m. to 5 p.m.) on critical peak days.

The point of peak pricing is to motivate people to use less during critical peak periods, when the price of electricity is exceedingly high.

Utilities typically call about a dozen critical peak days per year (usually during the summer) and announce them the day before the critical peak day. Any electricity used during a critical peak period will be charged at the base price plus the critical peak price, or the critical peak price only. The critical peak price is typically significantly higher than the base price. The critical peak price is typically constant for all hours and seasons, and it does not change throughout a year.

PTR

The peak time rebate rate is another structure that is typically added to another base plan (flat, TOU, hourly, or tiered). Rather than charging the customer an extra critical peak price during critical peak periods, the PTR rate provides rebates for customers who use less than usual during critical peak periods.

The utility performs analysis on the customer's recent past usage and issues rebates for critical peak hours during which the customer used less electricity than their measured "baseline." The PTR and CPP rates both aim to reduce electricity consumption during critical peak periods. The difference is that CPP "punishes" customers for electricity used during critical peak periods while PTR rewards customers for reduced usage during critical peak periods.

Supported Rate Charges

This section describes miscellaneous additional per-bill charges that the Rate Engine can support.

Per-Bill Charges

In addition to generic components, rates may also have additional charge components associated with specific bills. The following table defines the charge components supported by the Rate Engine:

Name	Description
Minimum Charge	A minimum amount that may be charged to a customer for a particular bill regardless of usage. The minimum charge replaces the usage charge if the minimum charge is greater than or equal to the usage charge amount.
Customer Charge	A flat charge associate with on the customer’s bill regardless of the usage amount. This may be a single flat charge, or a charge per day.
Demand Charge	A charge associated with the maximum demand for a particular time period. There may be one total demand charge, or a charge associated with different TOU periods (peak, part peak, off peak).
Voltage Discount	A per bill charge associated with the voltage class associated with a particular service point.

Taxes and Riders

The Rate Engine does not support rate taxes or other fees that are defined outside of the rate tariff. The Rate Engine does not support rate riders.