Designing Bill Factors for Credit Allocation

The capital credit allocation process uses an allocation factor in its calculation. A typical capital credit membership may define multiple subcategories, meaning that allocation amounts are calculated each year for the multiple subcategories. The calculation is the same for each subcategory, but the allocation factor differs.

The process has been designed to calculate the allocation for a single subcategory. If your organization requires allocations calculated for multiple subcategories, the process must be run for each subcategory. The allocation process receives a bill factor as an input parameter. As a result, a different bill factor should be set up to define the allocation factor for each subcategory.

For each subcategory, the allocation factor may differ further for the type of customer. For example, the allocation for a commercial customer may differ from the allocation factor for a residential customer. The allocation background process expects the bill factor for each subcategory to define a characteristic type of revenue class. The process determines each service agreement's revenue class by looking at the value defined on its SA type.

Following is an example of bill factors set up for a capital credit membership with two subcategories: transportation and generation.