UOM versus Variance Parameter versus SQI

Almost all rates contain prices in respect of some number of something. This something could be anything from a therm of gas to a kilowatt-hour of electricity. We use three distinct codes to identify the "thing" being priced in a rate. These codes are UOM (unit of measure), Variance Parameter, and SQI (service quantity identifier). These codes must be set up before you can create a rate schedule.

You don't have to use all three codes when you specify a price in a rate. Rather, you use the codes that are needed to clearly identify the thing being priced. We'll use a few examples to clarify this concept.

Let's consider a rate that simply has a price per therm. For this rate, you'd only use a UOM code to identify the thing being priced (and this code should be something simple like THRM).

Next, let's consider a rate that has a different price for kilowatts consumed during peak hours as compared to those used during off-peak hours. You would use a combination of UOM and Variance Parameter to define the thing being priced. In this example, we'd recommend using a single UOM for kilowatt-hours (labeled KWH) and two Variance Parameter - one for the peak period (labeled PEAK) and the other for the off-peak period (labeled OFFPEAK).

And finally, let's consider a rate that has a charge for "annual highest KW (demand) during peak hours". This is a very complicated thing to price. You have several options in respect of the combination of UOM, Variance Parameter, SQI to use to express this unit.