Charge type: Minimum

The minimum bill charge represents the smallest amount you can bill.

To calculate a minimum bill charge, Rate Modeler compares the following values:

  • The conditional minimum value

  • The total bill before taxes

  • The sum of the selected charges

The largest of these values becomes the minimum bill value amount. Rate Modeler looks at the requirement for a minimum bill and creates an "adder" to bring the bill up to that amount if necessary. The adder is the minimum bill charge.

For example, if the total bill before taxes is lower than the minimum bill value amount, Rate Modeler sets the minimum bill charge to the amount needed to raise the total bill up to the minimum bill amount.

Take a rate with three charges: Charge type: Fixed, Charge type: Energy and Charge type: Demand. The bill for a customer says fixed is $10, energy is $15, and demand is $20. The rate also has a minimum bill value equal to $50. The resulting customer bill is $50, and the minimum bill charge (the adder) is $5 ($50 - 45 = $5).

Rate Modeler looks at the charges contained in this rate (for example, fixed, energy and demand). If you add fixed to the table, Rate Modeler compares the original bill of $45 to the minimum value of $50 to the fixed charge of $10.

Minimum charges are unique and cannot be shared across rate schedules.

Configuring a Minimum Charge

  1. Go to Rate Modeler > Create or Edit > Rate.

  2. Select the Charges tab.

  3. Right-click in the tree pane and select Add Charge.

  4. Select Minimum from the dropdown menu.

  5. Enter a Name and Description for the new charge and click OK.

  6. Select the Class or classes where to assign this charge.

  7. Enter the Charge Amount Effective Date.

  8. Click OK.

  9. In the Enter Value dialog, enter the Minimum Charge amount. (Decimals are acceptable, but do not use dollar signs.)

  10. Select the Report Type for this charge.

    • Reportable. Charge results display in reports.

    • Not Reportable. Charge results do not display in reports.

  11. In the Apply Charge menu, select the term this charge applies to (for example, By Billing Cycle, By Day, By 30 Days, By 31 Days).

  12. (Optional) In the Minimum Amount Calculated from Rate menu, select a rate on which to base the minimum amount.

  13. Click Add to select billing attributes to include with this charge, using the Using the search utility.

  14. Click Save on the toolbar.

  15. (Optional) Right-click items in the tree to add more attributes at that level, or to modify or delete existing attributes.