Cost Adjustment Overview

For gas and electric services, rates are difficult to structure because of volatile fuel prices. Most organizations use fixed rate components for their rate structure, with a separate component that charges for the volatility. Cost adjustments are defined outside of rates to make it easy to change the cost adjustments as needed without having to change the rates each time. Cost adjustments can then be attached to consumption-based rate components on rates with a service class of Electric or Gas. They accumulate into the same charge category as the consumption they accompany.

By default the cost adjustment is rolled into the consumption line item on the bill. A system setting exists on the Bills tab of UM settings that can be used to present cost adjustments separately on the bill. ClosedShow me

  • If the Show Cost Adjustment check box is selected, the cost adjustment information will be presented as a separate line item on the standard bill. Multiple cost adjustments may be used for the same service class. Customers using a custom bill may elect to present this information differently.
  • Click Save to retain any changes to these settings.

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    See also

    Cost Adjustment List

    Cost Adjustment

    Multiple Cost Adjustments Presentation