Guide to Flexible Pricing Rate Pilot Participation

Flexible Pricing Rate pilot participation guide

Flexible Pricing Rate Shadow Billing Flexible Pricing Rate Shadow Billing Customers are billed on their current rate known as their Otherwise Applicable Tariff(OAT). In parallel customer will also be shadow billed monthly by an SCE approved vendor. This shadow bill will simulate how a customer will be charged and credited on the Flexible Pricing Rate pilot. It will compare subscription usage vs dynamic usage to derive charges and credits. * * Subscription Usage Shadow billing will be establishing subscription usage based on the customers historical usage from the previous year and dividing by the number of peak hours in the current billing period The same concept will be used to establish a Weekend Subscription kWh. For the purposes of this example, we ll continue with just the Weekday subscription kWh. * Usage and Pricing values are purely demonstrative and not actual billing values 2

Flexible Pricing Rate Shadow Billing Flexible Pricing Rate Shadow Billing Dynamic Usage Shadow billing will also capture Metered usage based on the customers metered usage value from the current billing period. At the interval level it will take the difference of the subscription usage and the metered usage to establish a Dynamic usage value. Flexible Pricing Shadow billing will use a Subscription rate and a Dynamic rate to simulate a customer's charges and credits. Subscription rate will be determined based on the OAT pricing for the current month, and a Dynamic rate will be derived from day ahead market pricing. This will help guide customers on when to shift load. Day ahead pricing can be found here (include link) 3

Flexible Pricing Rate Shadow Billing Flexible Pricing Rate Shadow Billing Applying pricing to usage Shadow billing will assess charges at the interval level to both the Subscription usage and the Dynamic usage. During intervals where the customers dynamic usage is less than the subscription usage, the shadow bill will charge the customers the subscription kWh x subscription price and CREDIT the customer the dynamic kWh x dynamic price for that interval. During intervals where the customers dynamic usage is greater than the subscription usage, the customer will charge the customers subscription kWh x subscription price and DEBIT the customer the dynamic kWh x dynamic price for that interval 4

Flexible Pricing Rate Shadow Billing Flexible Pricing Rate Shadow Billing 12-month Participation period Shadow billing will occur monthly for 12 months. At the end of the 12 months SCE will compare the OAT to the shadow bill. If the shadow billing results in the customer earning savings on the Flexible Pricing rate, a credit will be applied directly to the customer s bill. If the comparison results in the customer not benefitting on the Flexible Pricing rate, no additional charges will be assessed. After the 12 months the customer will start a new 12-month participation period, and this will repeat until the end of the pilot s duration period. Customers may elect to opt-out from the program at any time. There is no minimum time commitment. Customers can opt out by contacting SCE directly or their Automation Service Provider and opt-out will typically be processed within 1 to 2 billing periods. Opt-outs before the end of the 12-month participation period will have their credits if any, applied based on the number of months the customer participated in the pilot. Customers Participation Period may be shorter than 12 months if the customer is a Net Energy Metering (NEM) or Net Billing Tariff (NBT) customer and their account experiences a true-up. In that case the customer will also true-up on the Flexible Pricing Rate pilot in that same bill period. 5