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Understanding Prior Period Adjustments (PPA)

Prior Period Adjustments (PPA) refer to the billing corrections or adjustments made for previously billed periods. These adjustments are necessary when changes are identified after an invoice has been generated — such as revised usage data, rate changes, tax corrections, or late updates from Local Distribution Company (LDC).

The Retail PPA process ensures that any retroactive changes are properly accounted for and reflected in subsequent billing cycles, maintaining accuracy and transparency in end-user invoices.

PPAs typically arise when:

  • An LDC provides updated meter readings or corrected consumption data for a prior billing period.
  • A rate plan, tax rate, or market price applicable to a previous month is revised.
  • Manual corrections or credits are issued for prior errors in billing calculations.

The Retail PPA Staged screen allows billing analysts to query, view, and validate staged PPA records before they are processed and applied to customer invoices. The staged data helps analysts review pending adjustments, ensuring accuracy and avoiding duplicate billing.