Understanding LDC pricing product¶

The LDC pricing product is how your gas company calculates your bill. It includes:

Fixed fees (like delivery charges)
Variable costs (based on how much gas you use)
Government-approved rates (to make sure prices are fair)

This system ensures your bill is correct and follows all the rules.

Configure a LDC pricing product¶

Log in to the nGenue application.
Click on the Search icon and enter LDC pricing products in the search bar.
Double-click on the LDC pricing products in the search result to open the LDC pricing products screen.
The LDC pricing products screen is divided into two sections:
1. LDC selection
2. Pricing product details

1. LDC selection¶

The LDC selection displays the already configured LDC pricing product details.

To preview the LDC pricing product details:

Select the LDC from the drop-down list.
Enable the Filter by effective dates option and specify the desired date range.
To find existing LDC records, enter the LDC name in the Search string field.
Click on Load product details to proceed.

2. Pricing product details¶

This section consists of three tabs:

General: Configure basic details of the LDC pricing product.
Components: Add, edit, or manage pricing components.
Retail cashouts: Manage cashout records associated with the LDC pricing product.

General tab¶

Navigate to the General tab.
Click Add a LDC pricing record to create new pricing product.

Fill in the details as mentioned in the table below:

Fields	Description
LDC	Select the relevant LDC from the dropdown list.
LDC pooling	Select the appropriate pooling option that groups customers under the same pricing structure.
Rate rider	Select the rate rider from the dropdown list.
Product name/Code	Enter a unique name or code that identifies the product or defines the product name based on the configuration.
Units of Measure (UOM)	Refers to the standard measurement used to quantify the natural gas billed or tracked. Common units include: • Hundred cubic feet (CCF) • Thousand cubic feet (MCF) • Million British thermal units (MMBtu) • Million cubic feet (MMCF) • British thermal unit (energy) (BTU) • Therm: 100,000 BTUs
Public display name	Enter the desired public display name in this field.
Detailed description	Add a short description explaining the pricing product’s purpose and key details.
Start date/End date	Defines the start and end date for a pricing product.
Post-Term rollover price product	The post-term rollover price product (Evergreen) ensures uninterrupted service by automatically applying the designated pricing product and creates a price agreement when no active agreement exists but has reads from the utility.
Price method	Select the pricing method from the dropdown to determine the configuration of the agreement.

After entering all mandatory fields in the General section, click the View price configuration button.
The system will redirect to the Price template configuration screen, where you can configure the price method, volume, commodity and basis configurations, and tiers lock configuration.
Note

Critical validations:
1. Enabling WACOG: Ensure components marked as "part of WACOG" for any component which is required to be part of WACOG, and they will be shown under WACOG = Y in Quote customization.
2. Price agreement derivation: Verify WACOG and compute price align with the quote’s configured components.
3. Basis mandatory: If commodity is floating, basis must be configured (fixed or floating).

Component tab¶

In the Component tab, you can define different price components.

Key WACOG rules scenarios¶

Scenario	Commodity	Basis	WACOG enabled?	WACOG flow to price agreement	Compute price logic
Fixed + Fixed	Fixed	Fixed	Yes	Commodity	WACOG + Non-WACOG components
Fixed + Floating	Fixed	Floating	Yes	Commodity	WACOG + Non-WACOG components
Float + Fixed	Floating	Fixed	Yes	Basis	WACOG + Non-WACOG components
Floating + Floating	Floating	Floating	No	NO WACOG	Sum of all components (WACOG = 0)

Steps to create pricing components:

Navigate to the Components tab.
Select the month and year for the Pricing product.

Note

The Total price is calculated by adding up the prices of all the individual price product components (Sum of all pricing components).
Click on the Add pricing component icon; it will populate the Pricing component configuration screen.
Under Pricing component configuration, you can configure different types of Pricing component types such as:
- Defined tier adder
- Fixed fee
- LDC distribution charge
- Margin
- Pipeline transport fee
- POR (Purchase of Receivables)
- Storage charge
- Tier-1/Contract volume basis
- Tier-1/Contract volume commodity

Enable the following common checkboxes when creating a new pricing product:

Checkbox	Description
Applies to peak	If enabled, this will be implemented for Peak months (November to March).
Applies to off-peak	If enabled, this will be implemented for Off-Peak months (April to October).
Allow override	Enables users to manually adjust or modify the default value of the pricing component, if necessary. Can override in the Quote.
Include as part of WACOG	Specifies whether the pricing component should be included in the Weighted Average Cost of Gas (WACOG) calculation for the commodity.

Fixed fee¶

A charge that stays constant for a specified volume of natural gas.

Steps to create fixed fee component:

Select Fixed fee from the dropdown list as a pricing component type.

Fill in the fields as shown in the table below:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the fixed fee component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
Flat charges	Enter the flat/fixed charges.
Save and close	Saves the information and closes the add or edit Component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Save and close to save the fixed fee component configuration.

Defined tier adder¶

An additional charge applied to specific usage tiers in the pricing structure.

Steps to create defined tier adder:

Select Defined tier adder from the dropdown list as a pricing component Type.

Fill the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the defined tier adder component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
Adder type	Select the adder type from the dropdown.
Adder value	Enter the price for the adder type.
Save and close	Saves the information and closes the add or edit Component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Edit pricing adder type to add or modify adder types and default charge values.
Click Add a adder types record icon to create a new adder type (if required).
If no changes are needed, click Save and close.

Note

If a default value is provided, it will be pre-filled in the Adder value field. The user can modify this value as required.

LDC distribution charge¶

A fee charged by the LDC for delivering natural gas to the end-user. This covers the maintenance and operation of the distribution network.

Note

Before setting up the LDC distribution charge, ensure DQ values are added from the LDC Charge Definition screen.

Steps to create LDC distribution charge component:

Select LDC distribution charge from the dropdown list as a pricing component type.

Fill in the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the LDC distribution charge component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
LDC charge	Defined in the monthly LDC charge value screen.
LDC charge as of today	The active LDC gas delivery rate as of today.
Save and close	Saves the information and closes the Add or edit component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Edit LDC charge to add or modify default charge values.

Note

To ensure the LDC value displays correctly in the quote, verify:
a. DQ values are mandatory and must be provided.
b. In the LDC rate class, the specific daily value must match the corresponding value under the DQ values tab in the Prospect information screen.
In Tier 1 rate field, define the LDC charges for each month.
The Filter by month option allows users to search for charges applicable to a specific month.
If no changes are needed, click Save and close to save the configuration.

Margin¶

The difference between the cost of providing a service or product and the selling price, representing the profit.

Example

If the cost to supply natural gas is $5/unit and the supplier charges $7/unit, the margin is $2 (profit per unit).

Steps to create margin component:

Select Margin from the dropdown list as a pricing component type.

Fill in the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the margin component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
Margin	Enter the margin charge.
Save and close	Saves the information and closes the Add or edit component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Save and close to save the margin component configuration.

Pipeline transportation fee¶

A charge for moving natural gas through interstate or intrastate pipelines from the supply source to the LDC's distribution system.

Note

You must enter an end date in the LDC charge configuration for the system to display the pipeline values in the quote.

Steps to create pipeline transportation fee component:

Select Pipeline transportation fee from the dropdown list as a pricing component type.

Fill in the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the pricing component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
Pipeline component type	Enter the pipeline component type.
Pipeline name	Select the pipeline name from the dropdown.
Pipeline charge	Select the charge from the dropdown.
Zone name	Enter the name of the applicable zone.
Rate as of today	Update with current rates to determine pipeline transport fees.
Save and close	Saves the information and closes the Add or edit component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Edit pipeline charge to manually adjust the rate. Modify pipeline details if required.
Click Save and close to save the configuration.

Purchase of Receivables (POR)¶

The utility pays the gas supplier for customer bills and then collects the money from the customers.

Note

Ensure POR is enabled in the LDC rate class screen. If not enabled, it will not appear in the component type.

Example

Customer bill: $100
Utility pays supplier $98 (keeps $2 as a fee).
Utility bills customer $100 and collects payment.

Steps to create POR component:

Select POR from the dropdown list as a pricing component type.

Fill in the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the POR component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
POR	Non-editable; values are derived from the LDC rate class.
Save and close	Saves the information and closes the Add or edit component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Save and close to save the POR component configuration.

Storage charge¶

The cost for storing natural gas to ensure it’s available when demand is high.

Note

You must enter an end date in the LDC charge configuration for the system to display the storage charge values in the quote.

Steps to create storage charge component:

Select Storage charge from the dropdown list as a pricing component type.

Fill in the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the storage charge component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
Pipeline component type	Enter the pipeline component type.
Pipeline name	Select the pipeline name from the dropdown.
Storage charge	Select the charge from the dropdown.
Zone name	Enter the name of the applicable zone.
Rate as of today	Update with current rates to determine storage fees.
Save and close	Saves the information and closes the Add or edit component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Edit storage charge to manually adjust the rate.
Update storage fees if required.
Click Save and close to save the configuration.

Tier-1/Contract volume basis¶

Fixed charges based on a pre-agreed volume, regardless of actual usage.

Steps to create Tier-1/contract volume basis component:

Select Tier-1/Contract volume basis from the dropdown list as a pricing component type.

Fill in the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
Type	Select from: • Fixed: Constant price. • Floating: Fluctuates based on market indices. • Fixed from today's index: Fixed price based on the current index rate.
Basis	Specify the charge for the selected pricing basis.
Basis index	Select the Basis index from the dropdown.
Index point	Choose the appropriate index point.
Rate as of today	Update with current rates.
Save and close	Saves the information and closes the Add or edit component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Edit index value to manually adjust values.
In the Index curve definition screen, input charges monthly or daily.
Click Save and close to save the configuration.

Tier-1/Contract volume commodity¶

Choose Tier-1/Contract volume commodity as the component type.

Steps to create Tier-1/contract volume commodity component:

Select Tier-1/Contract volume commodity from the dropdown list as a pricing component type.

Fill in the following fields:

Fields	Description
LDC	Select the LDC from the dropdown.
Description	Description of the component.
Date/Time	The date and time when the pricing component is defined.
Created by	Name of the person who defined the pricing component.
Updated by	Initially matches created by. Updates automatically when changes are made.
Type	Select from: • Fixed: Constant price. • Floating: Fluctuates based on market indices. • Fixed from today's index: Fixed price based on the current index rate.
Fixed price	Specify the charge for the selected pricing basis.
Index definition	Select the index definition (created in Index curve definition).
Index point	Choose the appropriate index point.
Rate as of today	Update with current rates.
Save and close	Saves the information and closes the Add or edit component screen.
Save and new	Saves the current component and opens a new one for configuration.

Click Edit index value to manually adjust values.
In the Index/Curve values screen, input charges monthly or daily.
Click Save and close to save the configuration.

Retail cashouts tab¶

Cashouts are financial adjustments when actual usage differs from the contracted quantity. The system calculates the difference and applies predefined rates to settle the imbalance.

Example

Contracted quantity: 28,569 units
Actual usage: 29,089 units
Difference: 520 units → Charged at $2.222/unit.

Swing: Defines the allowable percentage deviation from the contracted quantity.

Within swing: Fixed rate applies.
Exceeds swing: Excess charged at a different rate (e.g., market price).
Example
- Contracted quantity: 28,569 units
- Swing threshold: 10% (2,856.9 units)
- Actual usage: 29,089 units → 520 units within swing → Charged at $2.222/unit.
- If usage exceeds swing (e.g., 32,000 units): Excess (3,431 units) charged at market rate.

Tolerance: Operational allowances for variances (e.g., fuel loss). Adjustments occur automatically without penalties.

Example

Total fuel: 38,000 units
Fuel loss tolerance: 5% (1,900 units)
System deducts 1,900 units before billing.

Steps to configure a retail cashout:

Navigate to the Retail cashouts tab.
Click Add new cashout.
Select the Cashout definition from the drop-down.

Note

Cashout definition configured in the Retail cashout definition screen. Common scenarios:
• 0% swing: No deviation allowed. Penalties apply immediately.
• 10% swing: Permits up to 10% over-usage before penalties.
Set the Tolerance level.
Select the Start date and end date.
Enable Daily calculation (checkbox).

Click on the Tier 1 pricing or Tier 2 pricing tabs, which is categorized into two scenarios:
a. Excess: Charges for usage above the contracted quantity.
b. Short: Charges for usage below the contracted quantity.

Excess section¶

Fields	Description
Price formula	Method to calculate cashout charges (e.g., fixed, index).
Index (if applicable)	Use a market-based rate.
Percent	Weight applied to the index (100% = full index value).
Fixed price	Flat rate per unit for excess usage.
Premium rate	Additional charge per unit for excess usage.
Margin/Broker fee	Extra costs added to the total cashout amount.

Short section¶

Fields	Description
Price formula	Method to calculate cashout charges.
Index (if applicable)	Use a market-based rate.
Percent	Weight applied to the index.
Fixed price	Flat rate per unit for under-usage.
Restocking rate	Fee per unit for under-usage.
Margin/Broker fee	Extra costs added to the total cashout amount.

Click Accept to save the configuration.