Average annual consumption

Average annual consumption refers to the average monthly consumption recorded for a utility account service for the previous year.

Because some agencies use this value to calculate their monthly utility charges, you have the option of calculating and storing the average consumption for each service. The calculation is performed by an Average Annual Consumption Run task that you must set up in the Batch Manager. Average Annual Consumption Setup defines the parameters used for this calculation.

To calculate a service's average annual consumption, the total consumption for either the previous calendar year or the previous 12 months is added up and divided by 12. Select Last 12 months or Last calendar year to indicate which option you want to use. You can also discount the average annual consumption by entering a value in the Discount Percentage field. For example, if you enter 90 as the discount percentage, a service's total consumption for the previous year will be multiplied by 0.90 and divided by 12.

After it is calculated, the average annual consumption is available to be used in percentage-based rate tables. For example, a water customer might be charged $0.075 per 100 gallons if a month's usage is less than or equal to the average annual consumption; $0.095 per 100 gallons if usage is 100-125% of the average annual consumption; and $0.125 per 100 gallons for 125-150%.