In the years in which O/As perform a factor-based analysis, do O/As take the previous utility allowance before rounding or after rounding and then apply the factor?

FAQ Content

Calculate the new UA both ways, with and without rounding. The new UA will be whichever method provides the higher UA. The table below shows two examples.

Example 1 results in a UA of $46, both with and without rounding. The UA will therefore be $46. In Example 2, the UA with rounding results in a UA of $82; without rounding, the UA is $81. The UA will therefore be $82.

First-Year Adjustment

Example 1

Example 2

Current UA

$50 (gas: $15; electricity: $35)

$75 (gas: $10; electricity: $65)

UAF

Gas: 0.892Electricity: 0.992

Gas: 1.018Electricity: 1.039

First-year adjustment

$15 x 0.892 = $13.38$35 x 0.992 = $34.72

$10 x 1.018 = $10.18$65 x 1.039 = $67.54

New UA

$13.38 + $34.72 =$48.10New UA = $48

$10.18 + $67.54 =$77.72New UA = $78

Second-Year Adjustment

Current UA

$48 (gas: $13; electricity: $35)

$78 (gas: $10; electricity: $68)

UAF

Gas: 0.892Electricity: 0.992

Gas: 1.018Electricity: 1.039

With Rounding

Second-year adjustment

$13 x 0.892 = $11.60$35 x 0.992 = $34.72

10 x 1.018 = $11.08$68 x 1.039 = $70.65

New UA

$11.60 + $34.72 =$46.32New UA = $46

$11.08 + $70.65 =$81.73New UA = $82

Without Rounding


Second-year adjustment

$13.38 x 0.892 =$11.93$34.72 x 0.992 =$34.44

$10.18 x 1.018 =$10.36$67.54 x 1.039 =$70.17

New UA

$11.93 + $34.44 =$46.37New UA = $46

$10.36 + $70.17 =$80.53New UA = $81