The Framework

8 Clocks. One Repayment Goal.

Every clock feeds a single master metric — the Day 90 repayment coverage ratio. Each process window is tracked, thresholded, and owned. Nothing runs blind.

All 8 Reconciliation Clocks

Mapped, Timed, and Connected

01
Commodity vs. Billed
Day 0 – 90
Over/under buy versus actual billed usage. Drift here creates cost overruns that compress margin and reduce cash available for repayment.
02
Enrollment to First Bill
Day 0 – 35
Tracks enrollment churn and drop-out rate. Every failed enrollment is revenue that never enters the cycle — a permanent cash hole.
03
Bill Cycle + Unbilled Usage
Day 15 – 55
Unbilled usage exceptions must resolve before invoicing. An unbilled rate above 8% triggers alert thresholds and requires active remediation within 3 business days.
04
Receivables + Cash App
Day 30 – 90
DSO exceeding 40 days = AR lockup. Cash applied late doesn't count as collected until booked. Tracks payment application lag across all customer accounts.
05
TDU Payments + Back Billing
Day 40 – 90
TDSP usage reconciliation to the billing register. Back billing corrections can re-open settled periods and create unexpected cash swings late in the window.
06
EDI Transaction Recon
Day 0 – 70
EDI transactions reconciled to billing systems. Rejected or unacknowledged EDI files delay enrollment and billing cycles — the ripple effect touches Clocks 2 and 3.
Master
07
Revolver Repayment
Day 0 – 90
The master clock. All six operational clocks and the PJM clock feed this single metric. Coverage ratio must reach ≥ 1.0× by Day 87 to ensure Day 90/91 repayment.
PJM Only
08
PJM Utility Billing + Remit
Day 20 – 70
Usage billing, payment tracking, and reconciliation in utility consolidated billing markets. The LDC controls collection — the REP cannot accelerate cash it doesn't receive.

Why one master metric?

All 8 clocks ultimately answer one question: will we have enough cash collected to repay the draw balance in full by Day 90? The coverage ratio (Net Collections ÷ Outstanding Draw Balance) collapses 8 processes into a single daily number that treasury, operations, and lenders can all track in real time.

What the RAG system does

Each clock has thresholds — KPI values that trigger Amber or Red alerts before the problem reaches the master clock. An unbilled rate of 8%+ triggers Clock 3. DSO above 40 days triggers Clock 4. This early-warning system gives owners 30–45 days to correct course — not 5.

Clock 8 — PJM-Specific Module

The Hidden Cash Trap in PJM

In utility consolidated billing markets, the LDC — not the REP — controls collection and remittance. This creates a structural blind spot that compounds every quarter without visibility.

PJM UB Model Only

What Clock 8 Monitors

Clock 8 tracks six distinct data points that no other clock covers: submission confirmation, remittance ETA by LDC, variance vs. billed ($), dispute tracking & coverage impact, and the structural lag between customer payment and REP receipt.

6.7%
Coverage drop per 10-day delay on $2M
50+
Days of blind spot in the UB cycle
$500K+
Typical dispute exposure per cycle
REP has no collection lever during the utility cycle. Utility deductions with 60+ day resolution SLAs can surface well after Day 90 — creating true-up exposure that hits the next revolver cycle.

Clock 8 — The UB Cycle Flow

Day 20–25
REP submits usage data to the utility (LDC)
Day 25–35
Utility runs its billing cycle — REP has no visibility
Day 35–55
Customer pays the utility directly — cash does not flow to REP
Day 45–70
Utility remits to REP — timing varies by LDC, typically 30–45 day lag
Day 50–60
REP reconciles remittance vs. billed amount — disputes flagged
Day 55–90+
Disputes resolved — resolution SLA often exceeds 60 days
Capacity obligation charges, RPM true-ups, and congestion costs keep rising. Without Clock 8, each quarter adds unbudgeted exposure that only surfaces at final ISO statement.

Ready to put all 8 clocks to work?

The framework instruments all 8 clocks on a live portfolio segment.

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