diff --git a/docs/enhancements/per-second-usage-billing/README.md b/docs/enhancements/per-second-usage-billing/README.md
new file mode 100644
index 00000000..4eafb7ea
--- /dev/null
+++ b/docs/enhancements/per-second-usage-billing/README.md
@@ -0,0 +1,337 @@
+---
+status: draft
+stage: alpha
+latest-milestone: "v0.x"
+---
+
+# Per-Second Usage Billing for Compute
+
+- [Summary](#summary)
+- [Motivation](#motivation)
+  - [Goals](#goals)
+  - [Non-Goals](#non-goals)
+- [Proposal](#proposal)
+  - [Where Compute Fits](#where-compute-fits)
+  - [User Stories](#user-stories)
+  - [How It Works](#how-it-works)
+  - [Risks and Mitigations](#risks-and-mitigations)
+- [Design Details](#design-details)
+  - [The Instance Controller Is the Metering Point](#the-instance-controller-is-the-metering-point)
+  - [What It Tracks per Instance](#what-it-tracks-per-instance)
+  - [How the Running Time Becomes Usage](#how-the-running-time-becomes-usage)
+  - [Downtime and Crash Recovery](#downtime-and-crash-recovery)
+- [Drawbacks](#drawbacks)
+- [Alternatives](#alternatives)
+- [Production Readiness Review Questionnaire](#production-readiness-review-questionnaire)
+  - [Feature Enablement and Rollback](#feature-enablement-and-rollback)
+  - [Monitoring Requirements](#monitoring-requirements)
+  - [Dependencies](#dependencies)
+  - [Scalability](#scalability)
+  - [Troubleshooting](#troubleshooting)
+- [Implementation History](#implementation-history)
+- [Infrastructure Needed](#infrastructure-needed)
+
+## Summary
+
+Today, projects are not billed for the compute they use. This enhancement makes
+Compute **meter and hand off exact, per-second usage** — how many vCPUs and how
+much memory each customer's workloads actually consumed — to the platform
+billing pipeline. Customers get billed for what they truly run, **only while
+they are running**, and nothing else.
+
+Compute's job here is narrow and precise: **know how long an instance actually
+ran** and report that accurately. It does not set prices, decide who owes what,
+or generate invoices — those already live in the platform billing stack. Compute
+measures; the billing platform prices and invoices.
+
+## Motivation
+
+Compute currently gives every customer a fixed pool of resources and enforces
+limits against it (see [quota enforcement](../quota-enforcement/README.md)), but
+nothing records how much of that pool a customer actually used. That means:
+
+- **Customers who run little pay the same as those who run a lot.** Consumption
+  is invisible, so usage can't factor into fair, consumption-based billing.
+- **There is no accurate, auditable number** beyond a reservation — no count of
+  hours used, no basis for usage-based pricing, no way for a customer to see
+  their real footprint.
+
+Billing against actual, per-second consumption fixes both. It gives the platform
+an accurate, trusted measure of what each project used, for the exact time it
+used it — and it gives customers a bill that reflects reality, not a ceiling.
+
+### Goals
+
+- Compute records, for each project, the **actual running time** of its compute
+  workloads, counted per second.
+- That running time is broken out by resource — **vCPUs** and **memory** — so the
+  billing platform can price them (possibly differently) later.
+- **Customers are billed only for time they actually ran** — nothing accrues
+  while a workload is stopped, and suspension stops accrual entirely.
+- The usage Compute reports is **exact and trustworthy**: no double-counting on
+  retries, no gaps on faults, and it survives operator and controller restarts.
+- The meter definitions Compute emits match what the billing platform expects,
+  so usage lands cleanly instead of being rejected.
+- Compute's contribution is **hand-off only**. It measures and reports; pricing
+  and invoicing stay in the billing platform.
+
+### Non-Goals
+
+- **Pricing, rate cards, or invoices.** Compute does not decide what a vCPU-hour
+  costs or bill anyone. It produces usage; the platform turns that into money.
+- **Metering things Compute doesn't run.** Billing is for **running** instances
+  only — while one is available and running. Reserved-but-idle capacity is not
+  billed through this mechanism.
+- **Per-second bookkeeping on the wire.** Billing is per-second in *denomination
+  and accuracy*, but events are batched, so usage is not a billion little events.
+  This keeps the pipeline efficient while billing stays exact.
+- **Replacing capacity reservation / quota.** Quota enforcement keeps limiting
+  what a project *may* run; this enhancement measures what it *did* run. Both
+  coexist.
+- **Attributing usage to a billing account.** Compute reports which **project**
+  used the resources; mapping project → account (and organizing it by the right
+  customer) is the billing platform's job.
+
+## Proposal
+
+### Where Compute Fits
+
+Compute runs customer workloads and knows, moment to moment, what is actually
+running. It turns that into usage records and hands them to the platform's
+billing pipeline, which meters them against price and sends the result to
+billing:
+
+![How Compute's usage reaches the billing pipeline](./architecture-context.png)
+
+### User Stories
+
+**Consumption-based billing.** A customer runs a small workload for a few hours
+and a large one for a week. Their invoice reflects each: measured vCPU and
+memory for exactly the time each instance ran — no more, no less.
+
+**Stop means stop.** A customer stops a workload on Friday night. Saturday
+onwards accrues nothing. When they start it again Monday, billing resumes from
+that point — there is no charge for the gap.
+
+**Suspended costs nothing.** A customer's project is suspended. Instances stop
+running, so they stop costing anything, the moment that happens. Billing
+resumes only if (and when) the instance actually runs again.
+
+**An operator trusts the number.** Whether an event is retried, a controller
+restarts, or write hiccups occur, the usage that lands is the same quantity it
+should be — never double-counted, never silently dropped.
+
+### How It Works
+
+**Only running instances bill.** An instance accrues usage while it is running
+and stops accruing the moment it leaves the running state (stopped, terminated,
+or suspended). Usage is therefore a measure of *actual uptime*, not potential.
+
+**Per second, batched.** An instance's running time is accounted for in seconds,
+but recorded in intervals. Any workload that has been running continuously for
+the reporting interval reports its accumulated seconds in one record — e.g. a
+workload that ran for five minutes reports 300 seconds (times its resource
+size) in one event, not 300 separate events.
+
+**What gets recorded, per project:**
+
+- **CPU** — vCPU-seconds: how many vCPUs the instances ran, for how long.
+- **Memory** — memory byte-seconds: how much memory the instances used, for how
+  long.
+
+**When a workload stops**, the final partial interval is reported up to the
+moment it stopped, so the exact time it ran is captured.
+
+The sequence an instance follows over its life:
+
+```mermaid
+stateDiagram-v2
+    [*] --> Running: Instance starts
+    Running --> Running: Usage accrues while running
+    Running --> Stopped: Instance stops
+    Stopped --> Running: Instance restarts
+    Stopped --> [*]: Terminated
+    Running --> [*]: Circle = no accrual when not running
+```
+
+Nothing about this changes how customers run their workloads. They create,
+start, stop, and delete instances exactly as today; measuring usage is
+invisible to them.
+
+## Design Details
+
+### The Instance Controller Is the Metering Point
+
+Compute already has a component — the **Instance Controller** — that shepherds
+every instance through its life: when it starts, when it becomes available,
+when it stops, and when it's removed. Only it sees, centrally, that an
+instance is actually **running**. Because it already knows this, it is the
+natural and only place to record "how long did this instance run." There is no
+separate metering service or per-runtime timers; the controller simply adds
+usage accounting wherever it already observes an instance changing state.
+
+### What It Tracks per Instance
+
+For each instance, the controller remembers two things across its lifetime:
+
+- **When the current running stretch began** — the moment the instance became
+  available/running, so the clock can start without it having to be observed
+  every single second.
+- **How far usage has already been reported** — so that on the next report it
+  only covers new time, never re-counts what was already handed off.
+
+This bookkeeping belongs to the instance and persists with it, so it survives
+the controller itself restarting — metering doesn't lose its place when a
+process is recycled. (If the instance is created or its state is reset, the
+tracking starts fresh from that point.)
+
+> [!NOTE]
+> This tracking is **persisted with the instance** (in the cluster's API
+> storage), not held in the controller's memory — so the controller restarting
+> or going down never loses it.
+
+### How the Running Time Becomes Usage
+
+On any of the transitions the controller already handles, it turns the tracked
+running time into usage:
+
+- **While running**, it reports in intervals: what has accumulated since the
+  last report is handed off as one record (CPU + memory for that window).
+- **When the instance stops, terminates, or suspends**, it reports the final
+  partial interval up to the moment of the transition, then stops — so the
+  exact runtime is captured and nothing accrues once it's no longer running.
+
+A signed-off report hand-off that fails is retried for the **same window**, so
+no double-count on a retry. The controller therefore never has to be exact at
+any single instant — it just needs to be exact about *when the running state
+changed*, which it already observes.
+
+### Downtime and Crash Recovery
+
+The metering bookkeeping is stored with the instance itself, not in the
+controller's memory, so an outage does **not** erase running time:
+
+- **Controller restarts (or is down briefly).** Instances keep running; on
+  restart the controller reads back each instance's markers and bills from the
+  last successfully-reported point forward to now. The downtime is recovered
+  and billed — nothing is missed, it is simply billed late.
+- **Controller is down for a long stretch.** Running time keeps accumulating and
+  is all billed on recovery. Correct, but a larger single catch-up window and a
+  longer unbilled lag while it is down.
+
+Two genuinely bounded limits apply:
+
+- **The instance is deleted while the controller is down.** Its markers are
+  deleted with it, losing the unreported window — bounded to at most one
+  reporting interval (default five minutes), because normal operation flushes
+  at least that often.
+- **A crash between handing usage to the pipeline and recording that it was
+  handed off.** On restart that window is re-reported; whether it double-counts
+  depends on the pipeline deduplicating by event *content* (quantity) rather
+  than only by event *identity* — a check the billing platform must honor.
+
+### Risks and Mitigations
+
+- **Usage events are rejected because the meter isn't registered/declared.**
+  Compute's meter definitions and the billing platform's expectations must agree
+  one-for-one. Mitigation: Compute ships the declarations and emits consistently
+  against them; a mismatch surfaces loudly in monitoring (see
+  [Monitoring Requirements](#monitoring-requirements)) rather than silently
+  underbilling.
+- **A transient write failure could, naively, double-count or drop usage.**
+  Mitigation: recording is designed so a retry produces the *same* usage for the
+  same interval, and a crash loses at most a bounded, small window. The reported
+  number stays trustworthy.
+- **Operators can't tell whether usage is flowing.** Mitigation: dedicated
+  signals surface usage being emitted and usage being rejected/errored, so "is
+  billing working?" is answerable at a glance.
+- **This depends on the platform billing pipeline existing and being wired.**
+  Compute's side can be developed, gated, and tested independently, and only
+  begins reporting once enabled and pointed at the pipeline.
+
+## Drawbacks
+
+- **The platform's first dependency on the billing pipeline for compute.** Until
+  it's proven, Compute's usage telemetry is new infrastructure carrying the
+  billing path. This is mitigated by shipping behind a feature gate and
+  monitoring hand-off closely before broad enablement.
+- **Billing is exact, which means it's transactional in nature.** Accurate
+  per-second usage is more operational care than a flat capacity charge — but
+  it's exactly what fair, consumption-based billing requires.
+
+## Alternatives
+
+- **Bill against reserved capacity (instances *could* run), not actual usage.**
+  Rejected. It's the status quo's implicit model and doesn't reward efficiency
+  or reflect real consumption; a customer who never starts a workload would
+  still be capped-and-charged as if they had. Billing actual usage is the
+  differential this enhancement exists to provide.
+- **Emit a record every single second.** Rejected. Per-second accuracy does not
+  need per-second events, which would impose unreasonable volume and pipeline
+  load for no additional billing fidelity (the batching in
+  [How It Works](#how-it-works) is exact).
+- **Have each runtime separately report and reconcile usage.** Rejected in favor
+  of a single, authoritative metering point in Compute, so all runtimes report
+  consistently through one path and there is one number to trust.
+
+## Production Readiness Review Questionnaire
+
+> Trimmed to the subsections relevant at alpha, following the precedent of other
+> compute enhancements. Beta-targeted subsections (rollout/upgrade/rollback
+> planning) are deferred.
+
+### Feature Enablement and Rollback
+
+- [x] Feature gate
+  - Usage emission ships behind a feature gate, **off by default**, and is only
+    enabled once configured and pointed at the billing pipeline. A deployment
+    that hasn't opted in emits nothing.
+  - Enabling/disabling takes effect on restart with the changed configuration;
+    no control-plane downtime.
+  - Rollback is turning the feature off — usage emission stops; no existing
+    behavior is affected.
+
+### Monitoring Requirements
+
+- [x] Other (dedicated usage/billing telemetry)
+  - Signals distinguish usage being **emitted** (successfully handed off) from
+    usage **errored/rejected** (not reaching the pipeline). A rising rejection
+    rate with flat emission is the "billing may be silently broken" alarm —
+    especially the case where events are rejected for an undeclared meter.
+
+### Dependencies
+
+- The **platform billing pipeline** and the **meter/resource-type definitions**
+  it fans out from Compute. Usage is only billable if Compute's declared meters
+  and the pipeline's expectations agree, and events actually reach the pipeline.
+  If the pipeline is unreachable, emission blocks and surfaces the error (no
+  silent underbilling).
+
+### Scalability
+
+- Usage volume is bounded by the **number of running instances** times the
+  reporting interval — not by per-second count. A large fleet adds proportionally
+  more records, but each instance stays a small, infrequent contributor, so the
+  load scales linearly and manageably with fleet size rather than with wall-clock
+  seconds.
+
+### Troubleshooting
+
+- **"No usage is landing."** Confirm emission is enabled and configured, and that
+  the pipeline is reachable. If events are being rejected, check that Compute's
+  declared meters are present and registered on the platform side.
+- **"Usage for X looks wrong."** Confirm the instance actually ran for the window
+  in question (stopped/suspended time is not billable), and consult the
+  emission/rejection signals to rule out a hand-off problem.
+
+## Implementation History
+
+- **Proposed here.** Initial capability and hand-off design.
+
+## Infrastructure Needed
+
+- The **platform billing pipeline** must be available and wired to accept
+  Compute's usage records, and Compute's meter/resource-type declarations must be
+  registered on the platform side (just-in-time as emission is enabled).
+- No new customer-facing surface: measuring usage requires no customer behavior
+  change.
diff --git a/docs/enhancements/per-second-usage-billing/architecture-context.png b/docs/enhancements/per-second-usage-billing/architecture-context.png
new file mode 100644
index 00000000..9064030a
Binary files /dev/null and b/docs/enhancements/per-second-usage-billing/architecture-context.png differ
diff --git a/docs/enhancements/per-second-usage-billing/architecture-context.puml b/docs/enhancements/per-second-usage-billing/architecture-context.puml
new file mode 100644
index 00000000..761f5841
--- /dev/null
+++ b/docs/enhancements/per-second-usage-billing/architecture-context.puml
@@ -0,0 +1,21 @@
+@startuml architecture-context
+!$NEW_C4_STYLE = 1
+!include https://raw.githubusercontent.com/plantuml-stdlib/C4-PlantUML/master/C4_Component.puml
+!include https://raw.githubusercontent.com/datum-cloud/enhancements/main/enhancements/datum-theme.puml
+
+Person(customer, "Customer", "Runs compute workloads; billed for what they use")
+
+System(billing, "Billing Platform", "Turns measured usage into invoices")
+
+System_Boundary(compute, "Compute") {
+    Container(instances, "Instances", "Virtual machines / workloads running on behalf of the customer")
+    Container(controller, "Instance Controller", "Knows when an instance is running and records how long it ran", "Measures vCPU + memory usage per project")
+}
+
+Rel_U(customer, compute, "Runs workloads")
+Rel_D(instances, controller, "Is observed while running")
+Rel_R(controller, billing, "Reports measured usage")
+Rel_U(billing, customer, "Invoices based on usage")
+
+SHOW_LEGEND()
+@enduml