Rate Innovation for Electric Cooperatives

Rate Innovation for Cooperatives and Public Power

March 29-30, 2022 | Online :: Central Time

“It is always interesting to hear how utilities across the country are addressing the industry challenges we face. EUCI covers good content in conferences.” – Manager, Energy Services & Strategic Programs, East Central Energy

“EUCI conferences always contain great and timely topics. Presenters are always well prepared and EUCI does a fantastic job in facilitating the training, whether it be in person or online” – Pricing and Rates Supervisor, NPPD

“EUCI’s rate innovation conference offered very valuable information for cooperatives. Learning new ways to structure rates was refreshing and helpful to proactively plan communications strategies.” – Director of Business Development & Communications, Cloverland Electric Cooperative

Every home, store, factory, office building, and hospital receives a monthly electric bill from their local utility that includes charges associated with keeping the lights on. The cost of electricity that appears on the bill depends on a complex set of variables that are different across north America. One variable that influences the costs incurred by utilities, and thereby what the retail rate customers pay, is the wholesale electricity market. Some utilities purchase all their customer load at wholesale, and others purchase power as a small supplement to their owned generation. Many states have policies in place that promote a long-term transition to cleaner renewable sources of energy. As a result, wholesale markets may need to adapt in the future to better accommodate these different types of resources.

This transition to cleaner renewable sources of energy (beneficial electrification) is driving utilities to undergo sweeping changes as the energy industry continues to transform. As customer energy consumption patterns change because of beneficial electrification, traditional rate design may not best serve individual consumers or society in general. More sophisticated utility pricing can foster innovation while ensuring customers pay for the utility services they use. EUCI’s virtual Rate Innovation for Cooperatives and Public Power conference will help you keep abreast of these unique challenges and undertake rate innovation initiatives in a practical and manageable way. Join us at this educational event and learn how wholesale pricing and different facets of beneficial electrification are shaping rate design now and in the future.

Learning Outcomes

  • Identify different rate design options for cooperatives and public power utilities
  • Discuss how to work with utility members and get them more involved while reducing wholesale rates
  • Review ways to handle generation and transmission price volatility
  • Discuss lessons learned about residential demand charges
  • Evaluate different utilities’ offering of a demand rate to their residential customer base
  • Examine the effect of rate design on electric vehicle (EV) charging behavior
  • Discuss the potential unintended consequences of certain rate designs
  • Explore new offerings for the customers of tomorrow
  • Discuss accelerating the adoption of advanced residential rates

    Agenda

    Tuesday, March 29, 2022 : Central Time

    12:45 – 1:00 p.m.
    Log In

    1:00 – 4:45 p.m.
    Conference Timing

     

    1:00 – 1:15 p.m. :: Opening Announcements

    1:15 – 4:45 p.m. :: Session I: Wholesale Pricing Initiatives

    (Includes breaks)

    Session I Overview

    Electric utility procurement decisions have important implications for rates, resource adequacy, environmental impacts, and cost recovery for load serving entities (LSEs). The distance between generation services markets and retail customers has been narrowing for several years. Customer interest in marginal cost-based pricing to support distributed energy resources and customer-site storage, and for incremental energy, when available, continues to increase. This session will review the connections between the wholesale pricing of generation services and the retail prices that cooperatives use in serving their customers. It will feature industry practitioners describing their experiences of managing the risks inherent in wholesale generation service by designing innovative wholesale contracts and retail rate designs.

    Session I Speakers

    Reducing Wholesale Rates for Members

    Duane Highley, CEO, Tri-State Generation and Transmission Association, Inc.

     

    Improving Wholesale Price Signals – Second Year Results

    Zach Anderson, CFO, Wolverine Power

     

    The Texas Power Outage: Austin Energy’s Retail Pricing Experience

    Michael Enger, Director, Energy Market Operations, Austin Energy

     

    Managing G&T Price Volatility for Electric Cooperatives

    Jim Lamb, SVP, Central Electric Power Cooperative

     

    Session I Panel Discussion: Wholesale Pricing

    This panel discussion will allow symposium attendees to ask specific questions of the presenters for discussion related to their experience on the methodologies of pricing for generation services and other similar topics described in this session.

    Moderator:

    Robert Camfield, Senior Regulatory Consultant, Christensen Associates

    Panelists:

    Duane Highley, CEO, Tri-State Generation and Transmission Association, Inc.

    Zach Anderson, CFO, Wolverine Power

    Michael Enger, Director, Energy Market Operations, Austin Energy

    Jim Lamb, SVP, Central Electric Power Cooperative

     

    Wednesday, March 30, 2022 : Central Time

    8:45 – 9:00 a.m.
    Log In and Welcome

    12:15 – 1:00 p.m.
    Lunch Break

    9:00 a.m. – 4:30 p.m.
    Conference Timing

     

    9:00 a.m. – 12:15 p.m. :: Session II: EV Charging to Support Beneficial Electrification  

    (Includes breaks)

    Beneficial Electrification Overview

    The emerging cost of greenhouse gas pollution is tilting energy use in favor of renewable electricity. This conversion, “beneficial electrification”, can be facilitated by innovations in retail electricity pricing. Electric cooperatives across the country are pioneering emerging technological advances and thus are leading the beneficial electrification movement. Rate design advances to support distributed energy resources, customer-site energy storage, electric vehicle charging, and business applications of green electric energy are under development. New rates, which often used market-based generation prices, need to be incorporated alongside existing rates, which still rely on embedded cost-based pricing. This often sets up disturbing challenges in rate making that require careful consideration and significant customer contact for successful implementation. Day 2 begins with a keynote presentation on beneficial electrification by Keith Dennis, formerly of NRECA, who helped to pioneer the use of the term and has been instrumental in advancing such practices with NRECA members.

    Session II Overview:

    In this session, hear how utilities are facilitating EV charging adoption by experimenting with marginal cost-based pricing techniques that cover costs and deliver advantageous pricing options. The session also includes a presentation on the energy intensive process of cryptocurrency mining, which is creating challenges and opportunities for electric co-ops to build beneficial new load.

    Session II Speakers

    Keynote Address on Beneficial Electrification

    Keith Dennis, President, Beneficial Electrification League

     

    EV Charging Rate Design Alternatives for Public Power Companies

    Patricia Taylor, Senior Manager, Regulatory Policy and Business Programs, American Public Power Association (APPA)

     

    EV Subscription Rate at Connexus Energy – The How and Why

    Brian Burandt, VP of Power Supply and Business Development, Connexus Energy

     

    Cryptocurrency and Energy Consumption

    Allison Hamilton, Director Markets & Rates, NRECA

     

    Morning Panel Discussion on Beneficial Electrification

    This panel discussion will allow symposium attendees to ask specific questions of the presenters related to the alternative approaches to distributed energy resources (DER) pricing including innovative approaches to EV charging.

    Moderator:

    Bruce Chapman, Vice President, Christensen Associates

    Panelists:

    Keith Dennis, President, Beneficial Electrification League

    Patricia Taylor, Senior Manager, Regulatory Policy and Business Programs, American Public Power Association (APPA)

    Brian Burandt, VP of Power Supply and Business Development, Connexus Energy

    Allison Hamilton, Director Markets & Rates, NRECA

    12:15 – 1:00 p.m. :: Lunch Break

    1:00 – 4:30 p.m. :: Session III: Time Varying Rates to Support Beneficial Electrification 

    Session III Overview:

    Presenters in this session will document how they have used time-varying rate designs to provide customers with pricing that better reflects utility costs. Techniques include dynamic time-of-day pricing and the use of three-part pricing for mass market customers, i.e., residential demand charges. These techniques help to achieve fixed cost recovery while showing customers an energy price that better reflects incremental cost to serve.

    Session III Speakers:

    Default Residential Time-of-Day (TOD) Rates

    Randy Reuscher, Lead Analyst, Utility Rates, Fort Collins Utility

     

    Three-Part Rates and Beneficial Electrification at CORE Electric

    David Stowe, Rate Analyst, CORE Electric Cooperative

     

    Pricing Issues for DER Customers with Storage Capability

    George Porter, Director Rates Modernization, NB Power

     

    Implementing Residential Demand Charges

    Jennifer Grossl, Communications Manager, Platte-Clay Electric Cooperative

     

    Afternoon Panel Discussion on Beneficial Electrification

    This panel discussion will allow symposium attendees to ask specific questions of the session presenters related to the alternative approaches to distributed energy resources (DER) pricing including: TOU/TOD rates, energy storage, residential demand charges, three-part rates, etc.

    Moderator:

    Allison Hamilton, Director Markets & Rates, NRECA

    Panelists:

    Randy Reuscher, Lead Analyst, Utility Rates, Fort Collins Utility

    David Stowe, Rate Analyst, CORE Electric Cooperative

    George Porter, Director Rates Modernization, NB Power

    Jennifer Grossl, Communications Manager, Platte-Clay Electric Cooperative

    4:30 p.m. :: Conference Concludes

    Workshop

    Costs of Generation Services Supporting Retail Markets

    Tuesday, March 29, 2022 : Central Time

    Overview

    This session provides a definition of generation services and connects wholesale pricing of these services to current and prospective retail rate designs. The workshop will compare traditional means of generation cost recovery at retail with innovative rates that allow retail prices to reflect wholesale market circumstances. A key aspect of the review will be concepts of avoided cost that have been used in the past to value energy efficiency and that now value energy sold back to the grid by customers or purchased under non-firm pricing or dynamic pricing rate designs. The workshop will enable participants to participate more fully in the presentations of industry practitioners.

    Learning Outcomes

    • Discuss emerging retail pricing challenges for cooperatives
    • Acquire an understanding of generation services and the costs associated
    • Explore the methods for valuation of these services
    • Understand the elements of avoided cost estimation for use in retail pricing
    • Review the challenges of having retail rates recover fixed costs and provide efficient price signals to customers regarding EV charging, distributed energy resource and storage device optimization

     

    Agenda

    8:45 – 9:00 a.m.
    Log In

    9:00 a.m. – 12:00 p.m.
    Workshop Timing

     

    9:00 – 9:15 a.m. :: Opening Announcements

    Emerging Retail Pricing Challenges for Distribution Cooperatives

    • Cost themes for new retail services (electric vehicle charging, distributed resource buy/sell pricing, electric storage pricing).
    • Connection to existing pricing problems (DSM credits and interruptible/curtailable pricing).
    • Connection to pricing of power contracts.

    Cost of Generation Services

    • Structure of generation costs: energy, reliability services.
    • Markets for generation services: contract-path and unbundled regional markets
      • Auction-basis for determining near-term prices.
    • Appropriate cost basis for decision-making…it’s what’s on the margin that counts.
      • Getting at marginal costs, from full requirements contracts.

    Avoided Costs Supporting Retail Pricing

    • Types of avoided costs
    • Inclusion issues: short-run vs. long-run

    Retail Portfolio Development and Underlying G&T Costs

    • Managing efficient pricing of energy at the retail level with current supply contracts.
    • Managing traditional embedded cost recovery with marginal cost-based pricing needs.
    • Pricing to offer a portfolio of rate options to customers.

    12:00 p.m. :: Workshop Adjourns

     

    Workshop Instructors

    Bruce R. Chapman, Vice President, Christensen Associates Energy Consulting

    Mr. Chapman assists clients in the electricity and natural gas industries to improve their costing and pricing capabilities. Mr. Chapman advises clients in such areas of expertise as: cost-of-service analysis and rate design based upon both established regulatory and market-based principles; innovative rate design including demand response products, renewables pricing, fixed billing, and other market-based retail pricing products; load forecasting and load research analysis. Additionally, he has supervised the development of software required for the implementation and support of innovative retail products.


    Robert Camfield Senior Regulatory Consultant, Christensen Associates

    Robert Camfield is Senior Regulatory Consultant at Christensen Associates.  He has extensive experience in the energy industry and the economics of regulation, including resource decisions, regulatory governance and incentive plans, market restructuring, cost allocation, energy contracts, cost of capital, and performance benchmarking. Mr. Camfield has managed numerous projects involving wholesale and retail markets, including market restructuring in Central Europe.  He served as the program director for EEI’s Transmission and Wholesale Markets summer program from 1999 – 2008 and is credited with innovations related to web-based energy services, cost analysis, and two-part tariffs for transmission. Prior to joining Christensen Associates, he served as system economist for Southern Company and chief economist for New Hampshire Public Utilities Commission.


    Nick Crowley, Economist, Christensen Associates

    Nicholas Crowley, MS (University of Wisconsin–Madison) is an Economist. Mr. Crowley’s professional work is primarily with natural gas pipeline and electricity regulation, including wholesale and retail markets. For electricity, he has participated in numerous costing and pricing projects, which involve computational analytics and econometrics, performance-based ratemaking, marginal cost estimation, total factor productivity estimates, and load response with respect to efficient time-of-use tariff options within retail markets. Mr. Crowley’s analyses and study results have been summarized in major reports and formal studies filed with regulatory authorities in Canada and the U.S. Prior to joining CA Energy Consulting, Mr. Crowley was an economist with the Federal Energy Regulatory Commission, where his work experience was concentrated in natural gas pipeline regulation and assessment of electricity markets. Mr. Crowley was also involved in FERC’s performance-based regulation of oil pipeline rates.

    Speakers

    • Zach Anderson, CFO, Wolverine Power

    • Brian Burandt, VP of Power Supply and Business Development, Connexus Energy

    • Robert Camfield, Senior Regulatory Consultant, Christensen Associates

    • Bruce Chapman, Vice President, Christensen Associates

    • Keith Dennis, President, Beneficial Electrification League

    • Michael Enger, Director, Energy Market Operations, Austin Energy

    • Jennifer Grossl, Communications Manager, Platte-Clay Electric Cooperative

    • Allison Hamilton, Director Markets & Rates, NRECA

    • Duane Highley, CEO, Tri-State Generation and Transmission Association, Inc.

    • Jim Lamb, SVP, Central Electric Power Cooperative

    • George Porter, Director Rates Modernization, NB Power

    • Randy Reuscher, Lead Analyst, Utility Rates, Fort Collins Utility

    • David Stowe, Rate Analyst, CORE Electric Cooperative

    • Patricia Taylor, Senior Manager, Regulatory Policy and Business Programs, American Public Power Association (APPA)

    Online Delivery

    We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

    • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
    • You will receive a meeting invitation will include a link to join the meeting.
    • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
      • You will need to join the appropriate meeting at the appropriate time.
    • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
    • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

    Register

    Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

    Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

    If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

    Event Standard RateAttendees
    Single Seat - Rate Innovation for Cooperatives and Public PowerUS $ 1195.00
    Pack of 5 SeatsUS $ 4,780.00
    Pack of 10 SeatsUS $ 8,365.00
    Pack of 20 SeatsUS $ 14,340.00
    Call us at 303.770.8800 if you have any specific questions on the volume discounts
    * all other discounts do not apply to seat packs

    This event has the following workshops:

    Methodologies for Pricing Generation ServicesUS $ 495.00
    Pack of 5 SeatsUS $ 1980.00
    Pack of 10 SeatsUS $ 3465.00
    Pack of 20 SeatsUS $ 5940.00

    By registering I indicate I agree with EUCI's privacy policy and understand I may receive emailed reports, articles, event invitations and other information related to products and services from EUCI and any of our business partners. I understand I may unsubscribe at any time by clicking the link included in emails.

    Take advantage of these discounts!

    • Attend the Conference and workshop and pay US $ 1,595.00 per attendee (save US $ 95.00 each)

    Cancellation Policy

    Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before February 25, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

    Secured By:

    CEUs

    Credits

    AP_Logo

    EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

    EUCI is authorized by IACET to offer 1.0 CEUs for this conference and 0.3 CEUs for the workshop.

    Requirements for Successful Completion of Program

    Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

    Instructional Methods

    Case Studies, Panel Discussions and PowerPoint presentations


    Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

    Conference CPE Credits: 12.0
    Workshop CPE Credits: 3.5
    There is no prerequisite for this Conference.
    Program field of study: Specialized Knowledge
    Program Level: Beginner/Intermediate
    Delivery Method: Group-Live presented online due to COVID-19
    Advanced Preparation: None

    CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.

     

     

    Who Should Attend

    This conference was developed for:

    • Utility executives
    • Corporate communication professionals
    • Contact center management professionals
    • Attorneys
    • Regulatory affairs managers
    • Pricing and load research managers
    • Customer representatives and organizations
    • Cost of service analysts
    • Financial analysts
    • Rate design, product development and customer strategy professionals