Canadian Rate Design Symposium
April 17-18, 2018
Vancouver, BC

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Overview

Canadian utilities of all stripes are experiencing a range of pricing challenges in an environment of slowed sales growth and rising utilization of distributed and renewable generation. Traditional rate designs have difficulty meeting several challenges. Among small customers, distributed generation creates a difficult balancing act between revenue recovery and efficient pricing. Among large customers, possible excess capacity is creating an opportunity for relatively low-cost incremental sales. Ratemaking generally is faced with seemingly increasingly difficult problems in achieving the many goals of successful rate design.

This Canadian Rate Design symposium is intended to allow industry professionals to share their current ratemaking challenges and responses to them with their colleagues, and to explore innovative rate design options to meet those challenges. Staff from municipal, privately owned, and Crown corporation utilities will be able to review ideas informally with regulatory staff and other industry stakeholders, enhancing their shared understanding of current pricing and rate structure issues.

Learning Outcomes

  • Discuss the rate design challenges of accommodating distributed energy
  • Explain why it is important for providers to update their rates because of increases in advanced metering capability, customer sophistication, and more.
  • Discuss issues that utilities can expect to encounter with residential demand charges
  • Explain why there needs to be a suite of ratemaking options for large customers
  • Hear regulatory perspectives on rate design issues
  • Discuss the potential unintended consequences of certain rate designs
  • Discuss the pricing challenges that can arise in serving innovative customers

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.1 CEUs for this conference and 0.3 CEUs for the workshop.

 

Requirements for Successful Completion of Program

Participants must sign in/out 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

Agenda

Tuesday, April 17, 2018

12:30 – 1:00 p.m. :: Registration

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


1:15 – 1:45 p.m. :: Welcome Address/Commissioners Perspective

On behalf of the British Columbia Utilities Commission, Chairman Morton will welcome conference attendees to the great city of Vancouver and provide a regulatory perspective on rate design issues with respect to addressing emerging issues such as:

  • Distributed generation
  • Dynamic pricing or conservation
  • Evolving regulatory concerns

David Morton, Chairman, British Columbia Utilities Commission

1:45 – 5:15 p.m. :: Session I: Residential Rate Design

3:00 – 3:15 p.m. :: Networking Break


Session I Overview

Residential rates have typically not been very effective at reflecting costs, with the collection of revenues via simple rate structures taking priority. They should be designed to reflect costs, to promote efficiency in the use of electricity and equity across customers.  With increases in advanced metering capability, customer sophistication, and access to supply alternatives such as distributed generation, it is important for providers to update their rates. Residential rates may be designed to accomplish a range of these advancements. This session will review how Canadian utilities are meeting these challenges and the alternatives that are being explored.


Considerations for Residential Demand Charges: Customer Acceptance and Understanding

Gary Newcombe, VP, Government & Regulatory Affairs, Canada, Direct Energy


Overhauling Residential Rates at Arizona Public Service

Leland Snook, Director Rates and Rate Strategy, Arizona Public Service


Are TOU Rates a Substitute for Demand Charges for Net Metered Customers?

Daniel G. Hansen, Ph.D., Vice President, Christensen Associates Energy Consulting


Residential Rate Design in Ontario – Policy Considerations

Greg Van Dusen, Director, Regulatory Affairs, Hydro Ottawa


Panel Discussion: Residential Rate Design Recap

This panel discussion will allow symposium attendees to ask specific questions of the presenters for discussion related to the residential rate design session.

Gary Newcombe, VP, Government & Regulatory Affairs, Canada, Direct Energy

Daniel G. Hansen, Ph.D., Vice President, Christensen Associates Energy Consulting

Greg Van Dusen, Director, Regulatory Affairs, Hydro Ottawa

Leland Snook, Director Rates and Rate Strategy, Arizona Public Service


Wednesday, April 18, 2018

8:00 – 8:30 a.m. :: Continental Breakfast

8:30 a.m. – 11:45 a.m. :: Session II: Rate Design for Large Customers

10:00 – 10:15 a.m. :: Networking Break


Session II Overview

Large customers at utilities pose several ratemaking problems. First, usage variability by large customers at all utilities potentially challenge system stability or capacity. Second, large customers in Canada can be at remote locations rather than amid a meshed network, increasing grid management challenges. Third, large new customers present utilities with the issue as to whether new customers should enjoy the traditionally low pricing of existing customers or be charged for service at prices that reflect the costs of incremental service. There needs to be a suite of ratemaking options for large customers, it can’t just be one for all. This session will review these issues and explore current and possible approaches to large-customer pricing.


Advanced Rate Options for Industrial Customers in Minnesota

Marcia Podratz, Director of Rates, Minnesota Power


Attracting and Retaining Large-Customer Business

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


BC Hydro’s Innovative Industrial Rate

David Keir, Manager Transmission Rates, BC Hydro


Panel Discussion: Large Customer Rate Design Recap

This panel discussion will allow symposium attendees to ask specific questions of the presenters for discussion related to the large customer rate design session

Marcia Podratz, Director of Rates, Minnesota Power

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

David Keir, Manager Transmission Rates, BC Hydro

11:45 a.m. – 12:45 p.m. :: Group Luncheon


12:45 – 4:00 p.m. :: Session III: Alternative Ratemaking Initiatives

2:30 – 2:45 p.m. :: Networking Break


Session III Overview

Designing rates that properly value and enable a high penetration of alternative generation sources to reduce greenhouse gas admission — while recognizing the interests of utility shareholders and non-self-generating customers — is a challenge for utilities throughout North America. This session will be devoted to topics not fully covered in Sessions I and II, focusing on pricing challenges that can arise in serving innovative customers. These challenges include distributed energy resources (DER), electric vehicles, and rate design complications for distribution-only utilities. Session III may also make time for further review of controversy that arises during Sessions I and II. A panel discussion reviewing innovative strategies will close the symposium.


Fostering Customer Choice and Control: Piloting new commodity price plans in Ontario

Ceiran Bishop, Manager, Strategic Policy, Ontario Energy Board


Rate Design: Adaptable Utilities Meeting the Needs of Innovative Customers

Michael Zimmer, Rates & Regulatory Manager, City of Lethbridge


FortisBC’s Current Rate Design Processes – Gas and Electric

Atul Toky, Manager, Rate Design and Tariffs, FortisBC Energy Inc.

Corey Sinclair, Manager, Regulatory Affairs, FortisBC Inc.


Panel Discussion: Alternative Ratemaking Initiatives

This panel discussion will allow symposium attendees to ask specific questions of the presenters for discussion related to the alternative ratemaking session.

Michael Zimmer, Rates & Regulatory Manager, City of Lethbridge

Ceiran Bishop, Manager, Strategic Policy, Ontario Energy Board

Corey Sinclair, Manager, Regulatory Affairs, FortisBC Inc.

4:00 p.m. :: Symposium Concludes

Workshop

Basics of Retail Pricing: Traditional and Innovative

Tuesday, April 17, 2018

8:00 – 8:30 a.m. :: Registration & Continental Breakfast

8:30 a.m. – 11:45 a.m. :: Workshop Timing

Overview

This workshop is for those who would like to acquire the costing and pricing underpinnings of rate design sufficient to enable them to participate with confidence in the Rate Design Symposium. Analyzing how to develop rates that support distributed generation and electric vehicles, that enable demand response to tight capacity situations, or, alternatively, that facilitate economic development, can benefit from an understanding of how utilities develop costs and then translate them into retail rate structures. For those new to rate design or who work in areas that would benefit from a better understanding of ratemaking, this workshop will provide participants with the basis for a productive symposium and more informed work upon returning home.

Learning Outcomes

  • Acquire the basic tools of costing and pricing to be able to participate in the symposium
  • Review the current pricing structures that support distributed generation, and their problems
  • Discuss the static and dynamic rate structures that serve most business customers today
  • Discuss the basics of other pricing challenges likely to emerge in the symposium

Agenda

  1. Overview of current challenges: what’s so difficult or controversial?
  2. The traditional cost underpinnings: embedded cost of service
  3. The innovative underpinnings: marginal cost of service
  4. Traditional rate structures: taxonomy and challenges
  5. Innovative rate structures: dynamic pricing and the modern rate portfolio
  6. Rates on the fringe: serving niche customers

Instructor

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

Mr. Chapman is a Vice President at Christensen Associates Energy Consulting. He 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.

Speakers

Ceiran Bishop, Manager, Strategic Policy, Ontario Energy Board

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

Greg Van Dusen, Director, Regulatory Affairs, Hydro Ottawa

Daniel G. Hansen, Ph.D., Vice President, Christensen Associates Energy Consulting

David Keir, Manager Transmission Rates, BC Hydro

David Morton, Chairman, British Columbia Utilities Commission

Gary Newcombe, VP, Government & Regulatory Affairs, Canada, Direct Energy

Marcia Podratz, Director of Rates, Minnesota Power

Leland Snook, Director Rates and Rate Strategy, Arizona Public Service

Michael Zimmer, Rates & Regulatory Manager, City of Lethbridge

Location

Executive Airport Plaza Hotel Richmond
7311 Westminster Hwy
Richmond, BC V6X 1A3

To reserve your room, please call 604-278-5555 or book online here.
Please indicate that you are with the EUCI group to receive the group rate.

Room Rate:

The room rate is $159.00 single or double plus applicable taxes.

Room Block Dates:

A room block has been reserved for the nights of April 16-17, 2018.

Rate Available Until:

Make your reservations prior to April 1, 2018. There are a limited number of rooms available at the conference rate. Please make your reservations early.

Register

Event Standard RateAttendees
Proceedings package $ CAD 395.00

Host Utility