By - Jon Brown

FERC Transmission Ratemaking
April 8-9, 2019 | Chicago, IL

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With margins in wholesale power markets shrinking in response to low natural gas prices, investment analysts have in recent years signaled a preference for electric utility investment in rate regulated activities, including transmission and distribution.  Meanwhile, FERC’s Order No. 1000 reforms created new opportunities for utilities and developers to build competitive regional transmission projects.  These developments, combined with a recent proliferation of challenges to address utilities’ return on equity and income tax recovery in transmission rates, have placed a premium on understanding how utilities subject to FERC’s jurisdiction recover their investment in transmission facilities.    

This course will provide attendees with a review of FERC’s regulation of transmission-owning utilities and a working knowledge of cost-of-service rates for transmission.  Attendees will learn how to construct a revenue requirement and calculate transmission rates from utility books and records using FERC’s cost of service statements or a formula rate, and will learn about the latest developments in FERC ratemaking policy and precedent on hot button issues like ROE and tax reform.  Attendees will return to their organizations ready to participate and add value in any initiative related to FERC transmission ratemaking.   

For attendees to participate in group exercises and follow along with instruction, a laptop computer with Microsoft Excel 2008 or later is requested.


Learning Outcomes 

  • Gain working knowledge of FERC’s regulation of electric utilities under Part II of the Federal Power Act 
  • Gain familiarity with FERC’s Uniform System of Accounts 
  • Discuss how to construct a transmission revenue requirement and transmission rates based on utility accounting records, including rate base, rate of return, depreciation, expenses, and taxes 
  • Identify how to populate and true-up a formula rate template 
  • Discuss how to estimate the return on equity using FERC’s evolving methodology  
  • Review recent FERC ratemaking developments in areas such as ROE, income taxes, and incentive rates  



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 event.


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 

PowerPoint presentations will be used. 


Monday, April 8, 2019

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

12:00 – 1:00 p.m. :: Group Luncheon 

8:30 – 5:00 p.m. :: Course Timing

Tuesday, April 9, 2019 

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

8:30 a.m. – 12:00 p.m. :: Course Timing 

Introduction to FERC’s Regulation of Electric Utilities 

  • Part II of the Federal Power Act: Regulation of Wholesale Sales and Transmission in Interstate Commerce
    • FPA Section 205: Utility Rate Filings
    • FPA Section 206: Third Party Complaints and FERC Investigations
  • Rate Review Process
    • Administrative Process for Rate Filings
    • Standards for Ratemaking
  • Landmark Rulemakings: Transmission
    • Order No. 888: Mandatory Open Access and the pro forma OATT
    • Order No. 2000: Regional Transmission Organizations
    • Order No. 679: Incentive Rate Treatments for Transmission
    • Order No. 890: Refinements of the pro forma OATT
    • Order No. 1000: Regional and Interregional Transmission Planning

Introduction to Cost of Service Rates 

  • Uniform System of Accounts (“USofA”)
    • Purpose of USofA
    • USofA Roadmap
  • Step through the development of a revenue requirement and rate design by reviewing key components of cost of service rates
    • Rate Base
    • Rate of Return, including ROE
    • Depreciation
    • O&M and A&G
    • Taxes
    • Billing determinants
  • Group Exercise: Build a Transmission Rate

Formula Rates 

  • History of Formula Rates for FERC-jurisdictional services
  • Stated rates v. formula rates – pros and cons
  • In Depth Review of Sample Formula Rate:
    • Populating values from FERC Form No. 1
    • Fixed Values:
      • ROE
      • Depreciation Rates
      • PBOPs
  • Annual Update Process
    • Calculation of True-Up Adjustment
    • Projected costs
    • Discovery and challenge procedures
    • FERC informational filing

Current Issues 

  • ROE: Opinion No. 531, Emera Maine remand, and where we go from here
  • Income Taxes: Congressional tax reform and impacts on utility rates
  • Incentive Rates
  • Use of formula rates by non-jurisdictional municipal and cooperative utilities in RTO/ISO regions
  • Use of formula rates by competitive transmission developers for competitive Order No. 1000 projects

Course Evaluation 


Justin P. Moeller, Senior FERC Counsel, NextEra Energy, Inc.

Justin Moeller is Senior FERC Counsel at NextEra Energy in Washington, DC. Justin has extensive experience representing utilities in cost-of-service rate proceedings before FERC, including transmission formula rate cases. Since 2012, Justin has participated in more than a dozen different transmission formula rate cases. Justin has also assisted in responding to complaints involving formula rate issues and in responding to issues arising during the formula rate annual update process. He also has experience developing and prosecuting stated rates for transmission and ancillary services, including wind integration charges.

Douglas W. Smith, Partner, Van Ness Feldman, LLP

Doug Smith is a partner in the Washington, DC office of Van Ness Feldman, where he is the Coordinator of the firm’s Electricity Practice. Doug has an active practice representing electric utilities and other energy sector clients before the Federal Energy Regulatory Commission (FERC). He advises clients on regulatory policy concerning the electricity sector, including the rules establishing the framework for transmission development, access and ratemaking. Following Order No. 1000, Doug has represented a number of transmission developers located throughout the country in preparing, filing and prosecuting transmission formula rate cases. He has also represented transmission developers in seeking incentive rate treatments under Order No. 679. Prior to joining Van Ness Feldman, Doug served as General Counsel to the FERC, and as Deputy General Counsel for Energy Policy at the U.S. Department of Energy.

Kelsey A. Bagot, Associate, Van Ness Feldman, LLP

Kelsey Bagot’s practice focuses on representing electric and natural gas utilities in regulatory and rate case litigation proceedings before FERC under Section 4 of the Natural Gas Act and Sections 205 and 206 of the Federal Power Act. In particular, Kelsey has extensive experience in representing investor-owned and municipal utilities in cost-of service rate proceedings before FERC, including transmission rate cases. Prior to joining Van Ness Feldman, Kelsey was a Trial Attorney at FERC, where she represented the Office of Administrative Litigation in settlement and hearing in administrative litigation concerning complex electric, natural gas, and oil pipeline matters.

Jim Martin, Regulatory Case Manager, American Electric Power Co.

Jim Martin has 18 years of experience at American Electric Power in Columbus, Ohio working in the Accounting, Budgeting and Regulatory departments. He has served as a cost of service witness in retail and FERC rate proceedings. He prepares annual projections and true-up updates for both FERC jurisdictional wholesale energy contract customers and FERC jurisdictional transmission cost of service templates for 21 AEP subsidiaries and joint ventures located in both the PJM and SPP regions. Recently Jim has participated in regulatory proceedings at FERC to convert AEP’s PJM and SPP transmission formula rates to fully projected cost of service and to incorporate the effects of the 2017 federal tax reform.



Springhill Suites Chicago/O’Hare

8101 W Higgins Rd

Chicago, IL 60631

Reserve your room:

please call 1-773-867-0000

Click here to book online.

Room Block Reserved For:

Nights of April 7 – 8, 2019

Room rate through EUCI:

$119.00 single or double plus applicable taxes
Make your reservations prior to March 18, 2019.

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