Serving the energy industry for over 30 years
By - Jon Brown

FERC Transmission Ratemaking
May 20-21, 2020 | Online :: Central Time

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This is an Online Course. In lieu of recent developments with COVID-19, for the health and safety of our speakers and attendees, we have decided to move many of our events to Online Courses.

The Federal Energy Regulatory Commission (FERC) has always maintained a significant presence in the electric industry, regulating the rates, terms, and conditions by which utilities provide wholesale transmission service. The electric industry’s transformation has expanded FERC’s traditional role as rate regulator. Against this backdrop, FERC is addressing the expansion of Regional Transmission Operators (RTOs) and changes to RTOs’ goals and strategies regarding transmission investment, the continued proliferation of new renewable energy sources connecting to the U.S. transmission grid, and rules governing wholesale market participation and interconnection of demand response, energy storage, and energy efficiency resources. FERC is also re-evaluating its policies towards return on equity levels and incentives for FERC jurisdictional transmission rates. Today, more than ever, having a thorough understanding of transmission rate setting is critical to the success of all interested stakeholders.

Attendees of this program will learn the fundamentals of federal transmission rate regulation and cost of service-based rate setting as applied today. They will explore how important FERC initiatives may impact transmission rates and service in the future. Attendees will also learn practical rate setting skills such as how to determine a transmission revenue requirement and how to establish transmission rates using commonly available data sources. Real world examples and dynamic interactive discussion of seminar topics will provide attendees with a keen appreciation for the nuances of transmission rate regulation.

Learning Outcomes  

  • Discuss the key statutes, regulations, and FERC orders that form the foundation governing transmission rates
  • Review how to prepare, defend, or oppose a transmission rate filing
  • Become familiar with the financial and operating data used to prepare a transmission cost of service and rate study
  • Assess and evaluate the differences between stated and formula rates
  • Review recent transmission rate setting FERC policy developments that can affect future transmission rate setting
  • Identify regional and market differences in process and application of transmission rate setting activities
  • Participate in a short rate-setting exercise that will test your transmission rate setting knowledge



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 

You must be logged in for the entire presentation and send in the evaluation after the online course is completed.

Instructional Methods 

PowerPoint presentations will be used. 


Wednesday, May 20, 2020

9:00 – 9:15 a.m. :: Login

9:15 a.m. – 4:30 p.m. :: Course Timing 

12:30 – 1:15 p.m. :: Lunch Break

Legal and Policy Introduction and Background

  • Legislative and Regulatory Framework for Electric Transmission Rate Setting
    • Overview and Purpose – Transmission as Natural Monopoly Regulation; The Regulatory Compact
    • Hope and Bluefield Decisions – Prudent Investments; Just and Reasonable Rates
  • Legislative Structure
    • Jurisdictional Divide Between Retail (States) and Wholesale (Federal)
    • FPA Section 205 ‐ Structure and Relevance to Rate Setting
    • FPA Section 206 ‐ Structure and Relevance to Rate Setting
    • Energy Policy Act 2005 ‐ FPA Section 219, Repeal of PUHCA 1935 With Expanded FERC Jurisdiction
  • FERC Regulatory History
    • Order 888/889/890 – Opened Transmission Markets
    • Order 2000 – Establishing ISO/RTO Framework
    • Order 679 – Transmission Incentives
    • Order 1000 (2011) – Competitive Transmission Planning
    • Orders 719 and 745 – Demand Response Wholesale Market Participation
    • Order 841 (2018) – Energy Storage Wholesale Market Participation

Rate Regulation Under the Federal Power Act (FPA)

  • FPA Structure and Filing Timelines/Considerations
    • FPA Section 205 Filings
    • FPA Section 206 Filings
    • Key Procedural and Legal Aspects to Each Type of Filing Including Burden of Proof
    • Filing Timelines and Process
    • Regulatory Strategy Considerations
  • Fundamental Components of a 205/206 Filing and Evidentiary Showing
    • Cost of Service and Revenue Requirements Study
    • Depreciation Study
    • Cost of Capital Study
    • Other Special Studies Such as Power Flow Analysis
    • Accompanying Expert Testimony
    • Review of Other Evidentiary Showing Requirements

Focus on Revenue Requirements and Cost of Service Development

  • Major Sources and Tools
    • Uniform System of Accounts – Purpose and Use
      • Review of Major Transmission Related Account Series
    • FERC Form 1 – Review and Introduction as Study Source
  • Revenue Requirements Formula
  • Cost of Service Study Components
    • Three step process: Functionalization, Classification and Allocation
      • Rate Base – 13‐Month Average Approach
        • Rate Base Special Topics
      • O&M and A&G
      • Depreciation
      • Taxes
    • Cost Allocation and Assignment Topics
      • FERC 7 Factor Test
      • General Plant, A&G, Working Capital, Other
      • Regional and Inter‐Regional Cost Allocation

Rate Design

  • Formula Rates
    • Transmission Formula Rate Template: Basis and Function
    • Inputs into Formula Rate – Uniform System of Accounts, FERC Form 1
    • Transmission Rate Protocols
      • 2014 Guidance Paper
      • Recent Precedent
    • Stated Rates
      • Approach and Theory
        • Test Year
        • Cost Allocation
      • Trade‐offs Between Using Stated vs Formula Rate Approach
      • Billing Parameters
        • 1 CP, 4 CP, 12 CP
        • Network Integration T Service (NITS), Point to Point Service (PTP)
        • Load Ratio Share Basis Use

Thursday, May 21, 2020 

8:45 – 9:00 a.m. :: Login

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

Current Issues

  • Issues
    • Recent ROE Decisions Pre‐Coakley, Post-Coakley
    • FERC Investigation into Transmission Incentives: Order 679, 2012 Policy Statement, 2019 Notice of Inquiry
    • Changes to Income Tax Allowance Policy
    • Update on Order 841 and How Energy Storage May Affect Transmission Market

Group Exercise

  • To Be Determined from the Following Options:
    • Mock Rate Development from Set of Financials and Billing Determinants
    • Mock Regulatory Strategy Exercise
    • Other


David DesLauriers, Vice President of Energy, Charles River Associates

David DesLauriers is Vice President of Energy at Charles River Associates. He specializes in electric retail and wholesale pricing, regulated interstate transmission pricing and wholesale electric market policy matters. He has advised numerous midstream energy utilities on rates and regulatory policy for the past 30 years. His areas of expertise include electric transmission cost of service and rate design, electric and gas distribution utility costing and pricing, wholesale electric market design policy and operational topics, Federal Energy Regulatory Commission (FERC) regulatory strategy & policy matters, regulatory due diligence (M&A) and compliance with FERC and NERC regulation. Mr. DesLauriers clients include RTOs/ISOs, transmission and distribution owning energy companies (regulated and non-regulated) and industry stakeholder groups involved in FERC and state regulatory policy. He recently joined CRA from Black & Veatch, where he was a director in that firm’s Management Consulting Division. 

Chris Devon, Director, Market Intelligence – West, Customized Energy Solutions

Chris joined CES in April 2020.  His area of focus is providing coverage on CAISO policy and regulatory matters in the West.  Prior to joining CES he was a lead and senior policy developer with CAISO.  In his role with CAISO, he has led numerous CAISO stakeholder initiatives and developed proposals to enhance and establish new CAISO policies.  His areas of expertise include resource adequacy, transmission cost recovery and emerging technologies. 

Before joining CAISO in 2015, Chris held a role as wholesale energy markets advisor to the Michigan Public Service Commission where he represented Michigan interests in the stakeholder processes of MISO and PJM Regional Transmission Organizations.  He obtained a BA in economics from Michigan State University.

Jason Gray, Partner, Duncan & Allen

Mr. Gray is a Partner with Duncan & Allen, a Washington, DC-based law firm whose practice concentrates on energy law and the regulation of public utilities.  Mr. Gray has over a decade of experience providing strategic advice and counsel to a wide range of clients in matters before the Federal Energy Regulatory Commission, state public utility commissions, and a variety of state courts. Mr. Gray has particular experience in utility-related litigation and evidentiary proceedings. He also regularly advises clients with respect to rulemaking proceedings, renewable energy policy, legislation, compliance and enforcement matters, stakeholder processes, formal and informal settlement negotiations, transactional matters, Regional Transmission Organization/Independent System Operator matters, and the development of energy projects. In addition, Mr. Gray frequently represents or advises clients with respect to appeals before the United States Court of Appeals for the District of Columbia Circuit and the United States Court of Appeals for the Ninth Circuit. 

Online Delivery

Our courses are designed to be the best possible use of your valuable time – get the information you need to improve your position in the market in an interactive, dynamic format.

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.

  • 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.


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

Event Standard RateAttendees

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