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

Utility Financial Basics
October 5-6, 2020 | Online :: Central Time

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Overview

Utilities are natural monopoly service providers and, therefore, subject to unique financial requirements and regulations. Unlike competitive service providers, tariff rates and cost recovery mechanisms are subject to unique principles and differing levels of regulatory oversight.  This introductory class provides a brief overview of the underlying financial concepts for utilities with a focus on Investor Owned Utilities.

Learning Objectives

The goal of this introductory course is to provide a working knowledge of the fundamentals of finance in a regulated utility environment that can be applied in the real world. The content will help to understand the concept of capital recovery, strategic planning, regulatory environment, and cost recovery mechanisms. 

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 0.9 CEUs for this event.

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

Course CPE Credits: 10.5
There is no prerequisite for this Course.
Program Level: Beginner/Intermediate
Delivery Methood: Group-Live
Advanced Preperation: 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.

 

Requirements for Successful Completion of Program

Participants must sign in/out each day and be in attendance for the entirety of the conference to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations, panel discussions and case studies will be used for this conference

Agenda

Monday, October 5, 2020 : Central Time

8:45 – 9:00 a.m. :: Login and Welcome

9:00 a.m. – 4:00 p.m. :: Course Timing

12:00 – 12:30 p.m. :: Lunch Break

Short breaks will be taken throughout the course


Course Introduction/ Background/Overview

  • Public Utility Concept Development
  • Industry Organization and Participants
  • Types of Ownership
  • Introduction to Regulations
  • Regulatory Oversight by Sector and Participant
  • Price Regulation of a Monopolistic Enterprise

Essential Elements of the Utility Business

  • Strategic Investment
  • Investment Prudency
  • Timely Recovery

Introduction to the Utility Finance and Ratemaking

  • Ratemaking Process
  • Recovery Mechanisms

Investment/Cost Recovery

  • Base Rates
  • Formula Rates
  • Adjustment Clauses
  • Trackers
  • Riders
  • Deferrals
  • Decoupling

Financial Elements of the Utility Business

  • The Key Financial Elements
    • Rate Base
    • Income Statement
    • Working Capital
    • Regulatory Asset/Liabilities
    • Revenue Requirement
    • Return on Equity
  • GAAP for Utility
  • FERC Uniform System of Accounts
  • Utility Reporting Requirements

Utility Major Financial Components

  • Utility PP&E Cycle
  • Capitalization Policy
  • Continuing Property Records
  • Depreciation/Retirement/Regulatory Assets
  • Tax and Deferred
  • Costs of Using and Maintaining the Utility Plant
  • Salaries and Wages
  • Property and Other Taxes
  • Other Expenses
  • Disallowance of Certain Expenses

Tuesday, October 6, 2020 : Central Time

8:45 – 9:00 a.m. :: Login and Welcome

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

Short breaks will be taken throughout the course


The Cost of Service and Rate Design

  • Rate Base
  • Income Statement
  • Cash Working Capital
  • ROE
  • Capital Structure
  • Test Period and Methodology
  • Cost of Service and Revenue Requirement
  • Principles of Rate Design

Case Study

  • Review Public Service of Colorado Proceeding No. 19AL-0268E
  • Rate Review Filing package
  • Timeline/Procedural Schedule
  • Cost of Service Study
  • Rate Review Outcome

Recap


Conclusion

Instructor

Svetlana V. Atoyan, Regulatory and Finance Manager, Black Hills Energy

Svetlana is a Regulatory and Finance Manager at Black Hills Energy. She graduated from Moscow State University of Technology and Management of K.G. Razumovsky with a Bachelor’s degree in Economics and a Master’s degree in Business Administration. She also received a Master of Science in Accounting from the University of Colorado Denver. Her areas of expertise include capital investments and recovery, finance, cost of service modeling and design, various cost allocation and recovery methods, and regulatory environment management and policy. She started a career in the utility industry in 2008 at Xcel Energy Inc. Since then she was involved in various aspects of gas and electric energy sectors. Most of her career at Xcel Energy she spent in the capital asset department, where she was exposed to all phases of capital construction from budgeting to recovery. Svetlana was a significant driver for moving the company to use a standardized system in the cost of service modeling and design.  She joined Black hills Energy in May of 2020. Currently, she specializes in regulatory management of the gas business in Colorado. Svetlana is passionate about children’s safety, development, and education and serves as President of the Foundation at Cherry Creek Academy.

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.

  • 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: 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

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