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

FERC Transmission Ratemaking
November 12-13, 2020 | Online :: Central Time

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Overview

Investment analysts have signaled in recent years a preference for electric utility investment in rate regulated activities, including transmission and distribution. Meanwhile, FERC’s Order No. 1000 reforms sought to create new opportunities for utilities and other developers to compete for regionally planned transmission projects. FERC’s policies on ratemaking for transmission service have been in flux, and challenges to utilities’ return on equity are now commonplace, placing a premium on understanding how utilities subject to FERC’s jurisdiction recover their transmission cost of service.  

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 such as ROE and tax reform. Attendees will return to their organizations ready to participate and add value in any initiative related to FERC transmission ratemaking.   

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

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 1.0 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. 

Agenda

Thursday, November 12, 2020 : Central Time

8:45 – 9:00 a.m. :: Log In

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

12:30 – 1:15 p.m. :: Lunch Break


Introduction to FERC’s Regulation of Electric Utilities

    1. Part II of the Federal Power Act: Regulation of Wholesale Sales and Transmission in Interstate Commerce
      1. FPA Section 205: Utility Rate Filings
      2. FPA Section 206: Third Party Complaints and FERC Investigations
    2. Rate Review Process
      1. Administrative Process for Rate Filings
      2. Standards for Ratemaking
    3. Landmark Rulemakings: Transmission
      1. Order No. 888: Mandatory Open Access and the pro forma OATT
      2. Order No. 2000: Regional Transmission Organizations
      3. Order No. 679: Incentive Rate Treatments for Transmission
      4. Order No. 890: Refinements of the pro forma OATT
      5. 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

Friday, November 13, 2020 : Central Time

8:45 – 9:00 a.m. :: Log In

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


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 Nos. 569 and 569-A 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

Instructors

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 a member 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, Troutman Pepper Hamilton Sanders LLP

Kelsey Bagot’s practice focuses on representing electric and natural gas utilities in regulatory and rate case litigation proceedings before FERC under Sections 205 and 206 of the Federal Power Act and Sections 4 and 5 of the Natural Gas 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. Previously, Kelsey was a Trial Attorney at FERC, where she represented the Office of Administrative Litigation in settlement and administrative hearings concerning complex electric, natural gas, and oil pipeline matters. 


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

Jim Martin has 20 years of experience at American Electric Power in Columbus, OH working in the Accounting, Budgeting, and Regulatory departments. He has served as a cost of service witness in retail and FERC rate proceedings. He has prepared 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 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. 

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.

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
Single Connection - FERC Transmission RatemakingUS $ 1195.00
Pack of 5 connectionsUS $ 4,780.00
Pack of 10 ConnectionsUS $ 8,365.00
Pack of 20 ConnectionsUS $ 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 license packs

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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 October 09, 2020 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

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