By - Jon Brown

Electric Utility Financial Basics: An Introductory Primer
December 11-12, 2019 | Houston, TX

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Electric utilities are monopoly service providers and therefore subject to unique financial requirements and regulations. Unlike competitive service providers, rates charged and cost recovery mechanisms are subject to unique principles and differing levels of regulatory oversight ranging from self-regulation in the case of electric cooperatives to local board or council regulation in the case of municipals, to state commission price regulation in the case of Investor Owned Utilities (IOUs). This introductory class provides a brief overview of the American power industry evolution and explains the principles of monopolistic price regulation (i.e., cost of service), the various types of electric utilities, and financial basis for each. Explanations of the basic financial concepts for electric utilities will be provided with a focus on Investor Owned Utilities. 

Learning Outcomes

  • Discuss the regulatory evolution of the American power industry
  • Identify the need for price regulation of a monopolistic enterprise
  • Describe different regulatory regimes governing electric utilities
  • Examine different types of electric industry participants (Muni, Coops, Gencos, Discos, Transcos, IOUs, ISOs, RTOs)
  • Explain the basic elements of financial reports for an electric utility (IOU/Muni)
  • Define basic cost of service approach (IOU, Muni)
  • Identify the concept of rate base, rate of return, and return on equity
  • Identify financial planning tools for electric utilities



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.

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

Course CPE Credits: 13.0
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, be in attendance for the entirety of the course

Instructional Methods

Power Point presentations and open discussion will be used


Wednesday, December 11, 2019

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

8:30 a.m. – 5:00 p.m. :: Course Timing

12:00 – 1:00 p.m. :: Group Luncheon


Evolution of the American Electric Power Industry

  • Background + History
  • Timeline of Key Regulations
  • Current Industry Organizations and Participants

Current Industry Organization and Participants

  • Genco
  • Trans co
  • Dis co

Price Regulations of a Monopolistic Enterprise

  • Basic Concepts
  • Rules for Price Setting
  • Regulatory Regimes and Industry Participants

Introduction to Electric Utility Finance and Ratemaking

  • Types of Ownership
  • Regulatory Oversight by Sector and Participant

Basic Financial Elements of the Electric Utility Business

  • FERC Uniform System of Accounts
  • FERC Form 1
  • Rate Base
    • Capital Assets
      • Allowance for Funds Used During Construction
      • Construction Work in Process
    • Regulatory Assets
    • Accumulated Depreciation
    • Working Capital
    • Deferred Taxes
    • Return of Rate Base
    • Revenue Requirement

Public Versus Private Utility Accounting Concepts

  • Depreciation
  • Debt Service
  • Franchise Fees/Taxes/Payments in Lieu of Taxes (PILOT)
  • Margins Versus Profit
  • Rate Base/Rate of Return
  • Enterprise Funds

Base Electric Utility (IOU/MUNI) Financials

  • Reports
    • Balance Sheet
    • Income Statement
    • Operating Budget
    • Capital Budget

How to Read Your Bill

Wrap Up and Adjourn

Thursday, December 12, 2019

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

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

Review of Day 1

How Electric Utility Financials Translate into Rates

  • Revenue Requirement
  • Capital Improvement Plan
  • Cost of Service
  • Rate Design

Financial Planning Tools

  • Financial Management Plan
  • Competitiveness with Surrounding Utilities
  • Examine Rate Design Impacts
  • Dynamic Dashboards

Wrap Up and Adjourn


Lisa M. Vedder, MPA, CIA, CCSA, Principal Consultant,  LM Vedder Consulting
Harvard University: Master in Public Administration
University of Wisconsin-Madison: B.S. Industrial Engineering

Ms. Vedder is a Principal Consultant at LM Vedder Consulting. She has over 25 years of experience in the utility industry with special emphasis on electric and natural gas industry restructuring in the U.S. Her career spans the electric, natural gas, solid waste, wastewater, water and telecommunications utility sectors. Her responsibilities include utility cost of service and rate design studies, strategic business planning, and organizational assessments.  Her areas of expertise include finance, regulatory policy, cost allocation, complex quantitative modeling, power markets, power supply contracts, and auditing. She specializes in regulatory treatment methodologies for costs associated with both regulated and competitive activities, fuels portfolios, bond financing, transmission rates and services, and the electric and natural gas sectors at the wholesale and retail levels.  She has served as an Independent Auditor to an IOU for large-scale third party solar and wind procurements and as a subject matter expert to the Provincial Auditor of Saskatchewan in an audit of a competitive power solicitation.  She was technical lead to the Joint Outreach Team for the Department of Energy’s Defining the Future of the Grid Initiative in 2012.  She served as Lead Auditor for an ISO 14001 Environmental Management System Consolidated Audit of a $245M state-of-the art wastewater treatment plant.  Ms. Vedder has conducted privatization and securitization analyses, negotiated complex deals, and mediated disputes. She has led workshops; prepared written testimony, white papers, and briefs; and submitted to the Federal Energy Regulatory Commission (FERC), various state regulatory agencies, and an international tribunal. She is a trained facilitator and studied leadership and change management at Harvard where her Methodological Areas of Concentration included Negotiation & Conflict Resolution and Regulation & Industry Analysis.

Ms. Vedder, a member of Tau Beta Pi and Alpha Pi Mu, was the Women’s Leadership Initiative Fellow for her class at Harvard. She is a Certified Internal Auditor and holds a Certification in Control Self-Assessment.


Hyatt Regency Houston

1200 Louisiana St.

Houston, TX 77002

Reserve your room:

please call 1-713-654-1234

click here to book online

Room Block Reserved For:

Nights of December 10 – 11, 2019

Room rate through EUCI:

$129.00 single or double plus applicable taxes
Make your reservations prior to November 19, 2019.



Event Standard RateAttendees

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