Utility Finance Basics

Utility Finance Basics

December 12-13, 2022 | Online :: Central Time

“The Electric Utility Financial Basics course was a perfect primer and an excellent introduction to core concepts.” Federal Policy Manager, Duke Energy

“I strongly suggest operations and field personnel attend this course! It will make you rethink how you do your job on a daily basis.” UG/Aerial Lines Supervisor, PECO

“This was a great introduction to utility financials.” VP Business Development, Osmose Utilities Services

“Thoroughly informative and engaging. Very glad I attended.” Solutions Consultant, Osmose

Utilities are natural monopoly service providers; however, they are subject to distinctive economic and regulatory requirements. Unique from competitive service providers, utility tariff rates and cost recovery mechanisms are subject to specific principles and differing levels of regulatory oversight.  This introductory class introduces the underlying financial concepts for both gas and electric power utilities (some elements will not apply to municipalities and cooperatives).

The goal of EUCI’s Utility Finance Basics 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 a concept of capital recovery, strategic planning, regulatory environment, and cost recovery mechanisms. 

Learning Objectives

  • Identify and describe utility financial basic concepts like types of ownership, regulation, and the fundamentals of both Electric and Gas Power Markets
  • Discuss financial strategies for utility business success
  • Analyze the utility ratemaking process, including cost of service and rate design
  • Examine utility investment strategies and cost recovery mechanisms in practice
  • Define the key financial components of the electric utility business
  • Introduce important utility financial policies and reporting requirements
  • Assess Capital Planning Considerations
  • Study special circumstance situations in utility finance like weather events and the impact of major liabilities

Agenda

Monday, December 12, 2022 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:00 – 12:30 p.m.
Lunch Break

9:00 a.m. – 4:00 p.m.
Course Timing

Short breaks will be taken throughout the course

Course Introduction: Background and Overview of Utility Finance

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

Essential Financial Strategies of the Utility Business

  • Strategic Investment
  • Investment Prudency
  • Timely Recovery

Utility Finance and Ratemaking

  • Ratemaking Process
  • Recovery Mechanisms

Utility Investment and Cost Recovery

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

Financial Components 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

Major Utility Financial Policies and Reporting  

  • Utility PP&E Cycle
  • Capitalization Policy
  • Continuing Property Records
  • Depreciation/Retirement/Regulatory Assets
  • Tax and Deferred
  • ITCs and PTCs
  • RECs
  • Costs of Using and Maintaining the Utility Plant
  • Salaries and Wages
  • Property and Other Taxes
  • Regulatory Asset/Liability Accounting
  • Other Expenses
  • Disallowance of Certain Expenses
  • Inflation Reduction Act

 

Tuesday, December 13, 2022 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:00 p.m.
Course Timing

Short breaks will be taken throughout the course

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

Electric and Gas Power Markets

  • PPAs with Power Providers
  • Day-Ahead and Real-Time Markets
  • Hedging & Weather
  • Case Study: Texas 2021 Winter Storm

Capital Planning Considerations

  • Joint Ownership
  • LCOE & NPV
  • Price Impact

A Year in the Utility Finance Department

  • Monthly, Quarterly, and Yearly Accounting Cycle
  • Budgeting & Forecasting
  • Strategic Planning
  • Rate Case?
  • Supply Chain and AP/AR
  • Treasury
  • SEC Reporting

Major Events and Special Situations in Utility Finance

  • Major Weather Events
  • Impact of Major Liabilities
  • Case Study: PG&E Bankruptcy
  • Case Study: Enron

Recap and Course Conclusion

Instructor

Ben Rosenberg, Solutions Architect – Financial Forecasting Programs, NextEra Energy Transmission and Florida Power & Light

Ben Rosenberg has worked with over a dozen US electric and gas utilities during his career. He currently serves as a solutions architect with NextEra Energy Resources, supporting the financial forecasting programs at NextEra Energy Transmission and Florida Power & Light. Prior to working at NextEra, Ben was the Senior Financial Forecast Analyst at Portland General Electric. Previously he worked as a consultant at Utilities International, leading projects implementing various financial forecasting programs and solutions.

Prior to working in the utilities industry, Ben held positions at the medical record software company Epic as an implementation consultant and the alternative investment fund Aurora Investment Management in the investment research team. He holds an MBA in Finance from the University of Notre Dame and a bachelor’s in science in Economics from DePaul University.

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.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • 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

REGISTER NOW FOR THIS EVENT:

Utility Finance Basics

December 12-13, 2022 | Online
Individual attendee(s) - $ 1195.00 each

Volume pricing also available

Individual attendee tickets can be mixed with ticket packs for complete flexibility

Pack of 5 attendees - $ 4,780.00 (20% discount)
Pack of 10 attendees - $ 8,365.00 (30% discount)
Pack of 20 attendees - $ 14,340.00 (40% discount)

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 November 11, 2022 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

CEUs

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

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 field of study: Specialized Knowledge
Program Level: Basic
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. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

Requirements for Successful Completion of Program

Participants must log in 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 course

Who Should Attend

  • Junior or siloed finance department employees
  • Aspiring finance employees of utilities
  • Other employees of utilities looking to gain more of a finance education for utilities (e.g., finance support staff in IT, long-term planning, or elsewhere)
  • Consultants in the utility industry looking to broaden their finance knowledge

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