Utility Cost of Capital
December 5-6, 2023 | Online :: Central Time
The EUCI Utility Cost of Capital course aims to equip participants with essential knowledge and competencies to navigate the intricate world of regulated utilities’ capital markets and accurately determine the cost of capital—an indispensable component of effective cost-based ratemaking. Throughout the course, participants will delve into the capital markets, exploring various pathways that regulated utilities can employ to estimate the cost of capital, drawing on the best practices used by U.S. utility regulators.
By mastering financial concepts, relationships, and models, participants will gain invaluable insights into how utilities’ authorized rate of return is established and how it influences critical decisions related to capital projects. Join the course to elevate your understanding of utility cost of capital to enhance decision-making and overall performance within your organization.
- Analyze the key elements contributing to the cost of capital and employ various methods to calculate it accurately
- Differentiate between the components of cost of debt and cost of equity, and evaluate the models utilized for estimating these costs
- Evaluate the concept of capital structure and its profound effects on the cost of capital for regulated utilities
- Navigate through the utilities’ ratemaking process and assess the downstream impacts of capital investments on the overall operations
- Interpret the utility business model, comprehend revenue requirements, rate of return, and rate base, and their significance in financial decision-making
- Discuss advanced knowledge, skills, and competencies in corporate finance, specifically tailored for utilities and their unique financial dynamics
Tuesday, December 5, 2023 : Central Time
8:45 – 9:00 a.m.
Log In and Welcome
12:00 – 12:30 p.m.
9:00 a.m. – 4:00 p.m.
Utility Ratemaking Process
- Intro to Utilities
- Utilities Stakeholders
- Utilities Service Delivery
- Utilities Regulations
- Regulatory Proceedings
Utility Revenue Model
- Utility Rates
- Revenue Requirement
- Rate Base
- Return on Rate Base
- Under/Over Collection/Balancing Accounts
Utility Cost of Capital
- Cost of Capital Overview
- Capital Structure
- Capital Markets Overview
- Cost of Debt
- Cost of Equity
- Models for Estimating Cost of Equity
- Implications on Capital Budgeting
- Present Value of Revenue Requirement (PVRR)
Wednesday, December 6, 2023 : Central Time
8:45 – 9:00 a.m.
9:00 a.m. – 12:00 p.m.
Cost of Capital in Regulatory Proceedings
- Regulatory Standards
- Regulatory Proceeding
- Determination of Authorized Rate of Return
- Implication on Capital Projects Decisions
Hatem Kateb, Senior Finance Project Manager, Southern California Edison (SCE)
Hatem Kateb is a finance professional with 16 years of experience in corporate finance and business operations. He currently provides financial leadership to a $2B portfolio of capital investments and operational activities at Southern California Edison; one of the world’s largest investor-owned utilities. Prior to SCE, he held several finance leadership roles at leading organizations including Vodafone, Johnson & Johnson, and Port Logistics. Hatem’s academic credentials include an MBA from Pepperdine University, Operations Management Certification from the Wharton School of Business, and a BS in Accounting & Finance from Cairo University.
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.
- Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
- You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
- 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
If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event
REGISTER NOW FOR THIS EVENT:
Utility Cost of Capital
December 5-6, 2023 | Online
|Individual attendee(s) - $ 1295.00 each|
Volume pricing also available
Individual attendee tickets can be mixed with ticket packs for complete flexibility
|Pack of 5 attendees - $ 5,180.00 (20% discount)|
|Pack of 10 attendees - $ 9,065.00 (30% discount)|
|Pack of 20 attendees - $ 15,540.00 (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 03, 2023 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
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 1.0 CEUs for this event
Requirements for Successful Completion of Program
Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.
Case studies and PowerPoint presentations will be used.
Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.
Course CPE Credits: 11.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None
EUCI 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
Who Should Attend
The EUCI Utility Cost of Capital course will benefit professionals who are involved in financial, regulatory, and strategic decision-making within electric utilities. Attending the Utility Cost of Capital course would enhance their understanding of cost-based ratemaking, capital markets, and cost of capital estimation, enabling them to make well-informed and data-driven decisions for their organizations.
- Utility Financial Analyst
- Rate Analyst
- Regulatory Affairs Specialist
- Utility Economist
- Capital Planning Manager
- Investment Strategist
- Financial Controller
- Director of Finance and Accounting – Electric Utility
- Energy Economist
- Treasury Manager
- Cost Estimator
- Regulatory Compliance Officer
- Energy Investment Analyst
- Chief Financial Officer (CFO) – Electric Utility
- Project Finance Manager
- Utility Risk Management Analyst
- Utility Asset Manager
- Portfolio Manager – Electric Utility
- Utility Regulatory Consultant