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Electric Cost-of-Service – Essential Concepts for a Changing Industry

July 20 - 21, 2026 Denver, CO EUCI

“It was a very engaging and insightful class. Scott and David were also very knowledgeable with tons of experience to draw upon.”

Utility Accountant, LADWP

“Excellent overview of the entire cost of service process for people new to topic or needing a refresher done by two excellent speakers.”

Budget & Rates Analyst, Great River Energy

“Thanks for covering so much and allowing me to apply newly learned concepts into exercises that were extremely practical.”

Budget Administrator, Anaheim Public Utilities
Read more testimonials

“They were very knowledgeable and gave lots of great info and examples. They made the data easy to understand. I’m very impressed.”

Utility Rate Analyst, City of Longmont

“Wonderful opportunity to learn the ins-and-outs of cost of service.”

Economist, Oregon PUC

“The worksheets in Excel are terrific!”

Financial Analyst-Competitive Transmission, MISO

“Great course for forecasting and load research professionals to see how projections and interval data by rate class impact COS results.”

Forecast Analyst Lead, Tampa Electric Co.

“Great course for someone with a year or so in the industry. Very informative, thank you!”

Sr. Accountant, Xcel Energy

“Extremely useful, Excel base examples.” 

Rate Analyst I, MGE

“This course is worth the time for anyone new to cost of service modeling and analysis.”

Administrator – COS, Tampa Electric Company

“The course content and speakers exceeded my expectations.”

Sr. Manager, Member Relations, Tri-State G&T

“Very dynamic and engaging speakers! I learned a lot that added relevance and helped put my daily work tasks in perspective.”

Sr. Regulatory Analyst, NiSource/NIPSCO

“Would highly recommend this course for anyone who is seeking to learn solid fundamental skills in cost-of-service study and rate design concepts.”

Staff Counsel, Kentucky PSC

“This class was very beneficial for me. It has given me more of a high-level view of the cost-of-service concepts and techniques.”

Regulatory Affairs Coordinator, Entergy

“A great overview for all levels of experience. Materials covered the basics and touched on more complex issues. The speakers had the knowledge and expertise to fully answer all the in-depth questions.”

Analyst, Brubaker & Associates Inc.

“Both speakers were excellent! Very knowledgeable and very good at explaining their topics. Really enjoyed the class.” 

Utility Rate Analyst, Guernsey

“Great introduction to COSA – if you are looking for a place to start, this is the course.” 

Power Supply Planning Specialist, FortisBC

“The best Cost of Service Principles course I have taken!” 

Rates and Tariffs Analyst, Michigan Public Service Commission

As utilities face increasing scrutiny over cost recovery, rate fairness, and transparency, the pressure on regulatory and rate teams has never been greater. Distributed energy resources, evolving load profiles, and new policy mandates are reshaping the way costs are allocated and recovered. Traditional approaches to cost-of-service no longer provide the clarity needed for today’s complex utility landscape.

This two-day course provides the attendees with comprehensive, start-to-finish framework for developing and interpreting cost-of-service studies. Participants will gain a working knowledge of revenue requirements, cost allocation methodologies, and rate design principles, while also examining how regulatory perspectives and utility structures shape outcomes.

Through practical exercises and real-world case studies, attendees will learn how to:

  • Prepare and structure a cost-of-service study, including key financial and system analyses.
  • Evaluate revenue requirements and test-year adjustments.
  • Apply functionalization, classification, and allocation methods with confidence.
  • Interpret study results to identify subsidization, support rate class design, and inform regulatory decisions.

By combining technical depth with applied learning, this program equips rate analysts, utility staff, and regulators with the tools to produce credible, defensible cost-of-service studies that withstand regulatory and stakeholder scrutiny.

Learning Outcomes

  1. Explain the steps in the ratemaking and cost-of-service processes and interpret cost-of-service results from multiple stakeholder perspectives.
  2. Describe the overall cost-of-service process, identify key team members and stakeholders, and summarize the regulatory frameworks that govern the process.
  3. Explore how to plan a cost-of-service study by selecting the study period, conducting essential load and system analyses, and integrating financial planning and load forecasting.
  4. Explain the policies and objectives guiding a cost-of-service study and analyze different strategies for pricing, cost allocation, and cost recovery.
  5. Define revenue requirement and compare the calculation methodologies for different types of utilities, including key components such as rate base, WACC, and test year adjustments.
  6. Apply revenue requirement concepts to real-world scenarios by performing test year adjustments for new customer loads and generation resources.
  7. Explain the fundamental cost allocation methodologies and differentiate between embedded vs. marginal costs and bundled vs. unbundled rate structures.
  8. Categorize utility costs by function and apply direct and derived allocation methods through hands-on exercises.
  9. Classify utility costs into categories such as fixed, variable, demand, energy, and customer-related, and apply these classifications through hands-on exercises with distribution plant costs.
  10. Conducting essential load and system analyses, and integrating financial planning with load forecasting.
  11. Explain the policies and objectives guiding a cost-of-service study and analyze strategies for pricing, cost allocation, and cost recovery.
  12. Define revenue requirement and compare the calculation methodologies for investor-owned, cooperative, and municipal utilities.
  13. Analyze customer data to determine appropriate rate classes and explain how cost-of-service analysis supports equitable and strategic class design, including modern trends like community solar.
  14. Explain the policies and objectives guiding a cost-of-service study and evaluate different strategies for pricing, cost allocation, and cost recovery, including marginal vs. embedded costs and unbundling approaches.
  15. Develop allocation factors for demand, energy, and customer-related costs.
  16. Compare allocation methodologies to assign costs to customer classes through hands-on exercises

Recommended Experience

No prior cost-of-service experience is required, although knowledge of utility system infrastructure, business environment, and operations will be helpful. To participate in model development, a laptop computer with Microsoft Excel 2003 or later is required.  

Register

REGISTER NOW FOR THIS EVENT:

Individual attendee(s)$ 1595.00 each(early bird rate)
(price after July 3, 2026 is $ 1,795.00)
Volume pricing also available

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

Pack of 5 attendees$ 6,780.00 (15% discount)(early bird rate)
(price after July 3, 2026 is $ 7,625.00)
Pack of 10 attendees$ 12,760.00 (20% discount)(early bird rate)
(price after July 3, 2026 is $ 14,360.00)

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 June 19, 2026 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 retains the right to refuse registration by any individual or company.

Day one

Monday, July 20, 2026

Day two

Tuesday, July 21, 2026

Agenda

Monday, July 20, 2026

Denver, CO

Registration & Continental Breakfast

8:00 AM

Lunch Break

12:00 - 12:30 PM

Adjourn for the day

4:00 PM

8:00 AM - 8:30 AM

Registration & Continental Breakfast

12:00 - 12:30 PM

Lunch Break

8:30 AM - 4:00 PM

Course Timing

Short breaks will be taken throughout the course (30 minutes total)

Course Overview and Introduction

This session will introduce the foundations of cost-of-service analysis, including its background, requirements, and points of overlap with broader pricing practices. It will familiarize participants with the instructors and provide a roadmap of the process that will frame the rest of the course.
Key ideas:

  • Steps in the ratemaking process
  • Steps in the cost-of-service process
  • Developing cost-of-service analysis – different perspectives
  • Interpreting cost-of-service results

Overview of Cost-of-Service Process

This session will provide a high-level overview of the entire cost-of-service process and the ecosystem in which it operates. It will introduce the key team members, identify the various stakeholders involved, and outline the critical regulatory frameworks—from state and local to federal mandates—that govern the practice.
Key Ideas:

  • Overview of Cost-of-Service Process
  • Process overview
  • Introduction
  • State regulatory process
  • Local regulatory process
  • Federal mandates
  • The cost-of-service team
  • Stakeholder

Study Preparation

This session will focus on the critical groundwork required for a successful cost-of-service study. It covers key preparatory steps, from selecting the study period and conducting essential load and system analyses to integrating financial planning and load forecasting.
Key Ideas:

  • Introduction
  • Four important considerations
  • Common supporting analyses to ensure success
  • Financial planning
  • Study period selection
  • Load research study
  • System loss study
  • Resource planning studies
  • Minimum system studies
  • Accounting for direct assignment
  • Lighting study
  • Load forecasting

Morning Break – 15 minutes

Policies, Objectives, and Strategies

This session will define the core policies and objectives that guide a cost-of-service study and shape its strategic outcomes. It explores key implementation strategies, including the choice between marginal and embedded costs, cost unbundling, and the design of various pricing and cost recovery mechanisms.
Key Ideas:

  • Introduction
  • Policies
  • Objectives
  • Strategies
  • Marginal vs. embedded costs
  • Cost unbundling
  • Competitive pricing
  • Time-of-use pricing support
  • Real-time pricing support
  • Varying return on investment
  • Cost recovery through rules and regulations
  • Other strategies

12:00 p.m. – 12:30 p.m. ::  Lunch Break

Revenue Requirement

This session establishes the critical concept of revenue requirement, which defines the total income a utility must collect from customers. It examines the different calculation methodologies for investor-owned utilities, cooperatives, and municipals, covering key components like rate base, the weighted average cost of capital (WACC), and test year adjustments.
Key Ideas:

  • Introduction
  • Steps in rate design process
  • Definition
  • What is included in revenue requirements
  • Test year concept
  • Known and measurable adjustments
  • Used and useful adjustments
  • Components
  • Utility approach (IOU)
  • FERC Uniform System of Accounts
  • Rate base
  • Components
  • Definitions
  • Return on rate base
  • Weighted average cost of capital (WACC)
  • Cost of debt
  • Cost of equity
  • Utility case studies
  • Utility approach (regulated cooperative)
  • Cash approach (municipal)
  • Debt service coverage ratio
  • Comparison
  • Adjustments to base rates
  • Introduction to cost-of-service model

Afternoon Break – 15 minutes

Revenue Requirement (continued)

This session provides hands-on practice applying key revenue requirement concepts through practical classroom exercises. Participants will work through test year adjustments for two common scenarios: integrating a new large customer load and adding a new generation resource.
Key Exercises:

  • Classroom exercise No. 1: revenue requirement test year adjustment – adding a new load
  • Classroom exercise No. 2: revenue requirement test year adjustment – adding a new resource

Cost Allocation Methodologies

This session will introduce the fundamental methodologies for allocating costs to different customer classes. It explores common approaches, including the distinction between embedded and marginal cost allocation, as well as bundled versus unbundled rate structures.
Key Ideas:

  • Introduction
  • Steps in ratemaking process
  • Sample cost allocation methods
  • Common approaches to cost allocation
  • Embedded
  • Marginal
  • Common approaches to cost allocation
  • Bundled
  • Unbundled

Agenda

Tuesday, July 21, 2026

Denver, CO

Continental Breakfast

8:00 AM

Lunch Break

12:00 - 12:30 PM

Adjourn for the day

4:00 PM

8:00 AM - 8:30 AM

Continental Breakfast

12:00 - 12:30 PM

Lunch Break

8:30 AM - 4:00 PM

Course Timing

Short breaks will be taken throughout the course (30 minutes total)

Functionalization of Costs

This session focuses on the process of functionalization, which categorizes utility costs into specific business units like generation, transmission, and distribution. It will cover both bundled and unbundled approaches, introducing methods for direct and derived cost allocation through a hands-on classroom exercise.

  • Introduction
    • Steps in ratemaking process
      • Bundled approach
      • Unbundled approach
  • Business unit concept
    • Products and services
    • Allocations
      • Direct
      • Derived
  • Classroom exercise No. 3: functionally unbundling costs

 Morning Break

Classification of Costs

This session explores the classification of costs, categorizing them into fundamental types, including fixed, variable, demand, energy, and customer-related costs. Participants will apply these concepts through a hands-on exercise focused on classifying distribution plant costs.

  • Introduction
    • Steps in ratemaking process
    • Basic cost categories
  • Fixed and variable costs
  • Cost classifications
    • Demand-related
    • Energy-related
    • Customer-related
    • Revenue-related
    • Direct assignments
  • Classification of functions
  • Special studies
    • Minimum systems
    • Zero intercept
  • Classroom exercise No. 4: classification of distribution plant

Rate Class Determination

This session addresses the strategic decisions involved in defining customer rate classes, including determining the number, type, and structure of classes to ensure equitable cost recovery. It also explores modern trends like community solar and how cost-of-service analysis provides the foundational support for these critical design choices.

  • Overview of issues
    • Rate classes
    • Number of classes
    • Type of classes
    • Classes within classes
    • Rate class trends: community solar
    • Cost-of-service support

 Lunch Break

Development of Allocation Factors

This session focuses on the development of allocation factors, which are the critical tools used to assign functionalized costs to specific customer rate classes. Participants will learn the key methodologies for demand, energy, and customer-related allocation and apply them in a hands-on exercise calculating demand allocation factors.

  • Introduction
    • Steps in ratemaking process
  • Demand allocation factors
    • Coincident peak
    • Non-coincident peak
    • Sum of max demands
    • Average and excess
    • Other
    • Utility Case Studies
  • Energy allocation factors
  • Customer allocation factors
  • Revenue allocation factors
  • Direct assignment
  • Classroom exercise No. 5: development of demand allocation factors

Allocation of Costs

  • Classroom exercise No. 6: allocated cost-of-service

 Afternoon Break

Interpreting Cost-of-Service Results

This session focuses on analyzing the results of a cost-of-service study to identify and interpret instances of subsidization between and within customer classes. The course will then conclude with a summary of key principles and their application in effective ratemaking.

  • Introduction
  • Subsidization
    • Inter-class subsidization
    • Intra-class subsidization

 Course Wrap-Up

 

Instructors

Scott H. Burnham

Partner

NewGen Strategies & Solutions LLC

Mr. Burnham has over 25 years of experience in consulting, management, cost-of-service, feasibility analyses and valuation services. His responsibilities include development of revenue requirements, costs-of-service allocation methodologies, rate design and revenue adequacy studies, utility valuation analyses and other engineering economic analysis. His project feasibility, financing and system acquisition projects have provided clients with a sound financial basis upon which to make decisions on purchasing, selling or modifying facilities. His rate related projects have included those that required the development and review of retail and wholesale electric rates, and rate structures, and analysis of rate riders for interruptible industrial rates, environmental cost adjustment rates, energy / fuel cost recovery and others. He has also assisted industrial customers in rates negotiation and evaluation.

Mr. Burnham has also been involved in feasibility and implementation studies, independent engineering reviews, operation and maintenance reviews, planning studies and valuation studies for generation assets. He has led multiple projects that have focused on determining the value of distributed solar resources to specific utilities. His clients have included municipal utilities, investor-owned utilities, electric cooperatives, and private sector clients.

David A. Berg, P.E.

Principal

Dave Berg Consulting, LLC

Mr. Berg is a Principal with Dave Berg Consulting, LLC, and has more than 40 years of experience. He specializes in consulting services requiring a combination of technical and financial expertise. His electric industry restructuring and pricing work has assisted utilities in stabilizing their customer base and revenues in an increasingly complicated environment as well as in educating them on the particular industry changes that could affect their operations most significantly. His project feasibility, financing and system acquisition projects have provided clients with a sound technical and financial basis upon which to make decisions on purchasing, selling or modifying facilities. He understands the special issues confronting small and medium size municipal utilities, as well as the joint action agencies serving these utilities. He has also assisted industrial customers in analyzing particular industry issues that impact their operations.

Mr. Berg has also been involved in financial and technical evaluation of power generation projects that utilize alternative fuels. These have included landfill gas, biomass and wind generation projects.

Mr. Berg is a popular speaker both at utility training sessions and state and national conferences, due to his ability to focus on the essential points of complicated issues and to recommend actions appropriate to the audience.

Ryan Matley

Senior Manager

NewGen Strategies & Solutions LLC

Ryan Matley brings over 20 years of experience in the electric and natural gas utility industries. He specializes in regulatory finance, cost-of-service analysis, rate case support, and stakeholder engagement. Ryan has served as an expert witness in several proceedings and has led initiatives in regulatory affairs, finance, and product development, ensuring a balance between utility objectives and customer needs.

 

Before joining NewGen, Ryan held leadership positions at Xcel Energy, where he managed teams performing regulatory cost recovery filings and developing innovative renewable energy programs. His previous experience also includes consulting with the Rocky Mountain Institute and advancing demand-side management programs at Pacific Gas & Electric.

Location

EUCI Conference Center
6400 S Fiddlers Green Cir.
Greenwood Village CO, 80111

Nearby Hotels/Airports

Continuing Education Credits

IACET

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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 1.3 CEUs for this event

Verify our IACET accreditation

Who recognizes IACET Credits?

 

Requirements for Successful Completion of Program

Participants must be present, either in-person or virtually, each day and be in attendance for the entirety of the course to be eligible for continuing education credit. 

Instructional Methods

PowerPoint presentations, classroom discussions, and question-and-answer sessions will be used in this conference.

CPE

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

Course CPE Credits: 15.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: 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 website: www.nasbaregistry.org

CLE

Only registered attendees can request CLE credits for an EUCI course/event.  Please email [email protected] prior to the course start date and list the state where you are licensed and your bar# as well as the name and date of your course/event in your request, and someone will be in contact.

Kentucky Bar Association - Continuing Legal Education Commission

This course has been approved by the KBA CLE Commission for 12 CLE Credits.

Who Should Attend

This course is recommended for policymakers, managers, attorneys, regulators, key accounts representatives, accountants, engineers, and analysts who would like introductory, hands-on training related to cost-of-service concepts and techniques for electric utilities.