The origin and meaning of the public utility concept
The rationale for regulation
The regulatory compact: duties and obligation
The evolution of regulation and introduction of competitive markets
Evolution of industry structure
The revenue requirement: assumptions and principles
Principles applied to pricing
Economics of natural monopoly
Foundations of public utility pricing
Pricing strategies and special topics
Cost of Service Overview
Basic approach of cost of service
Marginal v. Embedded
Pricing traditional services
Embedded Cost of Service
Classification and allocation
Interclass revenue allocations
Exercise: Embedded cost and interclass revenue allocation
Marginal Cost of Service
Purpose of a marginal cost study
Planning and marginal cost
Customer, T&D and generation costs
Data used in MC studies
Reconciliation with revenue requirement and interclass revenue allocation
Friday, October 30, 2020
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
Traditional Rate Design
Two-part and multi-part rates
Pricing capacity and access
Issues in using embedded costs for unbundling rates
Modern Rate Design
Straight-fixed variable pricing
Modern demand-based pricing
AMI and smart metering
Special pricing topics: demand management, TOU rates, load retention, NGV pricing
Special Topics in Rate Design
Net energy metering
Special contracts and economic development rates
PBR and incentive regulation
Utility of the future and platforms
Revenue stabilization plans
Wrap-up and Discussion of Future Directions
Dr. Carl Peterson, Clinical Professor of Economics, University of Illinois Springfield and Executive Advisor to Concentric Energy Advisors
Carl Peterson, Ph.D, is currently Clinical Professor of Economics at the University of Illinois Springfield. Dr. Peterson was a consultant with NERA Economic Consulting (2000- 17), a senior advisor for energy policy (1996-2000), a rates economist (1994-96) at the Illinois Commerce Commission, and a staff economist at the Center for Regulatory Studies at Illinois State University (1993-94). Dr. Peterson is currently an Executive Advisor to Concentric Energy Advisors. Dr. Peterson has advised governments and private entities in Europe and the US on issues related to the regulation of public utilities since 1998. Dr. Peterson has been a program faculty member at the Institute of Public Utilities at Michigan State University and has taught economics at Illinois Central College and Eureka College. His work has appeared in The Electricity Journal, Journal of Accounting and Finance, Natural Gas and Electricity, and several edited volumes.
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