Energy, Telecom, and Water Law Updates 2-27-15
1 Session Introduction by Bryan Kleinmaier
Energy, Telecommunications and Water Law Update – 2015
This program is Co-Sponsored by the Public Utilities Section
Friday, February 27, 2015
Pyle Center, Room 235
Program Description: An update of notable regulatory and legal cases, statuses, and administrative code provisions impacting practitioners in the energy, telecommunications and water arena in the year 2014.
Who Should Attend: Those interested in PSCW activities, energy and telecommunications law attorneys, water attorneys, municipal attorneys, and environmental attorneys.
Key Takeaways: Gain understanding of key developments in energy, telecommunications and water regulation; Explore recent happenings in the Public Service Commission of Wisconsin; Learn about changes in electric technologies and state reforms.
9:00 – 9:05 – Introduction | Bryan Kleinmaier, Partner, Stafford Rosenbaum LLP
9:05-10:00 – Overview of Changes at the Public Service Commission of Wisconsin | Cynthia Smith, Chief Legal Counsel at the PSCW
10:00-10:25 – Telecommunications Law Updates | Mike Varda, PSCW Office of General Counsel & Judd Genda, Partner, Axley Brynelson in Madison
10:25-10:40 – Break
10:40 – 11:20 – Energy Law Updates | Kira Loehr, Executive Director and General Counsel, Citizens Utility Board of Wisconsin, Inc., PSCW case updates & David Gilles, Godrey and Kahn, State and Federal legislative and case updates
11:20-11:50 – Municipal Law Updates | Anita Gallucci, Partner, Boardman and Clark LLP
11:50 – 12:20 – PSCW Water Regulatory Law Updates | Lawrie Kobza, Partner, Boardman and Clark LLP
12:20-1:40 – Lunch with Speaker, Changing Electric Technologies and State Reforms | Lauren Azar, Attorney, Azar Law LLC
1:40-2:00 – Questions and Answers
2:00 – Program concludes
$125 Registration Fee
Registration includes instruction, course materials and meals.
Directions and Where to Park:
Pyle Center is located at 702 Langdon Street on the UW-Madison Campus. Parking ramps are on Lake St.
Combined Heat and Power Workshop
This program is co-sponsored by the Dept. of Administration and the State Energy Office
Friday, January 23, 2015
9:30 AM – 4:00 PM
Pyle Center, Room 325
If the state embarks on an initiative to accelerate the adoption of CHP and industrial operational efficiency, and, if the utilities were put in charge of the program, what might the program look like?
9:30 – 9:50 DOA/SEO Program objectives—what will the DOA/SEO do with the stakeholder work and future plans for this work? | Kevin Vesperman and Amanda Mott, DOA
9:55 – 10:20| Anne Hampson, ICF International
- Benefits of CHP from an environmental and economic perspective
- Utility experiences – What makes a good business case for CHP
- Lessons learned from incentive programs
10:25 – 10:40 Experience for contracting CHP across Wisconsin | Randy Bertram, WMEP
10:45 – 11:00 Utility experience in contracting CHP | Rob Benninghoff, WPS
11:05 – 11:30 Open discussion on barriers and opportunities as outlined by three previous speakers
11:30 – 12:30 Panel Discussion
In this session, we will explore how operational efficiency and moves to add such enhancements as CHP can lead to new production and thus new load. The example will be drawn from current efforts: What needs to happen to ensure that this kind of effort is a benefit to utilities and stakeholders?
- Small/mid-size rural farm perspective | Dale Olson, USEMCO/Peters Farm
- Financial success and potential resource recovery centers | Chris Lefebvre, Stevens Point WWTP
- Phosphorus, etc. | Paul Nehm, Madison WWTP
- Tribal/Industry | Charlie Opferman, Potawatomi Digester
- Matt Cole | Big Ox Energy
- Joel Laubenstein | Baker Tilly
12:30 – 1:00 Lunch
Technical and Contracting Options
1:00 – 1:30 Utility CHP Contracting | Tim Baye, Professor Business Developments, State Energy Specialist
1:30 – 1:50 CHP Technology Changes and Applications | Jeff Ihnen, Michaels Energy
1:50 – 2:10 Is there something here of interest? Discussion
2:10 – 2:50 We will divide the attendees into two groups: CHP or Operational Energy Efficiency.
Questions will include:
What benefits do you (utility, public interest, customer) see from adoption of these technologies ?
What are the downsides?
Are there policies that help the state move forward with these technologies?
Are there policies that stand in the way?
What would make you (utility, public interest, customer) welcome this change?
What would make you not welcome this change?
2:50 – 3:15 View other team’s work
3:30 – 4:00 Return to group and discuss findings on flip charts and any issues placed into a “parking lot” topic.
Can we find some common ground for further discussion:
- Anything needs further investigation on possibility—if so, who and timeline
- Closing comments from participants, SEO/DOA
EEI Electric Rate Advanced Course: Rates to Address New Challenges
July 19-22, 2015
University of Wisconsin
Madison Fluno Center for Executive Education
EEI’s 2015 Electric Rate Advanced Course teaches students ratemaking tools to meet today’s business challenges. This year, the curriculum presents:
- An overview of ratemaking basics a review of what the student should know to get the most benefit from the course
- Current ratemaking issues, such as those surrounding the prospective implementation of the Smart Grid, responding to the challenges of Distributed Energy Resources, and New Utility Business Models
- Rate policies needed to build sustainable energy efficiency businesses
- Rate policies (and issues) likely to be encountered in context of policy mandates to promote renewable resources
- New technical issues associated with determining the cost of equity in today’s risk-averse, turbulent capital markets, and related issues of rate case strategy
- New information on customer attitudes, and what they mean for the development of effective regulatory and marketing strategies.
- Ratemaking issues associated with alternative regulatory mechanisms to address contemporary operating challenges without chronic underearning or annual rate cases.
EEI’s advanced rate course provides a unique opportunity for senior staff to practice developing regulatory strategies to address an increasingly complex set of technical and financial challenges.
Sunday, July 19
- Overview of Rate Basics – This session will give students an overview of costing and pricing concepts. It is designed to give students a refresher and starting point on embedded cost of service studies and basic rate design.
Monday, July 20
- Team Assignments – Students will be assigned to teams that develop and present a utility strategy for dealing with the issues raised in the course.
- Regulatory Accounting – A review of revenue requirements, income statement, balance sheet, rate base, operating expenses, rate of return, and tax treatment concepts.
- Cost of Capital – Uncertainty about the cost of debt and equity and the growing challenges of estimating cost of equity with traditional methods (DCF, CAPM).
- Demand Rate Design Methodology – Minimum distribution system rate design and applications.
- Cost Allocation and Marginal Costs – Review the allocation of costs to generation, transmission, and distribution functions (and the development of cost of service for stand-alone distribution services). Hands-on numeric examples that allow students to practice methods of embedded cost analysis (functionalization, classification, allocation), and marginal cost analysis (the development of incremental and decremental costs).
Tuesday, July 21
- Customer Trends & Perspectives– Using customer usage trends and perspectives on energy policy, rates, & pricing options to develop more effective regulatory, pricing, and marketing strategies
- Role of Time-of-Use (or Time-based; Time-differentiated; Dynamic) Pricing – The cost basis for time-differentiated dynamic pricing. Features of alternative designs. Evidence of customer satisfaction and load response.
- Alternative Regulation – Alternative approaches to regulating power distributors and vertically integrated utilities in an era of increased investment needs and slower demand growth. Includes discussion of multi-year rate plans and other forms of performance-based ratemaking, revenue decoupling, formula rates, forward test years, and capital cost trackers.
- Utility Strategy Proposal Planning – Students break into teams to craft proposed utility strategies for dealing with issues raised by the course.
Wednesday, July 22
- Rate Designs for the Utility of the Future – Preparing the utility for new business models, dealing with increasing distributed generation, and new data policies.
- Case Study Dealing with New Utility Challenges – Real utility experiences with emerging utility challenges.
- Summation – Assigned teams present their results of the regulatory strategy work groups. Concluding with a round-table discussion that encourages students to integrate information from the previous two and one-half days into a strategic perspective on rate making.
Larry Blank – Center for Public Utilities, New Mexico State University
John Caldwell – EEI
Bente Villadsen – The Brattle Group
Philip Hanser – The Brattle Group
Larry Vogt – Mississippi Power Company
Eric Ackerman – EEI
Steve Braithwait – Christensen Associates Energy Consulting
Mark Lowry – Pacific Economics Group Research
Doug Ziemnick – DTE Energy
The registration fee for this course is $1,700 for the first student from a member company and $1,400 for each additional student from the same company, and includes instruction, course materials, some meals, and receptions. Deadline for registration at the Fluno Center is June 15 (please see below). Deadline for registration with EEI is July 13. However, until registration is full, late registrations will be accepted. Registration is limited to 35 attendees to assure optimum interaction between participants and the course leaders. Registration withdrawal after July 13 will be subject to a $500 cancellation fee.
Continuing Education Credits
The course offers the following continuing education credits for students attending the pre-course workshop.
2.2 CEU Continuing Education Units
22 CPE For Public Accountants
For those students not attending the pre-course workshop the credits are as follows:
1.9 CEU Continuing Education Units
19 CPE For Public Accountants
Dates and Accommodations
The EEI Electric Rate Advanced Course will run from Sunday, July 19 through Wednesday, July 22, 2015 at the University of Wisconsin-Madison in the Fluno Center for Executive Education in Madison, WI. The course is sponsored and developed by the Edison Electric Institute Rates and Regulatory Affairs Committee.
A block of rooms has been reserved at the Fluno Center for Executive Education at the University of Wisconsin-Madison until June 15. (We continue to work with the Fluno Center to try to shorten this lead time, so please check even if the deadline has passed.) The rate is $149/night. To ensure the availability of a room, please make your reservations before June 15 by calling (877) 773-5866, or go on-line: www.fluno.com. Please mention you will be attending the EEI Electric Rate Advanced Course.
The Fluno Center is a short 15-minute taxi ride from the Dane County Regional Airport. The Financial Times of London has ranked the Fluno Center in the top 2 worldwide for food and accommodations for custom programs.
[If you would prefer not to receive notices about the Advanced Rate Course in the future, please respond so to this message.]
Energy Utility Basics Fundamentals Course
October 5 – 9, 2015
Seminar Site: The Pyle Center, located on Lake Mendota
Energy Utility Basics is an intensive course on the fundamental concepts critical to being conversant in today’s energy industry. Course content is updated yearly as technology, regulation, competition and markets evolve. WPUI has proudly presented this exceptional course each fall since 1983.
Course Summary: Over four and a half days, participants will receive an introduction to the electric and natural gas industries, insights into regulatory decision-making, and an analysis of the current issues facing both industries. The dedicated gas course begins Thursday at noon and continues until mid-Day Friday.
Benefits: Attendees will obtain practical knowledge of the operations and technology of the natural gas and electricity industries from extraction, whether from the ground or renewables, to the customer’s bill. Course registration covers a field trip to a natural gas power plant, daily lunches and breaks, printed course materials and UW-Madison CEU certification. CLE credits will be applied for.
Who Should Attend: The energy industry has undergone substantial changes – including changes in hiring practices. Twenty years ago, new utility staff would start out learning the ropes by working up through the ranks. In today’s fast-moving business environment, it is often advantageous to hire staff from other industries, bringing in outside talent that doesn’t yet have a working knowledge of the energy industry. Energy Utility Basics is intended for anyone working in the energy industry, including public interest groups, legislative staff, regulatory staff, state and local government personnel. The course is for energy professionals who want a better grasp of how all the technological, financial and political pieces of the energy puzzle fit together. Registration is open to the public
What others have said:
“I came in new to the industry wanting to learn about how energy is made, distributed, and transmitted. I am leaving with a better understanding of all that and more.”
“The good mix of speakers and audience made for an excellent atmosphere to understand a complex industry from all angles.”
“I wish I could have taken this course right away when I entered the utility industry.”
“I appreciate the care in progressively building on the modules.”
“Plenty of beneficial information, good speakers.”
“As someone with only a couple years of utility experience, this was a great foundation”
“Covered as many of the topics as possible in an entertaining and informative way – could have been very boring, but it wasn’t. Nice work!”
“Excellent overview and well-planned program.”
“Delivery of complex information in an easy to digest manner.”
“I loved getting to see the operators and getting to touch and see how it all works at the power plant”
“Variety of speakers, all were knowledgeable and able to break down the subject matter for those with a limited knowledge of the industry.”
October 5: Electricity — Industry Structure
Why a regulated monopoly? Who’s regulated, why and how: The Federal and State Perspective
- Federal Roles, Rules, Spheres of Influence: FERC and EPA
- The Public Service Commission-Roles and Rules, Balance of Power
- Transmission-The Overlooked Connection Until 1970
- A Day in the Life of a Regional Transmission Organization: A Primer
- Utility Company Models-Presentations and Panel Discussion
October 6: Electricity — Industry Operations
From Heat to Electricity – How we make Electricity in the U.S.
- Field Identification Guide to the Electric Industry
- A Day in the Life of a Distribution Company
- A Day in the Life of a Transmission Operator
- Field Trip: Co-Generation Power Plant
October 7: Ratemaking for Electric and Gas Companies
What Drives Utility Stock Prices? What (Should) Keep Utility Execs Awake at Night?
- Basics of Rate Setting
- Dynamic Pricing and Demand Response
- New Models for Pricing
- Declining Revenues and Rate Response
October 8: Low to No Carbon Options
Work Done Without (or with a small) Carbon Footprint
- Nuclear Future—The Base Load of the Future?
- Balancing your Resource and Financial Portfolios
- Where, How and Why Energy is Used in the US
- Renewables Panel
October 9: The New/Old Kid on the Block: Gas
What Everyone Ought to Know About Gas
- Providing Natural Gas Service-Wholesale
- Providing Natural Gas Service-Retail
- Gas Physical and Financial Markets
Institute Member — $1,450.00
Non-Member — $2,250.00
Government (Non-Utility) — $700.00
Non-Profit, Member — $1,200.00
Non-Profit, Non-Member — $1,550.00
Register here: http://tinyurl.com/nxtzoow
Accommodations: Graduate Madison
Room Rate: $149
Deluxe Rooms includes amenities such as transportation to and from the Madison Airport, hot breakfast and more.
Parking is available for hotel guests
Additional Parking available in Lot 46 (Lake & Johnson St Ramps at 301 N. Lake St.)
Defined Benefit Pensions: A Balancing Act of Financial, Regulatory, Fiduciary, and Public Trust Considerations
October 31, 2014
Pyle Center on Langdon Street (Park in the Lake Street Ramp)
Wisconsin Council on Economic Education, Inc. and the Wisconsin Public Utility Institute
Registration is required
Pension plans and responsibilities for pension plans have changed over the past years. No longer is it the “savings account” for retired employees. This pension seminar will review the interests of involved parties and the responsibilities assigned to the various regulatory bodies at federal and state level. The interactions and potentially conflicting objectives among the various interested parties will be considered.
A special discussion seminar with Enrique Bacalao, Economics Wisconsin President and Chief Executive Officer
Tom Kilkenny, Partner, Deloitte & Touche
Wesley Smyth, Vice President – Senior Accounting Analyst. Moody’s Investors Service
Timothy Jennings, Managing Director and Head of Origination, Pacific Global Advisors
Registration is required, attendance will be limited to 25. Please use the link below to register.
|9:30 – 9:45||Registration|
|9:45 – 10:00||Introductions||Cara Lee Mahany Braithwait, Director, WPUI|
|10:00 – 10:15||Framing the Issues||Enrique BacalaoPresidentWisconsin Council on Economic Education, Inc.||We will frame the issues that will be addressed at this meeting and will suggest a desired outcome for the session, with the participants’ help. This presentation will review the interests of the various parties and the responsibilities assigned to the various regulatory bodies at federal and state level. The interactions and potentially conflicting objectives among the various interested parties will be considered. This presentation sets out to provide a framework for the subsequent presentations and discussions.|
|10:15 – 11:00||A Legal Perspective||Emory IrelandPartnerFoley & Lardner(to be confirmed)||In this session we will discuss the nature of the defined benefit pension plan’s obligations and the sponsors’ fiduciary responsibility to its employees, retirees, and stockholders, balanced against the duties to the customers, other commercial stakeholders, and the general public. The last 15 minutes of this session will be available for discussion.|
|11:00 – Noon||An Accounting Perspective||Tom KilkennyPartnerDeloitte & Touche||In this session we will discuss the rules followed to measure and report on our defined benefit pension plans’ obligations and assets according to U.S. GAAP, as well as the determination of any given defined benefit plan’s net funding status, and the impact of these rules on the various financial statements. The last 15 minutes of this session will be available for discussion.|
|Noon- 12: 30||Box Lunches and a Break|
|12:30 – 1:30||A Credit Rating Agency’s Perspective||Wesley SmythVice President – Senior Accounting AnalystMoody’s Investors Service||In this session we will discuss how one major credit rating agency evaluates the management of defined benefit pension plans, and how alternative pension plan management strategies and outcomes affect the plan sponsor’s credit strength and credit ratings. The last 15 minutes of this session will be available for discussion.|
|1:30 – 1:45||Break|
|1:45 – 3:15||What Can We Do?||Timothy JenningsManaging Director and Head of OriginationPacific Global Advisors||Given the current positions of public utility companies, the regulatory framework faced in this area, and current market conditions, are there better ways to reduce risk and lower the costs of meeting defined benefit pension plans? If so, what are the main characteristics of these alternatives? Within the regulatory framework, what encourages or discourages plan sponsors to make the right decisions? How can we be sure of any proposed changes actually improving matters? The last 30 minutes of this session will be available for discussion.|
Rate Design Workshop
October 13-15, 2014
Eligible for 2 CEUS–Ask about CLEs
For information about attendance and fees, please contact: email@example.com
To register for the event please click here
Registration fee: $650
This is a unique opportunity to take part in discussions about rate issues–the first day and a half will be devoted largely to making sure we are all using the same set of ideas and vocabulary. The last full day will be devoted entirely to roundtable discussion with experts and the participants.
Rate design is undergoing a sea of changes in policy objectives, metrics, customer expectations, and technology changes. A day to discuss these kinds of options should be not only a good change of pace for rate design professional, whether in the industry or from organizations such as commissions and public/business interest groups, but it could hopefully stimulate some new ways to think about pricing in the future.
Training facility is a half block down the street.
|Monday October 13|
8:30 – 9:30 The Principles—everyone using the same vocabulary
The Principles—everyone using the same vocabulary
Trainers: Bruce Chapman, Steve Braithwait CA Energy Consulting
The energy industry has moved from bundled to unbundled energy costs posing new problems and creating new opportunities for rate design. This first section will look at efficient rate design. We will present the economic principles for designing retail electricity rate structures that provide appropriate incentives for energy efficiency and variable rate design and discuss the resulting trade-offs.
- What should rates achieve?
- Examples of tradeoffs – e.g. revenue recovery vs. efficient pricing
- The role of price signals—to what prices do customers respond?
- Static (e.g. TOU) and dynamic (e.g. CPP, RTP) rate designs
- Customer, utility, stakeholder and commission risk
9:30 – 9:45 Break
9:45 – 12:30 Cost Recovery Challenge
Discussion leaders: Robert Camfield and Dan Hansen
- Institutional and statutory basis for determining utility prices.
- Notion of a public utility – “for the convenience and necessity of the public”
- Just and reasonable rates
- Fair rate of return criteria
- Metrics for determining average cost-based prices
- Revenue requirements
- Fixed operating expenses and fuel charges
- Rate base and return on capital
- Rate of return, and operating income
- Capital measurement
- Original and current cost basis of resource value
- Cost of capital
- Capital structure
- Debt, equity, and zero cost components
- Debt securitization
- Regulatory capital structure: departures from the books
- Double leverage: is it appropriate to apply?
- Debt, equity, and zero cost components
- Return on equity
- Metrics and market models including DCF, Risk Premia, and CAPM
- Capital structure
- Revenue requirements
- Regulatory governance
- Revenue sufficiency in the context of declining sales and rising costs
- Cost trackers
- Incentive properties
- Performance-based regulation, and incentives to minimize costs
- Principles for affiliate transactions
- Managing the problem of competitive entry
- Revenue sufficiency in the context of declining sales and rising costs
12:30 – 1:30 Lunch
1:30 – 2:15 Recovery of Fixed Cost Options
Discussion Leader: Dan Hansen
2:30 – 4:30 Who causes a cost, and who should pay? Iit is not as easy as one might hope (Engineering and Economic principles of embedded cost of service).
Discussion Leader: Lawrence J. (Larry) Vogt is the Manager of Rates for Mississippi Power Company, noted author of Electricity Pricing –Engineering Principles and Methodologies (published 2014)
In this section we will review how costs are classified between demand-related and customer-related cost components. MDS is key to determining the monthly fixed costs of providing basic electric service. It provides a cost justification basis for the Customer Charge portion of the rate structure.
- Whose fault is this cost (understanding customer and line faults)
4:30 Propose Questions for Wednesday
|Tuesday October 14|
8:30 Pricing of Renewable Products—Discussion Leader, Bruce Chapman
- Pricing Renewables
- Securing supply: Feed-in tariffs and renewable portfolio standards—principles, intended and unintended outcomes
- Auction-type renewable energy purchases—e.g. LIPA/Austin Energy
- Securing supply from customers: net metering issues
- Selling to customers: green pricing and cost recovery
- Training Coordinator: Bruce Chapman, CA Energy Consulting and other speakers as appropriate
9:45 Wholesale Costing and Pricing of Electricity with Respect to Marginal cost rate making and revenue allocation—includes breaks and lunch
Discussion Leader: Laurence Kirsch and Robert Camfield
We will cover topics such as:
- Carrying Charges on capacity: financial basis of charges
- Marginal Generation Costs
- Marginal generation capacity and reserve costs
- Marginal generation energy costs
- Marginal Transmission Capacity Costs
- Marginal Distribution Costs
- Marginal distribution customer-related costs
- Marginal distribution capacity-(demand)-related costs
- Determine appropriate costing periods
- Attributing costs to costing periods
- Adjustment of marginal costs for losses
- Reconciling marginal cost-based rates with revenue
3:45 Understanding the Wholesale grid and Transmission Connection
Discussant: Chris DeMarco, UW Madison
Case Discussion: The Physics of Electricity (Grid and Distribution)—Loading and unloading the grid and local distribution systems. In this section we will gain an understanding of what is needed to keep a grid running efficiently and reliably.
- Understanding LMPs: Price of electric power varies rapidly with time, updated every five minutes, and has the POSSIBILITY to vary radically by geographic location (where geography is associated with transmission grid connection points).
- How does the system deal with substantial variations in load due to renewable energy resource additions to the grid?
|Wednesday: Discussion Seminar: 8:30 – 12:30|
We will address three to five issues of concern that are nominated by the attendees. Experts that can be available are:
- Larry Vogt—Mississippi Power (Utility rate designer—engineering/economic perspective)
- Chris DeMarco UW Madison (Transmission and distribution—physics and economics)
- Dan Hansen CA Energy Consulting (CAEC) Rate Design
- Robert Camfield—CAEC (capital valuation, regulatory economics, wholesale electricity markets)
- Steve Braithwait—CAEC (Expert on load management issues and outcomes, forecasting, pricing and customer response)
Accommodations: On Lake Mendota, The Pyle Center
Following is the URL for you to provide to your conference participants which will permit them to make on-line reservations at the Lowell Center. Please provide this information to your participants for their use:
Please use this URL for booking online (case sensitive): http://bit.ly/wpui19aug
When calling to make reservations, your guests should refer to group code: WPUI
Please note your room block will be released four weeks prior to the arrival date. The room to the left is a Lakeview Room, $105/night (no taxes)