EEI Advanced Ratemaking Course 2009


EEI Electric Rate Advanced Course:  Rates to Meet New Market Opportunities and Constraints

July 26-29, 2009
University of Wisconsin
Madison Fluno Center for Executive Education
Madison, WI

EEI’s 2009 Electric Rate Advanced Course teaches students ratemaking tools to meet today’s business challenges. This year, the curriculum has been updated to address:

  • 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.

The curriculum contains state-of-the-art guidance on the design of efficient (“smart”) rates, and the use of alternative regulatory mechanisms to smooth rate trajectories and mitigate customer impacts in increasing cost environments.

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.

Register by June 18 — Second registrants will be at half price


Sunday, July 26

  • Refresher Workshop – This optional pre-course workshop will give students an overview of costing and pricing concepts.  It is designed for students who need a refresher on embedded cost of service studies, and basic rate design.

Monday, July 27

  • Team Assignments — Students will be assigned to teams that develop and present regulatory strategies as the conclusion of the course.  Each team will be presented with a set of real-life issues their strategy must address, and will be instructed to draw on class room presentations to configure their strategies.
  • Cost Allocation – 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).
  • Energy Efficiency and Renewables – Rate mechanisms and policies needed to deliver energy efficiency services on a sustainable basis (e.g., DSM trackers, decoupling mechanisms, fixed/variable rate design, business models – shared savings, rate base premium return, virtual power plant, performance contracts), and issues associated with rate policies to encourage renewable resources (e.g., feed in tariffs, net metering, DG interconnection procedures).
  • Designing Efficient Rates – The role of efficient price signals in guiding efficient consumer consumption and industry investment decisions and the drivers for adopting efficient pricing.

Tuesday, July 28

  • Application of Efficient Rates – The design along with examples of time-differentiated (dynamic) rates, and effective pricing for risk management.
  • Cost of Capital – Increases in the cost of debt and equity and the growing challenges of estimating cost of equity with traditional methods (DCF, CAPM).
  • Customer Perspective – New customer perspectives on energy policy, rates, pricing, and what this means for developing effective regulatory and marketing strategies.
  • Alternative Regulation – Alternative approaches to regulating traditional vertically integrated utilities and power distributors in an era of increased investment needs and slower demand growth.  Includes discussion of multi-year rate plans, revenue decoupling, formula rates, CWIP in rate base, accelerated depreciation, and capex trackers.
  • Regulatory Strategy Workshop – Students break into teams to craft regulatory strategies that respond to scenarios that reflect today’s business conditions.  Separate scenarios for traditional vertically integrated utilities and power distributors.

Wednesday, July 29

  • 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.

Registration Information

The registration fee for this course is $1,900, and includes all instruction, course materials, meals and receptions. (Note: dinner is not provided on Tuesday night so students can enjoy dinner out on the town.)

Registration is limited to 35 attendees to assure optimum interaction between participants and the course leaders.   The second registrant from each participating utility can attend at half price.

  • Please register online at :
  • EEI has a redesigned website with new login procedures.  In the past, our members used one ID and password per company. These no longer work. All members should use their e-mail address and last name to log in (initial cap – case sensitive).   Web site visitors not in our database should contact our Member Services department at to have a record created for them.

Continuing Education Credits

The course offers the following continuing education credits for students attending the pre-course workshop.

22   CLE Continuing Legal Education

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:

19   CLE Continuing Legal Education

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 26 through Wednesday, July 29, 2009 at the University of Wisconsin-Madison in the Fluno Center for Executive Education in Madison, WI.  The course is sponsored by, and developed in cooperation with, the Edison Electric Institute Rates and Regulatory Affairs Committee.

A block of rooms has been reserved for us at the Fluno Center for Executive Education at the University of Wisconsin-Madison until June 18th.  The rate is $144/night.  To ensure the availability of a room, please make your reservations before June 18th by calling (877) 773-5866, or go on-line:  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.  For the fifth consecutive year, the Financial Times of London has ranked the Fluno Center in the top 2 worldwide for food and accommodations for custom programs.

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