Wisconsin Public Utility Institute

Fundamental Course: Energy Utility Basics

October 13-17, 2008

Draft Agenda

October 13, Monday

Electricity: From the ground to the plug, physical characteristics

Fluno Center Auditorium

Time	Session Title	Topics—From the ground to the plug, physical characteristics	Speaker
7:30 – 8:30	Continental Breakfast
7:30 – 8:00	Registration
8:00 – 8:20	Introduction	Introduction to Institute Purpose of Course Logistics Attendee Introductions Review of Agenda	Sam Mahany Braithwait Wisconsin Public Utility Institute
8:20- 9:30	Converting Energy into Usable Power	From the candle flame to the light socket—the physics of creating electricity	Jim Blanchard UW Madison
9:30 – 10:45	Regional Transmission: Physical Flow	· Understanding power flow · What is a bus and why do you care · What is the difference between a contract path and a physical path · Pricing · Transmission risk · FTR uncertainties · Congestion pricing ·	Bernie Lesieutre UW Madison
10:45 – 11:00	Break
11:00 – 11:45	Markets and RTOs Financial flow	Three Stages of Supply: G, T, D Focus on Generation Technology: Nuclear, Fossil, Renewable, Distributed Markets: What are the roles and who manages: · wholesale markets, · retail markets, · capacity markets, · energy markets, and · ancillary service markets NEED Visual Aides	Ken Copp American Transmission Company LLC
11:45 – 12:30	A day in the Life of a Transmission Operator	Forecasting Contract Power Own Power Scheduling Process and who does what Monitoring Handing off to the distributor Settlement	Chuck Callies Dairyland
12:30 – 1:30	Lunch (60 minutes)
1:30 – 2:30	A day in the Life of a Distribution Company	How Local Distribution Works Distribution lines Substations Smart Grid Meters	Dave Krause Independent Consultant
2:30 – 5:30		Break—get our walking shoes on!
2:30 – 5:30	Hands-on Computer Exercise: And Plant Tour	We will break the group into two groups—one will first go to the computer hands-on exercise and the other to the plant tour, then, we will switch groups Plant tour Model simulation and refreshments Hands-on simulation to improve conceptual understanding of the energy industry’s complex system and specifically to observe the long term criteria for expansion planning and tradeoffs between cost, environment, safety and reliability.	Paul Meier Energy Institute
5:30	Adjourn

October 14, Tuesday

Electricity: Markets, stucture and players—residential to industrial

Fluno Center Auditorium

Time	Session Title	Topics—Markets, Stucture and Market Players—Residential to Industrial	Speaker
7:00 – 8:00	Continental Breakfast
8:00 – 9:15	Who’s regulated, why and how: the Federal and State Perspective	A Brief History of Regulation – Legal foundations including the regulatory compact, market failure, and the essential nature of service; jurisdictional coverage; and driving philosophies	Theresa Hottenroth Alliant
9:15-9:30	Break
9:30 – 10:15	The Public Service Commission	The Public Service Commission · Structure · Roles · What’s a docket · What’s a hearing · Ruling · Oversight	John Lorence Wisconsin Public Service Commission
10:15 – 10:30	Break
10:30– 11:30	Customer Expectations-Residential to Industrial	Customer perspectives on what customers expect their energy providers to deliver and at what price	Charlie Higley CUB Todd Stuart Wisconsin Industrial Energy Group
11:30 – 12:30	Lunch
12:30 – 2:00	Utility Finance Issues: The utility’s view—how do utilities make money	Balancing the needs of customers and investors Rate of return (it is not guaranteed!) versus rates	Allen Williams, Jr. Foley & Lardner
2:00 – 2:30	Break
2:30 – 3:30	Market Performance—Can it be measured?	What is a spot markets and can it meet short-term and long-term supply and financial objectives	Paul McCurley NRECA
3:30 – 3:45	Break
3:45 – 5:00	Utility Company Models-Panel Discussion	· Investor Owned Utility, · Municipal Utility, · Joint Action Agency, · Cooperative Utility · Stand Alone Transmission Companies · ISO How they’re set up and discuss different perspectives on the industry	Roman Draba We Energies John Schulze ATC Kenric Scheevel Dairyland Power Coop. Tom Paque WPPI Eric Williams MISO

October 15, Wednesday

Electricity: The customer side of the meter and ratemaking

Fluno Center Auditorium

Time	Session Title	Topics: Rates and Environment	Speaker
7:00 – 8:00	Continental Breakfast
8:00 – 9:15	Rate setting and Efficient Pricing	Revenue requirements · Operating expenses · Rate base · Capital structure The backbone of efficient pricing · Revenue issues · Revenue Decoupling and other strategies to address changes regarding revenues and energy sales · Cost of service	Mike O’Sheasy CA Energy Consulting
9:15 – 9:30	Break
9:30 – 10:30	Decoupling—Is this keeping the Utility whole?	Just what is decoupling Why is it a possible rate strategy for dealing with loss loads or revenues What are the different strategies currently in use—pros and cons	Dan Hansen CA Energy Consulting
10:30-10:45	Break
10:45-11:30	Pricing-Meeting Customer, Utility, Regulatory and Stakeholder Needs	Just What Are These Programs and do they Deliver? A review of a number of different pricing programs and their performance · TOU · Fixed Bill · Flat Billing	Jon Kubler Georgia Power
11:30-12:30	Lunch
12:30-2:00	Pricing continues	· Critical Peak Pricing · POLR · Fixed Bill as a Conservation Program	Jon Kubler Georgia Power
2:00 – 2:30	Break
2:30 – 4:00	Environmental Issues—Current Federal and State and Expected Federal and State Issues	Implications to electric generation. Concerns about CO2 emissions are driving the debates about fossil fuels, renewable energy, energy efficiency and renewed interest in nuclear energy. This session offers an overview of compliance and what it means to a utility company.	Kathy Lipp Alliant
4:00 – 4:15	Break
4:15 –5:00	Panel Discussion	The role of rates in meeting utility, customer and society objectives	Mike O’Sheasy CA Energy Consulting Dan Hansen CA Energy Consulting Jon Kubler Georgia Power Dan York ACEEE Kathy Lipp Alliant
5:00	Adjourn

October 16, Thursday

Electricity/Gas: Environmental issues and gas markets

Fluno Center Room 219

Time	Session Title	Topics: Environmental/Non-Carbon Emitting Resources and Gas Markets		Speaker
7:00- 8:00	Continental Breakfast
8:00 - 9:00	Building the Energy Efficiency Plant	Current initiatives Energy efficiency as a viable, cost-effective resource Demand response Smart Grid	Dan York ACEEE
9:00 – 11:30	Non-carbon emitting sources or generation	Wind Solar Biomass Nuclear Hydro	Don Wichert WEC Paul Wilson UW Madison
10:00 – 10:15	Break
11:30 – 12:30	Gas—Physical Characteristics	· Natural gas for electric generation · Access to known reserves · Domestic economic security	Alan Carroll UW Petro Geologist
12:30 – 1:30	Lunch
1:30 – 2:30	A day in the life of a Gas Company	· Contracting for gas : Fixed vs. market contracts-why the different and how they are priced · Demand forecasting day ahead, month ahead, year ahead and future-how each plays a role in gas supply · Trends in forecasting · Scheduling	Ron Mosnick WPS
2:30 – 3:00	Break
3:00 – 3:30	Contracting for Gas	Managing market risk	Ron Mosnick WPS
3:30 – 5:15	Market and Risk Issues	· Natural Gas Markets · International Market Issues · Pricing, supplies (including LNG) · Critical infrastructure protection and how it relates to pricing Where is risk coming from today and how is commonly managed · Capital investments · Fuel · Bond ratings · Weather · Hedging	Steve Engler Deloitte

October 17, Friday

Gas: Rates and future

Fluno Center Room 219

Time	Session Title	Topics—Gas Markets	Speaker
7:00 – 8:00	Continental Breakfast
8:00 – 10:45	The Wholesale side of gas—	Pipeline services and transportation Financial tools that management movement FERC’s role in wholesale gas markets Understanding the financial impact of wholesale markets on your customers gas bill	Ken Yagelski Concentric
9:15 – 9:30	Break
10:45 – 11:45	Coal to Gas: What are the impacts?	What if we move coal plants to gas plants—the full picture	Peter Taglia CleanWisconsin
11:45	Wrap up		Sam Mahany Braithwait