How a Utility Makes Money

PURPOSE:

This one-day, instructor-led course covers basic utility finance and rate-making.  Participants learn the basic concepts of finance and rate-of-return regulation, and how to use them to explain their company’s corporate strategy and the specific challenges it faces.

WHO SHOULD ATTEND:

All employees at a regulated utility will benefit from taking this course.  To achieve the most from the course, participants would ideally have either 10 years of energy industry experience or a four-year college degree and at least 3 years of energy industry experience.

CONTENT OVERVIEW:

This course covers the following:

  • The three major financial statements
    • Income statement
    • Balance Sheet
    • Cash Flow Statement
  • Return on Equity (ROE) and its components
    • Net Income Percent
    • Asset Turnover
    • Financial Leverage
  • Capital Investment Analysis
    • Capital Analysis Process
    • Present Value (PV)
    • Net Present Value (NPV)
  • Rate-of-Return Rate-Making
    • Rate Base
    • Return on Rate Base
    • Revenue Requirement
    • Optional : Modifications to Rate-of-Return Rate-Making Specific to Your Service area

CUSTOMIZATION:

The content of this course, as well as the examples and exercises, can be customized to meet your specific training needs.

Course Description and Outline

Email us at mortherald@excidian.com or call 304-312-5640 to discuss this course in greater detail and determine if it will add value to your leadership development curriculum.

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