Beginner's Guide to Designing Electric Rates | Utility and Co-op CPE Nuggets

How are electric rates designed to recover the utility or co-op's cost to serve customers? This course builds on the development of the budget (revenue requirement) and shows you how the cost to serve customers may not always equal what they are charged (and why).

How are electric rates developed?

Electric rates are developed based on the amount of revenues needed to run the utility or co-op for a period of a year. But first, the budget must be determined, then a study is done to determine which customers are driving electric costs and should pay for them (called the cost of service study). This 20- minute “Utility & Coop CPE Nugget” discusses the cost of service piece of the process and the strategy needed to develop an effective electric rates. If you are a Board or management member charged with reviewing and approving electric rates, or a utility or cooperative team member who provides inputs into electric rate studies, this course will make you an expert on this topic and help your understanding of the rate process and your role in its success.
Electric rate approval process

What you'll learn in this course

  • You'll learn where the amounts used in the cost of service study come from

  • We'll demonstrate how "load curves' are a key component in determining the costs to serve customers

  • We'll discuss the main allocators in a cost of service study

  • We'll discuss the "art" and the "science" in rate design

  • You'll learn the direct questions to ask to make management and board decisions on approving electric rates proposed by management and/or consultants

  • In this 22 minute class you’ll earn 0.44 continuing professional education credits.

This course is for you if

  • You are a Board member and want to know how to review financial and rate reports and what questions to ask before approving electric rates

  • You are a new electric cooperative or utility employee who prepares information for rate studies

  • You are an electric utility Board Member or new employee and want to learn how the electric rate development process works

  • You are a rate study report preparer and want to gain perspective on presenting reports to a non-technical audience

  • You are an auditor of electric utilities or cooperatives and want high-level insights into how electric rates are developed

Take the course today, benefit your organization, and build your knowledge and value!

Meet your instructor!

Russ Hissom, CPA

Russ Hissom, CPA, is the owner of Utility Accounting Education Specialists (UAES). He has over 35 years of utility industry experience, serving as a partner in a national public accounting and consulting firm’s energy practice. Russ has worked with electric investor-owned and municipal utilities, and electric cooperatives, learning and leading industry best-practices. Russ brings this wealth of knowledge to every course, article, and book he develops. His speeches before national utility organizations share insights into helping utilities become more efficient and prepare for the “power and utilities organization of the future”. His goal is to provide value to you as an individual in your career development and to your utility/cooperative in these industry-focused areas.

Who should take this course?

  • Electric utility and cooperative board members

  • New electric utility and cooperative employees

  • Finance managers

  • Utility/coop budget personnel

  • Utility rates analysts

  • Auditors of electric utilities and cooperatives

What background should I have to take this course?

  • No background in electric ratemaking or studies is needed.

  • Some introductory knowledge of the electric industry is not necessary, but can help you experience more benefits from the course.

  • This course is designed to help you understand the process of developing electric rates. It will be a great aid especially if you provide provide inputs into a study or are charged with approving electric rates at your electric utility or cooperative.

What you'll get from this course

  • Course resources

    Over 20 + pages of course materials, including detailed examples and reports

  • Continuing Education Credits - CPE

    0.44 credits of CPE - Final approval of a course for CPE credits is based on the requirements of each states’ regulatory body

  • Analysis and insights

    Flowcharts and analysis insights provide the backdrop for better understanding of the process and your role in approving electric rates

Take the course today, benefit your organization, and build your knowledge and value!

Watch Intro Video

Course Highlights

Course Overview

  • 1

    Utility & Co-op CPE Nugget | Beginner's Guide to Designing Electric Rates

    • Utility and Coop CPE Nugget | Beginner's Guide to Designing Electric Rates

    • Beginner's Guide to Designing Electric Rates - Summary Quiz

Take the course today, benefit your organization, and build your knowledge and value!

Complete one course and any future courses are 25% off!