Beginner's Guide to Developing Electric Rates

The electric rate process starts with developing a budget, determining how customers are causing costs by their use of electricity, then designing electric rates. This class walks you through the process.

How does the electric ratemaking process work?

The process follows a path of developing the co-op or utility budget (revenue requirement), cost of service analysis, electric rate recommendation, oversight board discussion and approval. 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 gives a high-level overview of the process and your role in its success.
Electric rate approval process

What you'll learn in this course

  • You'll learn about the components of the revenue requirement

  • We'll demonstrate how the rate of return is used to determine the return on ratebase

  • We'll discuss how the revenue requirement feeds the cost of service study

  • High-level cost of service principles will be reviewed

  • We'll discuss electric rate philosophy and its relation to the cost of service to customers

  • You'll learn the direct questions to ask to make management and board decisions on electric rate adjustments

  • In this 30 minute class you’ll earn 1.24 continuing professional education credits.

This course is for you if

  • You are a Board member or new employee and want to find out how the ratemaking process works

  • 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 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 30 + pages of course materials, including detailed examples and reports

  • Continuing Education Credits - CPE

    1.24 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

6 videos with reference materials

  • 1

    Beginner's Guide to Developing Electric Rates

    • Welcome to the class!

    • Here's a tour of the course player!

    • Course Introduction - What will I learn from this class?

    • Main course materials - Introduction to electric ratemaking - the process

    • What questions should a Board Member or management ask?

    • Course summary and key takeaways

    • Wrap-up Quiz - Electric Utility Ratemaking - Introduction

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

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