Two-Day Seminar on Cost of Service and Electric and Gas Utility Rate Design (Naples, USA – May 17-18, 2022) –

the “Cost of Service and Tariff Design for Gas and Electric Utilities” training has been added to from offer.

Understanding gas and electric utility rates and their relationship to utility profits doesn’t have to be confusing.

Master the fundamentals of energy pricing and learn the financial and accounting differences between regulated and unregulated companies with this comprehensive course. This is a “must do” seminar for anyone new to the utility industry or affected by the utility pricing process.

What you will learn

  • Plain English explanations of many gas and electric regulatory terms and concepts, and how the federal and state pricing process works.

  • How gas and electricity pricing practices vary between investor-owned utilities, municipal utilities, cooperatives, and how these pricing practices impact unregulated energy distributors.

  • The jargon used in the regulatory process, so you can understand each step of a tariff case.

  • Why utilities file rate cases and the types of analysis they perform to support their proposals.

  • The difference between cost of service and market-based pricing, and how those pricing is applied.

  • How the different federal and state rate case procedures work, and how they differ.

  • What are the different cost elements of the base rate case and how they are determined.

  • The Financial Drivers of Regulated Utilities and Their Differences from Unregulated Companies

  • How to improve utility profitability through the pricing process.

  • How different types of tariff structures are designed in tariff procedures

What you will also learn

  • The particularities of the different tariff structures for natural gas and electricity; how to read a tariff; and how to analyze a gas and electric bill.

  • What pricing structures benefit customers and suppliers, and when.

  • How tariff structures are designed and applied in deregulated environments.

  • How to calculate comparisons between regulated and deregulated supply purchases.

Main topics covered:

First day (morning – 4 hours):

  • Conduct a thorough review of the gas and electricity industries from a regulatory perspective.

  • Discuss the key regulatory changes that created today’s energy market.

  • Review the fundamental concepts of gas and electricity tariffs and retail pricing.

  • Explain how the rate base and rate of return are determined.

  • Explain how the items are classified as operating expenses or capital expenses.

  • Explain the federal and state rate case processes involved for both base rate increases and fuel adjustments.

  • Discuss the various rationales used to request changes to gas and electricity rates.

First day (afternoon – 4 hours):

  • Review current issues encountered in implementing open-access marketplaces and customer choice programs today.

  • Examine the important issues that create friction between utilities and energy distributors from both perspectives.

  • Complete a gas/electricity case study exercise that addresses specific issues selected by the class.

  • Discuss the merits of the important issues contained in the case study using the active participation of class participants.

Second day (4 hours):

  • Interpret a variety of gas and electricity rates to master bill analysis techniques.

  • Perform multiple bill analyzes with gas and electric bills for groups of residential, commercial and industrial customers.

  • Illustrate the differences between different gas and electricity tariffs using case studies of different billing applications.

  • Apply the results and lessons from the case studies to real-life situations.

  • Continue with the invoice and tariff analysis using examples of actual invoices and selected situations from course participants who were submitted in advance.

  • Review several additional examples of increasing pricing complexity as time permits.

  • Produce a comparative analysis of bundled and unbundled tariffs using current electricity and gas pricing examples.

  • Illustrate how the economics of tariff design are applied in competitive energy markets.

For more information on this training, visit