Basic Utility Cost of Service & Retail Rate Design

Monday, Jan. 30 – Tuesday, Jan. 31
Hotel Valley Ho
Scottsdale, Ariz.

Course Schedule
Monday, Feb. 8: 8:30 a.m. – 5 p.m.
Tuesday, Feb. 9: 8:30 a.m. – Noon

Recommended CEUs 1/PDHs 10.2/CPEs 12.2

Field of Study: Specialized Knowledge
For CPE Accreditation, this course is a group-live offering.

Technology Requirements
To participate fully in this class, please bring a calculator and a laptop with Excel and PowerPoint.

Course Overview
This course covers the basic concepts of utility costing and pricing using standard industry approaches. You’ll focus on electric cost of service and retail rate design using fully distributed, allocated cost methods and principles that are applicable to water, sewer, gas and other municipal services.

Learn where and how information is obtained, how a utility's costs are incurred, and how to develop allocation factors to reflect a utility's causation of the costs. Work through exercises to classify generation, transmission, and distribution service expenses and do a sample cost­of-service analysis in Microsoft Excel. Discuss standard rate forms and how they are used to send proper price signals and recover costs in a fair and equitable manner.

Course Topics
Click here
to see a sample agenda.

  • Identifying relevant terms associated with COS and the municipal services
  • Finding data sources and collecting appropriate data
  • Organizing costs
  • Municipal service functionalization of facilities and expenses
  • Demand, energy, and customer cost classification
  • Industry-standard classification techniques for generation types and use
  • Customers’ service voltage levels and cost allocation
  • Developing allocation factors for generation, distribution, and customer-related expenses
  • Developing administrative and general cost allocation factors
  • Determining the monthly customer facilities and billing charge using industry standard classification techniques
  • Interpreting the results of the cost-of-service study completed in class

Course Level
Basic. This course does not have prerequisites nor does it require advance preparation.

Who Should Attend
This is an introductory course for utility staff and policymakers involved in the costing and pricing of electric utility services. It covers basic concepts and methodologies surrounding traditional cost-of-service allocation and retail rate design.

About the Instructors
Phil Euler, P.E., is the manager of engineering services for NMPP Energy in Lincoln, Neb. Prior to joining NMPP Energy, Euler worked as an independent consultant, specializing in financial planning, cost-of-service studies and rate design for publicly owned utilities. He worked for the Lincoln Electric System for 30 years, specializing in the areas of financial planning, pricing, rate design and cost-of-service studies.
Dan Kasbohm is a rates manager for Utility Financial Solutions and has completed over 40 financial modeling and electric cost of service studies. Dan has over 10 years of experience in developing time of use rates, advanced electric rate design models, analyzing load research data, developing line extension policies and power cost adjustments.