Virtual Course

Cost of Service Workshop: Implementation and Applications

Explore the ins and outs of cost-of-service—from key concepts to the nuts and bolts of working through a cost-of-service analysis. Learn how to apply cost-of-service and rate design principles and processes, hear best practices, and review case studies.
February 2 - 9, 2020
12:00pm EST - 3:30pm EST

Virtual Training

Join us on February 2 and 9 as we debut this popular course as two, 3.5-hour interactive virtual sessions (on Zoom). It’s a convenient way to 'attend', while still having the opportunity to interact with the instructors, network with your industry peers, and earn continuing education credits. This course combines real-time presentation, small group breakout sessions, case studies, and Q&A sessions.

Timing

Participate in two, real-time sessions from Noon – 3:30 p.m. Eastern on February 2 and 9. There will be a 15-minute break incorporated into each session. 

Course Overview

Explore the ins and outs of cost-of-service—from key concepts to the nuts and bolts of working through a cost-of-service analysis. Learn how to apply cost-of-service and rate design principles and processes to electric, water, sewer, gas, and other municipal services. Work through the step-by-step process of putting an electric cost-of-service study together and review how to develop a fully functional and unbundled cost-of-service sample model. As you explore the elements of thorough cost analysis, you will gain several lessons learned from real-world examples and group discussions.

Course Topics

  • Cost-of-service and pricing concepts, terminology, and processes
  • Collecting and using cost-of-service data
  • Identifying, collecting, and organizing costs
  • Allocating municipal facilities and expenses
  • Classifying generation, transmission, and distribution expenses
  • Categorizing generation types and primary cost components
  • Collecting and applying load research data
  • Developing cost allocation factors
  • Gauging customer voltage levels and cost allocation
  • Applying cost allocation factors in a cost-of-service model
  • Determining monthly customer facilities and billing costs
  • Identifying bundled and unbundled primary cost components
  • Applying cost-of-service components to rate designs
  • Understanding the limitations of a traditional cost-of-service model

Sample Agenda

Part 1: Feb. 2

Noon
Course introduction, agenda and learning outcomes

12:15 p.m.

  • Section 1: Role of Rates and a Cost of Service Study
  • Section 2: Key Concepts, Nomenclature, and the Importance of a Rate Study
  • Section 3: COS Process and Approach

1:30 p.m.
Break

1:45 p.m.

  • Section 4: Study Preparation
  • Section 5: Revenue Requirements
  • Section 6: Functionalize Expenses & Ratebase

3:15 p.m.
Wrap up and Q&A

3:30 p.m.
Part 1 Adjourns

Part 2: Feb. 9

Noon
Recap from Part 1, review agenda and learning outcomes for Part 2

12:15 p.m.

  • Section 7: Classify Expenses & Ratebase into demand, energy and customer related categories
  • Section 8: Develop Allocation Factors that are fair and equitable using available data

1:30 p.m.
Break

1:45 p.m.

  • Section 9: Assign allocation factors to expense and ratebase cost categories
  • Section 10: Summarize results to effectively communicate study outcomes and next steps

3:15 p.m.
Wrap up and Q&A

3:30 p.m.
Course adjourns

Recommended For

Senior leadership, finance and accounting personnel, rate analysts, financial planners, policymakers and utility staff who are responsible for implementing cost of service studies or want to learn how the process is completed and applied.

Course Level

Basic: No prerequisites; some advance preparation. The instructors request that you send a copy of selected rate schedules for your service area in advance of the class, for sharing and discussion. 

Technology Requirements

  • Attendees are required to have strong Internet access, in order to run the Zoom meeting platform.
  • You will need to enable computer audio to listen and speak (alternatively a call-in number will be provided) and it’s also recommended that you have a webcam, so you can fully engage in the small group breakout exercises. 
  • It’s also recommended that you have Excel and PowerPoint installed on your computer. Attendees will get access to a sample Excel model, which provides a chance to have some hands-on experience (outside of class) and apply the cost-of-service and rate design principles and processes you’ll learn.

Course Materials

  • Zoom log in credentials will be sent out the day before class.
  • Attendees will receive access to APPA’s secure electronic document portal a week before the course, where the eManual will be made available. The sessions will be recorded and can also be accessed through this portal, in case you can’t attend the live version.

Accreditation

The following continuing education credits will be provided, after successfully completing both live sessions. Certificates will be emailed out by February 16. These sessions will be recorded, though certificates can only be awarded to those who participate in the live events (click here to review requirements).

Recommended CEUs .7/PDHs 6.5/CPEs 7.8 (for both sessions)
Field of Study: Specialized Knowledge

Instructors

PEPhil Euler is an independent consultant specializing in financial planning, cost-of-service studies and rate design for publicly owned utilities. Phil’s industry experience includes 13 years as the manager of engineering services for NMPP Energy in Lincoln Nebraska and 30 years with the Lincoln Electric System, where he specialized in financial planning, pricing, rate design, load research, forecasting and cost-of-service studies.

DKDan Kasbohm is a rates manager for Utility Financial Solutions where he has completed numerous financial modeling and electric cost of service studies since he began in 2008. His specialties include developing advanced industry rates such as residential demand, time of use, LED lighting, and electric vehicle charging. Dan also has experience in policy development for customer line extensions, street lighting, power cost adjustment mechanisms, and economic development considerations. 

 

Questions?

Contact us at [email protected].

Register Now

Registration fees:

  • $575 for members
  • $1,150 for nonmembers

Not a member? Join today and save on your course registration. Call Member Services at 202-467-2926 to learn more.

Group Discounts

Save an additional $50 on each when your organization registers 5 or more people. The larger your group, the more you save!

Number of registrants

Discount
(per person)

Member
Registration Fee

Nonmember
Registration Fee

1-4

n/a

$575

$1,150

5-10

$50

$525

$1,100

11-15

$100

$475

$1,050

16+

$150

$425

$1,000

Cancellations/No-Show/Refunds/Substitutions

Contact [email protected] for more information and to request the group registration form to receive this special discount.  

Registrants who cancel in writing on or before January 27, 2021, are entitled to a refund of their registration fee, minus a $50 cancellation fee. Registrants who cancel after January 27 will not receive a refund, but attendee substitutions will be allowed for this event only. Registrants and no-shows who do not cancel by January 27 are responsible for the full registration fee and are not entitled to a refund. Email your cancellation request to [email protected].

Questions?

Contact [email protected].

Earn While You Learn!

Participate in virtual programs to earn Continuing Education Units (CEUs), Professional Development Hours (PDHs) and Continuing Professional Education credits (CPEs). This event is eligible for the following credits:

Recommended CEUs .7/PDHs 6.5/CPEs 7.8 (for both sessions)
Field of Study: Specialized Knowledge

What educational credits are available?

You can earn the following kinds of continuing education credits for attending live sessions during this event—provided the following requirements are met:

Requirements for Successful Completion

  • Attendees are required to attend and participate in 90% of the live event and complete an online evaluation at the end of the session
  • Partial credit cannot be given for partial attendance
  • Attendance is monitored by an APPA staff member during the event, through an online report log, and upon review of the post-event evaluation data
  • Completion certificates will be emailed out within one week of a live event (for those who meet the requirements)
  • Virtual sessions are recorded (attendees automatically receive access to recordings within a week of a live event), though continuing education credits can only be given for attending live events

 

 

IACET logoContinuing Education Units (CEUs) - The American Public Power Association is accredited by the International Association for Continuing Education and Training (IACET) and is authorized to issue the IACET CEU. For information regarding certification status, attendance requirements and obtaining attendees transcripts, contact [email protected] or 202-467-2965. Verify our IACET Accreditation.

CPE logoContinuing Professional Education (CPE) Credits - The American Public Power Association is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. Unless noted, there are no prerequisites for the courses offered and no advance preparation is required. Courses are group-internet based offerings at the basic program level (unless otherwise noted). Credit hours and areas of study for the courses are listed on the individual course pages. For more information regarding administrative policies, such as clarification of requirements, complaints, and refunds, please contact [email protected].

Professional Development Hours (PDHs) -  The American Public Power Association’s educational practices are consistent with the criteria for awarding Professional Development Hours (PDHs) as established by the National Council of Examiners for Engineering and Surveying (NCEES). Course eligibility and number of PDHs may vary by state.

Format and Log-In Information

This class will be offered on the Zoom meeting platform. Presented in two interactive sessions, featuring real-time presentations, small group breakouts, case studies, and Q&A sessions.

You’ll receive a logistics email one week in advance of the class

You will receive your Zoom access link the day before the course from the APPA Academy <[email protected]>. Please reach out to [email protected] if you do not receive that email.

New to Zoom?

If you haven't participated in a Zoom meeting before, please download the Zoom web client from the Zoom Download Center. This will enable you to access all of the Zoom tools and functionality vs. using the web version. For the course, you will need an Internet connection and sound (we recommend using your computer’s audio and microphone, though a phone number will also be provided). Then, visit Zoom.us/test to ensure you are able to join a meeting. 

If you are not able to download the Zoom web client, you can still participate via your Internet browser. We recommend using Chrome for the best results. If you use your Internet browser, your functionality may be more limited (for example, you will only be able to see one video feed at a time), and you will need to create a Zoom account. (Account creation is a free and straightforward process, but you will want to do this in advance so you do not miss any part of the meeting).

Privacy and Security

The American Public Power Association takes your privacy and security very seriously. For this reason, we have put the following security measures in place for this course:

  • A random Meeting ID
  • Password-protected
  • Enabled waiting room to screen meeting participants
  • Restricted screen sharing to hosts only

Code of Conduct

Participants agree to abide by the APPA Code of Conduct. If participants engage in unacceptable behavior as outlined in the code, the Association may take any action it deems appropriate, including but not limited to, expulsion from the current and future meetings, with no warning or refund.

Questions

Contact us at [email protected].