Industry
Energy Regulation Fundamentals
An overview of the principles of regulation of market participants in the natural gas and electric industries
In this one and one-half day seminar you will learn the basics of natural gas and electricity regulation. If you work in any part of the gas or electric business, what you do is influenced in one way or another by regulation. And a thorough understanding of how the regulatory process works and impacts market participants' ability to make money can easily make the difference between success and failure.
You will learn who the state and federal regulators are, who regulates what, why regulation exists, how proceedings work, the basic principles of cost-based and incentive regulation, and the goals of deregulation. The course also explains the ratemaking process step-by-step and discusses how companies make money in regulated markets.
This course was designed with your participation in mind! Questions and discussion among attendees are highly encouraged. And you will participate in a number of group exercises that will give you a real-world perspective of how the regulatory process actually works. You will leave this information-packed seminar with relevant and current information that can be applied immediately to your work!
Prerequisites: None. However a basic knowledge of the gas and/or electric industry will be helpful.
Contact us at 866-765-5432 or 'info' for more information.
No dates are currently scheduled for this seminar. Please Contact Us for more information.
Is Energy Regulation Fundamentals the right seminar for me?
If you need an understanding of energy regulation; who regulates what, how proceedings are structured, and how regulation impacts market participants, this seminar is for you! Many energy professionals spend years in the industry before they truly understand how regulation works. This is your chance to understand these important principles now! Whether you are new on the job or an industry veteran, you will benefit from the insights and information you will receive in this class.
While anyone with a connection to the electric power or natural gas business should consider this fundamental seminar, here are the types of employees who have found this class especially helpful to their continued success in the industry:
- Experienced natural gas and electric company employees who have limited knowledge of regulation
- Experienced professionals moving into the energy industry
- Recent hires into regulatory positions in gas and electric companies
- Energy professionals from departments such as operations, engineering, information technology and customer services who are becoming active in regulatory proceedings or who have interaction with regulators
- Gas and electric company supervisors and managers who will oversee participants in regulatory proceedings or interact with regulators
- Finance, legal, public relations, and regulatory professionals needing a better understanding of gas and electric regulation
- Recent hires at state or federal regulatory agencies
- Recent ISO/RTO hires who need to understand the regulatory parameters under which ISOs operate
How will Energy Regulation Fundamentals help me?
After participating in this seminar, you will return to your job with a solid understanding of how the regulatory process works, how rates are set, how regulation impacts the energy business, and how it creates opportunities and limits for market participants. This knowledge will empower you to better participate in the regulatory process, to successfully interact with regulators, to decipher the impacts of specific regulatory decisions, and to understand the ongoing role of regulation in competitive markets.
In one and one-half information-packed days, this dynamic course will provide you with a solid understanding of:
- Who the regulators are
- What they regulate
- Why regulation exists
- The basic types of regulatory cases and proceedings
- How regulatory proceedings work
- How cost-of-service rates are set and the importance of the revenue requirement
- Alternatives to cost-of-service rates including incentive regulation and market-based rates
- What deregulation is and how it works
- The future of energy regulation
Introduction
- What is regulation?
- Which industries are regulated and why?
- Which types of energy companies are regulated (natural monopoly, essential facility, market power) and why?
- Why do energy companies care about regulation?
Basic Concepts of Regulation
- The history of regulation (state and federal)
- The state and federal regulatory compacts
- The goals of regulation and potential conflicts among them
- The role of legislators and regulators
- How federal regulations are set (Congress and FERC)
- Who FERC regulates
- The FERC organization and structure
- Key FERC decisions
- How state regulation works (state legislature and regulatory commissions)
- Who the state commissions regulate
- The organization and structure of state commissions
- The role of various market participants in the regulatory process
- Who is regulated and how in natural gas and electricity
Concepts of Deregulation / Restructuring
- What is deregulation/restructuring?
- How unbundling works in gas and electric markets
- The key factors required for competitive wholesale markets
- How regulators monitor for market power
- The key factors required for competitive retail markets
- Who provides needed services in a deregulated world?
- Mechanisms for transition to unbundled markets
- The history of gas and electric deregulation
- Which states offer supply choice (gas and electricity)
Regulatory Proceedings
- The purpose of proceedings
- Similarities and differences from legal proceedings
- Who is responsible for initiating cases?
- The regulatory case process, detailed step-by-step
- The participants in a proceeding and their roles
- Proceedings initiated by regulators (NOPR, NOI, Investigation, Rulemaking)
- Proceedings initiated by regulated energy companies (Rate case, cost of capital, rate adjustment, certificate case, merger and acquisition)
- Proceedings initiated by consumers or market participants (complaints, petitions)
Ratemaking
- Cost-of-service ratemaking initial steps
- Cost-of-service study
- Forecasting costs
- Cost functionalization
- Capital vs. expense items
- Cost classification
- Rate base
- Cost of capital/rate of return
- The cost-based ratemaking process
- Determine billing determinants
- Determine revenue requirement
- Allocate revenue requirement to customer classes
- Determine rate design
- Allocate revenues within customer classes to specific rate components
- Calculate rates
- Incentive regulation
- How incentive ratemaking works
- Reasons for incentive ratemaking
- Various forms of incentive regulation
- Market-based rates (prices)
- When market-based is used
- The need for regulators to monitor markets to ensure prices are just and reasonable
Making Money in Regulated Markets
- How does a regulated company make money?
- How earnings can be increased under traditional regulation
- Earnings risks under traditional regulation
- Decoupling revenues from earnings
- How companies earn money under incentive regulation
- Earnings risks under incentive regulation
- Increasing earnings and inherent risks under market-based regulation
The Unique Case of Regional Transmission Organization (RTO) Regulation
- Regulatory principles for RTOs
- 4 minimum characteristics for an RTO
- How FERC regulates RTOs
- RTO rate concepts
Evolution of Regulation
- Major regulatory trends
- Future issues for regulators
"The understanding of the regulatory process is invaluable!"
Danielle S
Calpine
“Valuable interactive discussions and real-world examples.”
Group discount
Attend this seminar with your workgroup and you can save up to 25%. For every three people from the same company who attend this course, the fourth is free!
Networking reception
In addition to all you will learn, this seminar is also a great networking opportunity. We offer a hosted reception the first night of your course, which gives you the opportunity to continue networking with colleagues in a casual and comfortable environment. This is a great opportunity to develop valuable new relationships with peers in other companies and agencies.
Course length
One and one-half days
Prerequisites
None. However a basic knowledge of the gas and/or electric industry will be helpful.
Seminar times
This seminar begins at 8:30 each day, and ends at 5:00 the first day and noon the second day. But feel free to come early to enjoy complimentary breakfast, ask questions of your instructor and network with other class participants.
Registration fee
$1095 (save $100 - only $995 if paid three weeks prior to seminar). This fee includes continental breakfast, lunch and morning and afternoon breaks. The fee also includes course materials and a networking reception the first night.
Cancellation policy
All class sizes are limited and your place in class is held exclusively for you. Registrations cancelled two weeks or more prior to the seminar date will receive a full refund minus a 10% administrative fee or a credit for 100% of the registration fee good towards any other Enerdynamics product. Registrations cancelled with less than two weeks notice but more than two days notice will receive a credit for 100% of the registration fee good towards any other Enerdynamics product. Registrations cancelled with less than two days notice are not eligible for refund or credit. Substitutions may be made at any time and without additional cost.
Contact us at 866-765-5432 or 'info' for more information.
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CPE credits? Absolutely!
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Bring this seminar onsite
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No risk to you!
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