A surprising number of utility employees do not understand how their utility makes money! How Utilities Make Money explains the basics in simple and easy-to-understand terms. The course introduces basic financial concepts for a non-regulated company (a lemonade stand) and then compares these concepts to those that apply to a regulated utility. The course also explains the basic concept of utility regulation and why a utility operates under rules different from non-regulated companies. It also explains how rates are set such that the utility has the opportunity to collect enough to cover projected expenses as well as a reasonable return on its equity. The course concludes with real world examples of how ultimate results can differ from what was authorized by the regulator. It includes practical examples and exercises to help learners understand basic financial concepts and the unique way in which utilities earn a profit.
This course comprises the following modules:
- Business Basics for Competitive Companies
- How and Why Utilities Are Regulated
- Business Basics for Regulated Utilities
- How Utility Rates and Earnings Are Determined
- How Utilities Can Exceed or Fall Short of Authorized Earnings
Contact us at 866-765-5432 or e-mail for more information.