Introduction to UTILITY PROFITABILITY
The course covers utility revenue, asset management, and financial operations, including rates and regulation.
The Introduction to Utility Profitability course provides attendees with a comprehensive understanding of how utilities generate revenue, manage assets, and operate financially. This interactive session covers essential concepts in finance, accounting, regulation, and billing that every electric utility professional should know, along with the evolution of business models in the industry. The course will begin with a brief overview of the electric utility model, followed by an in-depth exploration of topics such as capital assets, O&M expenses, depreciation, rates, risk management, balancing, and trading. Throughout the program, participants will engage in discussions on key financial concepts, profitable strategies, and best practices for responding to natural disasters and emergencies. Attendees are encouraged to bring questions, discussion topics, and personal challenges to share for a more enriching experience.
The Introduction to Utility Profitability course provides attendees with a comprehensive understanding of how utilities generate revenue, manage assets, and operate financially. This interactive session covers essential concepts in finance, accounting, regulation, and billing that every electric utility professional should know, along with the evolution of business models in the industry. The course will begin with a brief overview of the electric utility model, followed by an in-depth exploration of topics such as capital assets, O&M expenses, depreciation, rates, risk management, balancing, and trading. Throughout the program, participants will engage in discussions on key financial concepts, profitable strategies, and best practices for responding to natural disasters and emergencies. Attendees are encouraged to bring questions, discussion topics, and personal challenges to share for a more enriching experience.
- Review the unique ways utilities generate revenue, manage assets, and financially operate.
- Compare and contrast the different organizational models, such as IOU, Muni, Coop, and public, while exploring the specific financial distinctions and responsibilities of each.
- Examine how to differentiate between Capital Assets and O&M Expenses, depreciation and accelerated depreciation, rates, rate cases, and rate base.
- Discuss the economic implications of vertical integration, deregulation, and decoupling.
- Review stranded assets and explore how disruptive technologies and business models are changing the traditional utility model.
- Analyze how utilities budget for and financially respond to natural disasters and other emergencies.
- Learn how to decipher an electric bill, calculate the cost, and identify areas to save money.
- Explore how financial resources are secured when a utility needs to invest in capital assets.
- Recognize why utilities are risk-averse and discover methods to mitigate risk.