Course Description

Setting rates is a critical function of regulators and utilities and serves as a key factor in the success or failure of utility operations. IP3 has designed an introductory online training course to address these important issues. In this course, Fundamentals of Utility Tariffs: Determining Revenue Needs and Structuring Rates, participants will explore strategies and policies of rate development and setting as well as explore through online discussion examples that illustrate how rates are calculated in different sectors and countries.

This course contains six modules, each module conducted over a six-week period of time. Participants will be responsible for completing reading assignments, analyzing case studies, actively participating in discussion boards and chat rooms with fellow participants and the course instructor, and completing an action plan.
Participants will need access to a computer with Internet connectivity. Course work is approximately 5-6 hours per module.

 

IP3’s team of training experts offers practical experience with top presentation skills. Participants who successfully complete the course requirements will receive a Certificate of Achievement.

 

By the end of the course, participants will have achieved the learning outcomes provided below.

Learning Outcomes:

• Evaluating principles of developing rates
• Evaluating financial analysis techniques
• Evaluating the process of determining revenue needs for infrastructure services from the regulatory perspective
• Analyzing the principles behind designing rates
• Analyzing the emerging trends in tariff setting and utility finance
• Engaging in online group discussions with peers and experts from around the globe
• Creating your own Action Plan to implement on-the-job
• Take this valuable and pioneering “Introductory to Rate Setting” course right from your home or business, on your schedule and at your pace

Outline

 

Course Module Topics
Module I:	Current Trends of, and Introduction to Rate Development Learning the basic tools Rate setting for state-owned and privately-owned utilities: Are there differences? Strategies to transition to cost-recovery models Integrating government policies into the design of rates
Module II:	Financial Analysis: Planning Requirements for Utilities Using financial statements: the balance sheet, income statements and statement of changes in cash condition The use of ratio analysis to compare utilities’ performance Using trend analysis to track a company’s progress
Module III:	Setting the Revenue Requirement Review of options: price-cap; rate-of-return (ROR); cash-needs; revenue cap Understanding the strengths and weaknesses of each approach Determining utility input requirements and establishing the revenue requirement
Module IV:	Designing Rates: Strategies and Techniques The function of individual rates Establish rate design objectives Options for improving affordability and reducing subsidies Categorizing costs: customer costs, volumetric and demand/capacity costs
Module V:	The Rate Change Process Designating the entity responsible for changing rates: options and impacts Establishing the frequency of rate changes Ensuring transparency in the process Developing modalities for public/stakeholder participation
Module VI:	Emerging trends in Regulation and Rate Setting Understanding the drivers of change Performance/incentive-based regulation: What is it and how can it be applied? Determining the impacts on different customer classes
Module VII:	Case Study Analysis
Module VII:	Action Planning

 

Requirements for Completing the Course

Setting rates is a critical function of regulators and utilities and serves as a key factor in the success or failure of utility operations. IP3 has designed an introductory online training course to address these important issues. In this course, Fundamentals of Utility Tariffs: Determining Revenue Needs and Structuring Rates, participants will explore strategies and policies of rate development and setting as well as explore through online discussion examples that illustrate how rates are calculated in different sectors and countries.

This course contains six modules, each module conducted over a six-week period of time. Participants will be responsible for completing reading assignments, analyzing case studies, actively participating in discussion boards and chat rooms with fellow participants and the course instructor, and completing an action plan.

Participants will need access to a computer with Internet connectivity. Course work is approximately 5-6 hours per module.