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INFRASTRUCTURE REGULATION SERIES
How You Will
Benefit:
- Understand the principles of developing rates
- Learn standard financial analysis techniques
- Understand the process of determining revenue needs for
infrastructure services from the regulatory perspective
- Learn the principles behind designing rates
- Understand the process for setting and changing
rates
- Learn about the emerging trends in tariff setting and
utility finance
- Participate in online group discussions with
participants and experts from around the globe on the benefits, methods, and
strategies of regulation
- Develop an Action Plan on how you will use the
knowledge to improve your job skills, help your organization and enhance your
value in the marketplace
- Take this valuable and pioneering "Introduction to Rate
Setting" course right from your home or business, on your schedule and at your
pace
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| Who Should Attend |
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Government, utility,
regulatory, private sector, university, donor, non-profit, and banking industry
professionals who have:
- Limited experience with tariff structuring and
financial analysis
- Computer/typing skills and with reliable
Internet connectivity (45K modem or higher)
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Course
Learning Objectives
Setting rates is
a critical function of regulators and utilities and serves as a key factor in
the success or failure of utility operations. Utility companies and regulators
need tools to analyze and structure effective rates to ensure fairness while
allowing operators to be financially viable and affordable for consumers.
Whether government or privately owned, mechanisms and techniques exist to:
analyze the financial position of utilities; determine the revenues required to
operate; design rates that achieve stated objectives; and develop transparent
processes for changing rates.
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. The course contains six modules, each consisting of content
sessions, case study review and analysis, module assignments and discussion
groups, and action planning sessions. The course is self-paced (although each
module is "timed" to be completed in a one-week period)- all you need is an
Internet connection. Course work is approximately 5 - 6 hours per module/per
week. IP3 participants in previous online courses have found they benefit
significantly from the interactive sharing of ideas and
insights.
The target audience for this course
is professionals who have had limited or little exposure to rate development
and are seeking to develop a greater understanding and skill in the use of this
critical tool.
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| Course Content |
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Module I:
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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
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| 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
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| 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
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| 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
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| 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
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| 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
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| All
Modules: |
Step by Step Action Planning in
All Six Modules
Prior to completing each module, IP3 requires
participants to complete an Action Plan detailing how they will apply
their new knowledge and skills on-the-job. Our expert faculty members guide
participants in developing their action plans throughout the course, and in
each module participants will present their action plan to the group for peer
review and comments. |
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CEU Certification
Eligibility
Certified
Regulation Specialist™
Certified
Utility Management Specialist™ |
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