NEPPA has partnered with the American Public Power Association to bring a high caliber cost of service workshop:  Implementation and Application training. Participants will participate in a two-day training program.

Who Should Attend

These courses are designed for:

>General managers
>Commissioners
>Finance and accounting personnel
>Rate analysts
>Financial planners
>Policymakers

Course Overview (8:30 am – 4:00 pm, November 8-9, 2022)

Explore the ins and outs of cost of service—from key concepts to the nuts and bolts of working through a cost of service model. Get hands-on experience working with an actual Excel model to apply cost of service and rate design principles and processes to electric, water, sewer, gas, and other municipal services. Complete the step-by-step process of putting a cost of service study together and review how to develop a fully functional and unbundled cost of service study. As you explore what it takes to do a thorough cost analysis, gain lessons learned from real-world examples.
This course does not have prerequisites, nor does it require advance preparation.

Course Topics
• Basic cost of service and pricing concepts, terminology, and processes
• Collecting and using cost of service data and organizing costs
• Allocating municipal facilities and expenses
• Classifying generation, transmission, and distribution expenses
• Categorizing generation types and primary cost components
• Collecting and applying load research data
• Developing and applying cost allocation factors
• Gauging customer voltage levels
• Apply cost allocation factors in a cost of service model
• Determining monthly customer facilities and billing costs
• Identifying bundled and unbundled primary cost components
• Applying cost of service components to rate designs
• Understanding the limitations of a traditional cost-of-service model

Learning Outcomes

Upon completion of this course, participants will be able to successfully:

• Explain the role of rates and cost of service studies, define common terminology
• Understand how to identify, collect, and organize costs
• Explain how to functionalize utility assets and expenses
• Outline how utility assets and expenses are classified
• Develop and apply cost allocation factors, and define how customer allocation factors are determined
• Identify methods used to collect load research data, and how to utilize utility load data to properly assign customer costs
• Outline how to determine monthly customer facilities and billing costs, and explain cost components of your utility
• Describe bundled and unbundled primary cost components, and specify cost components related to monthly customer charge
• Understand how to implement rate adjustments based on cost of service study results
• Utilize a functional cost of service model, and summarize study results for end user, Board, Commission or Council
• Understand the limitations of a traditional cost-of-service model

2-Day Program (November 8 – 9, 2022)

Please contact training@neppa.org or call the office at (978) 540-2200.