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FERC TRANSMISSION RATEMAKING

Accounting and Finance, FERC, Finance and Accounting, Transmission


FERC TRANSMISSION RATEMAKING

Jon Brown
May 27, 2023


FERC TRANSMISSION RATEMAKING

SEPTEMBER 19-20, 2024 | ONLINE :: CENTRAL TIME

0924-ferc-transmission-ratemaking

> “Very good information and timely discussion of current issues.” Director,
> Electric Transmission Engineering, Montana-Dakota Utilities Co.
> 
> “Overall, this was a very informative FERC formula rate training class.” Lead
> Rates & Regulatory Analyst, Duke Energy
> 
> “Every time I have attended an EUCI training event, I was thoroughly pleased.”
> Paralegal II, Ameren
> 
> “I appreciate the flexibility of EUCI and their ability to offer engaging and
> informative courses. I learned a lot and will continue to look for available
> online courses.” Dominion Energy

Investment analysts have signaled in recent years a preference for electric
utility investment in rate-regulated activities, including transmission and
distribution. Meanwhile, FERC’s Order No. 1000 reforms sought to create new
opportunities for utilities and other developers to compete for regionally
planned transmission projects. FERC’s policies on ratemaking for transmission
service have been in flux, and challenges to utilities’ return on equity are now
commonplace, placing a premium on understanding how utilities subject to FERC’s
jurisdiction recover their transmission cost of service.  

This course will provide attendees with a wealth of information, including:

 * A review of FERC’s regulation of transmission-owning utilities
 * A working knowledge of cost-of-service rates for transmission
 * How to construct a revenue requirement
 * How to calculate transmission rates from utility books and records using
   FERC’s cost-of-service statements or a formula rate
 * The latest developments in FERC ratemaking policy and precedent on hot button
   issues such as ROE and tax reform

Attendees will return to their organizations ready to participate and add value
in any initiative related to FERC transmission ratemaking.   

Learning Outcomes  

 * Gain working knowledge of FERC’s regulation of electric utilities under Part
   II of the Federal Power Act
 * Achieve familiarity with FERC’s Uniform System of Accounts
 * Discuss how to construct a transmission revenue requirement and transmission
   rates based on utility accounting records, including rate base, rate of
   return, depreciation, expenses, and taxes
 * Identify how to populate and true-up a formula rate template
 * Examine how to estimate the return on equity using FERC’s evolving
   methodology
 * Review recent FERC ratemaking developments in areas such as ROE, income
   taxes, and incentive rates


AGENDA

Thursday, September 19, 2024 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome



12:30 – 1:15 p.m.
Lunch Break



9:00 a.m. – 4:30 p.m.
Course Timing

 


INTRODUCTION TO FERC’S REGULATION OF ELECTRIC UTILITIES

 * Part II of the Federal Power Act: Regulation of Wholesale Sales and
   Transmission in Interstate Commerce
   * FPA Section 205: Utility Rate Filings
   * FPA Section 206: Third Party Complaints and FERC Investigations
 * Rate Review Process
   * Administrative Process for Rate Filings
   * Standards for Ratemaking
 * Landmark Rulemakings: Transmission
   * Order No. 888: Mandatory Open Access and the Pro Forma OATT
   * Order No. 2000: Regional Transmission Organizations
   * Order No. 679: Incentive Rate Treatments for Transmission
   * Order No. 890: Refinements of the Pro Forma OATT
   * Order No. 1000: Regional and Interregional Transmission Planning


INTRODUCTION TO COST-OF-SERVICE RATES

 * Uniform System of Accounts (“USofA”)
   * Purpose of USofA
   * USofA Roadmap
 * Step Through the Development of a Revenue Requirement and Rate Design by
   Reviewing Key Components of Cost-of-Service Rates
   * Rate Base
   * Rate of Return, Including ROE
   * Depreciation
   * O&M and A&G
   * Taxes
   * Billing Determinants
 * Group Exercise: Build a Transmission Rate


FORMULA RATES

 1. 1. History of Formula Rates for FERC-Jurisdictional Services
    2. Stated Rates vs. Formula Rates – Pros and Cons
    3. In Depth Review of Sample Formula Rate:
       1. Populating Values from FERC Form No. 1
       2. Fixed Values:
          1. ROE
          2. Depreciation Rates
          3. PBOPs
       3. Annual Update Process
          1. Calculation of True-Up Adjustment
          2. Projected Costs

 * Discovery and Challenge Procedures
 * FERC Informational Filing

Friday, September 20, 2024 : Central Time

8:45 – 9:00 a.m.
Log In



9:00 a.m. – 12:00 p.m.
Course Timing


CURRENT ISSUES

 * ROE: Opinion Nos. 569 and 569-A and Where We Go from Here
 * Income Taxes: Congressional Tax Reform and Impacts on Utility Rates
 * Incentive Rates
 * Use of Formula Rates by Non-Jurisdictional Municipal and Cooperative
   Utilities in RTO/ISO Regions
 * Use of Formula Rates by Competitive Transmission Developers for Competitive
   Order No. 1000 Projects


INSTRUCTORS

Suzanne McBride, Partner, Van Ness Feldman, LLP

Suzanne Keppeler McBride applies her in-house and law firm experience to
counseling energy clients on the development of transmission and power sale rate
and tariff structures; negotiating interconnection, transmission service and
power sales contracts; compliance with bilateral and organized market rules;
defense in FERC and North American Electric Reliability Corporation (NERC)
investigation, enforcement, and litigated matters; and representation on mergers
and acquisitions. She also advises on compliance with and the implementation of,
NERC and regional reliability standards. In addition to her private practice
experience with Van Ness Feldman, Suzanne’s experience includes serving in
regulatory and legal roles with investor-owned utilities, focusing on FERC
matters and NERC compliance, serving as lead counsel in developing stated and
formula-based transmission rates for electric utilities in bilateral and
organized markets, drafting and negotiated unique transmission and
interconnection agreements, developing internal compliance and training
programs, as well as assisting her internal clients with day- to-day
implementation and interpretation of transmission and market-based rate tariffs.
 

--------------------------------------------------------------------------------

Chris Duffy, Director Regulatory Services, American Electric Power  

Chris Duffy is a Director of Regulatory Services for American Electric Power in
Columbus, OH. Chris leads a team responsible for managing rate filings at FERC,
including the administration of over 40 wholesale generation and transmission
formula rates in PJM, SPP, and MISO. Chris has participated in several
transmission formula rate cases including initial rate formation, rate
modifications, and complaints.   

--------------------------------------------------------------------------------

Justin P. Moeller, Senior FERC Counsel, NextEra Energy, Inc.

Justin Moeller is Senior FERC Counsel at NextEra Energy in Washington, DC. 
Justin has extensive experience representing utilities in cost-of-service rate
proceedings before FERC, including transmission formula rate cases. Since 2012,
Justin has participated in more than a dozen different transmission formula rate
cases.  Justin has also assisted in responding to complaints involving formula
rate issues and in responding to issues arising during the formula rate annual
update process.  He also has experience developing and prosecuting stated rates
for transmission and ancillary services, including wind integration charges.

--------------------------------------------------------------------------------

Douglas W. Smith, Partner, Van Ness Feldman, LLP

Doug Smith is a partner in the Washington, DC office of Van Ness Feldman, where
he is a member of the firm’s Electricity Practice. Doug has an active practice
representing electric utilities and other energy sector clients before the
Federal Energy Regulatory Commission (FERC).  He advises clients on regulatory
policy concerning the electricity sector, including the rules establishing the
framework for transmission development, access, and ratemaking.  Following Order
No. 1000, Doug has represented a number of transmission developers located
throughout the country in preparing, filing, and prosecuting transmission
formula rate cases. He has also represented transmission developers in seeking
incentive rate treatments under Order No. 679. Prior to joining Van Ness
Feldman, Doug served as General Counsel to the FERC, and as Deputy General
Counsel for Energy Policy at the U.S. Department of Energy.


ONLINE DELIVERY

We will be using Microsoft Teams to facilitate your participation in the
upcoming event. You do not need to have an existing Teams account in order to
participate in the broadcast – the course will play in your browser and you will
have the option of using a microphone to speak with the room and ask questions,
or type any questions in via the chat window and our on-site representative will
relay your question to the instructor.

 * Microsoft recommends downloading and installing the Teams app if possible.
   You may also use the Edge browser or Chrome.
 * You will receive a separate email with a unique link to a personalized
   landing page which will include links to join all sessions of this event.
 * If you are using a microphone, please ensure that it is muted until such time
   as you need to ask a question.
 * The remote meeting connection will be open approximately 30 minutes before
   the start of the course. We encourage you to connect as early as possible in
   case you experience any unforeseen problems.




REGISTER

Please Note: This event is being conducted entirely online. All attendees will
connect and attend from their computer, one connection per purchase. For details
please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings
available to all attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:


FERC TRANSMISSION RATEMAKING

SEPTEMBER 19-20, 2024 | ONLINE

Individual attendee(s) - $ 1195.00 each



VOLUME PRICING ALSO AVAILABLE

Individual attendee tickets can be mixed with ticket packs for complete
flexibility

Pack of 5 attendees - $ 4,780.00 (20% discount)

Pack of 10 attendees - $ 8,365.00 (30% discount)

Pack of 20 attendees - $ 14,340.00 (40% discount)

Add to Order

Your registration may be transferred to a member of your organization up to 24
hours in advance of the event. Cancellations must be received on or before
August 16, 2024 in order to be refunded and will be subject to a US $195.00
processing fee per registrant. No refunds will be made after this date.
Cancellations received after this date will create a credit of the tuition (less
processing fee) good toward any other EUCI event. This credit will be good for
six months from the cancellation date. In the event of non-attendance, all
registration fees will be forfeited. In case of conference cancellation, EUCIs
liability is limited to refund of the event registration fee only. For more
information regarding administrative policies, such as complaints and refunds,
please contact our offices at 303-770-8800


CEUS

Credits



EUCI is accredited by the International Accreditors for Continuing Education and
Training (IACET) and offers IACET CEUs for its learning events that comply with
the ANSI/IACET Continuing Education and Training Standard. IACET is recognized
internationally as a standard development organization and accrediting body that
promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 CEUs for this event.

Verify our IACET accreditation

Who recognizes IACET Credits?

Requirements for Successful Completion of Program

Participants must log in each day and be in attendance for the entirety of the
course to be eligible for continuing education credit.

Instructional Methods

PowerPoint presentations, interactive group exercise, and group discussion will
be used during this course.

--------------------------------------------------------------------------------

Upon successful completion of this event, program participants interested in
receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 11.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Methood: Group Internet Based
Advanced Preperation: None

EUCI is registered with the National Association of State Boards of Accountancy
(NASBA) as a sponsor of continuing professional education on the National
Registry of CPE Sponsors. State boards of accountancy have final authority on
the acceptance of individual courses for CPE credit. Complaints regarding
registered sponsors may be submitted to the National Registry of CPE Sponsors
through its web site: www.nasbaregistry.org

 

 

Who Should Attend 

 * Utility analysts, attorneys, supervisors, and directors without previous
   electric transmission ratemaking experience
 * Managers and supervisors of municipal and cooperative utilities
 * Transmission customers with significant transmission rate exposure
 * Investors and financial analysts seeking a better understanding of
   transmission cost recovery
 * Regulatory and legislative personnel dealing with transmission ratemaking as
   overseen by FERC
 * Newcomers to the industry or to cost-of-service ratemaking working in areas
   such as legal, financial, regulatory, customer care, or community relations

 


 * ← Fundamentals of Geographic Information Systems (GIS)
 * ERCOT Market – Best Practices for Bidding & Settlements for Market
   Participants →


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AgendaInstructorsOnline DeliveryRegisterCEUsDownload BrochurePrint Event Details

 * 1-303-770-8800
 * questions@euci.com
 * 6400 S. Fiddlers Green Cir, Ste 1620, Greenwood Village CO 80111

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