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CONFERENCE
Improving Regulatory Outcomes:
A How-To Guide
October 28–29, 2013
Avenue Crowne Plaza Chicago
Chicago, IL
Host Utility
EUCI is authorized by IACET to
offer 1.0 CEUs for the conference.
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Improving Regulatory Outcomes: A How-To Guide
October 28–29, 2013
Chicago, IL
Overview
With increasing infrastructure investments, and limited sales growth, utilities are finding that their current cost recovery
mechanisms are limiting their opportunity to earn allowed rates of return. Utilities continue to look for new ways to
successfully navigate the spaces between investors, customers and regulators. Is there a better way to improve regulatory
outcomes than traditional rate cases? Do we need to change the current regulatory process – building the case in isolation,
parading dozens of experts and executives in front of the regulatory body (who may already think you will be asking for
more than you need), and hoping for the best?
Do we have the necessary systems and processes in place today to meet the needs of customers in the future as more
detailed information about consumption patterns becomes available through smart meter technologies?
Do we need to implement alternative revenue recovery models, or simply improve existing methods? Are customers,
and regulators, ready to adopt these proposed changes? And what about the basics? Are we doing all that we can as an
industry to make the current business model work? Join us for a hands-on symposium on improving the outcomes of your
regulatory filings where you’ll hear the pros, the cons, what’s worked, and what hasn’t.
Who Should Attend
This conference was developed for:
• Utility executives
• Commissioners
• Commission staff
• Attorneys
• Regulatory affairs managers
• Pricing and load research managers
• Customer representatives and organizations
• Cost of service analysts
• Financial analysts
• Rate design, product development, and customer strategy professionals
Learning Outcomes
•
•
•
•
•
The chance to hear what was
happening across the utility
industry and how others were
managing today’s challenging
regulatory environment drew
me to this course, and it did not
disappoint! The speakers and
conference presentations were
excellent, providing valuable
information I could look to for
guidance.”
– Manager of Revenue Requirements,
Avista Corp.
Review different state legislative and regulatory activities related to alternative regulatory models
Identify different cost recovery and regulatory mechanisms in use today
Review the drivers of regulatory lag and how some utilities are addressing this issue
Discuss the implications and impacts of the use of historic versus future test years
Discuss and apply various methods to enhance regulatory processes to improve rate case outcomes
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Improving Regulatory Outcomes: A How-To Guide
October 28–29, 2013
Chicago, IL
Agenda
Monday, October 28, 2013
8:00 – 8:30 a.m. Registration and Continental Breakfast
8:30 – 8:45 a.m. Introduction and Opening Remarks
How the regulatory landscape is changing, how this is impacting rate cases today, and how some utilities
are responding.
– Rick Starkweather, Partner, ScottMadden Inc.
8:45 – 9:45 a.m. Keynote Address from Commonwealth Edison
Commonwealth Edison Company (ComEd) is a unit of Chicago-based Exelon Corporation (NYSE: EXC),
one of the nation’s largest electric utilities with approximately 5.4 million customers. Hear an informative,
balanced perspective on the energy industry regulatory landscape in Illinois from ComEd Vice President,
Melissa Sherrod.
– Melissa Sherrod, Vice President, Regulatory Projects, Commonwealth Edison
9:45 a.m. – 12:00 p.m. Session I: Infrastructure Riders and Formula Rate Plans
In 2011 and 2013, Illinois state legislators passed legislation for electric and gas utilities requiring them to
significantly upgrade both transmission and distribution infrastructure to improve reliability. To recover
those costs, authorized rates are based on an annual formula rate plan (electric) and traditional test years
with an infrastructure rider (gas). This session will provide insights on this new regulatory model in Illinois
from both the utility and regulatory perspectives.
– Jackie Voiles, Senior Director, Regulatory Affairs, Ameren Illinois
– Kevin Wright, President, Illinois Competitive Energy Association
*Bonus Discussion: How to Produce a Successful Rate Case – A Former Commissioner’s Observations
12:00 – 1:00 p.m. Group Luncheon
1:00 – 1:45 p.m. Panel Discussion: The Evolution of the Regulatory Compact
Moderator: Rick Starkweather, Partner, ScottMadden, Inc.
Panelists:
– Melissa Sherrod, Vice President, Regulatory Projects, Commonwealth Edison
– Jackie Voiles, Senior Director, Regulatory Affairs, Ameren Illinois
– Kevin Wright, President, Illinois Competitive Energy Association
1:45 – 5:00 p.m. Session II: Improving Regulatory Outcomes
How well does your company develop and manage rate cases today? As a group we’ll go through a
self-diagnostic, and discuss how you can improve regulatory outcomes within your own company. We’ll
also discuss how to evaluate potential areas of opportunity, and develop a more structured approach for
improvements. Topics covered include:
•
Integrated financial and regulatory plans
•
Future test year considerations
•
Capital project budgeting and management
•
Improving cycle times
•
How to plan and manage a successful case – lessons learned
– Rick Starkweather, Partner, ScottMadden Inc.
5:00 – 6:00 p.m. Networking Reception - Sponsored by ScottMadden Inc.
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Improving Regulatory Outcomes: A How-To Guide
October 28–29, 2013
Chicago, IL
Agenda
Tuesday, October 29, 2013
8:00 – 8:30 a.m. Continental Breakfast
8:30 – 11:45 a.m. Session III: Utilities Re-engineering the Traditional Rate Case Process
Learn how utilities are improving regulatory outcomes by critically examining regulatory lag and their
ability to earn their allowed ROE, taking advantage of new recovery mechanisms, and even reengineering
the underlying financial planning and budgeting, cost of service, and rate case development processes.
We’ll also learn how some companies are investing in systems to support rate cases in the future.
Drivers of Regulatory Lag and Northwest Solutions
Over the last few years, utilities have experienced many drivers of regulatory lag. For example, increased
costs associated with replacement of an aging infrastructure and increased operating, maintenance and
administrative costs. Coupled with low to no sales growth and a ratemaking construct based primarily
on a historical test period, and the utility industry is experiencing a “perfect storm”. Proposals recently
approved by some of the commissions in the Northwest may help address this issue. We will talk about the
thought process behind them.
– Liz Andrews, Manager Revenue Requirements, Avista Corp.
Migration to a Future Test Year
Legislation in New Mexico in 2009 allowed for a future test year (FTY). Process improvements were
implemented at PNM to better support the FTY filings and to comply with the new administrative rules,
including new systems, a renewed emphasis on budgeting accuracy through incentive plans, improved
timing of capital additions to allow for better returns and full recovery, and even restructuring of the
organization to align revenue requirements with budgets. A discussion of risks associated with forecasted
test periods, including the ability to accurately forecast and how it impacts the filing will be included.
– Shauna Lovorn-Marriage, Director of Strategic Financial Planning & Analytics, PNM Resources Inc.
Reducing Regulatory Lag and Automating Supporting Rate Making Systems
Topics covered include:
•
Overview of Xcel Energy’s regulatory structure
•
Conducting a ROE leakage analysis
•
Supporting the Five-Year Revenue Requirements models
•
Recent regulatory accomplishments
•
Plans for the future
•
Developing a cost of service filing and strategic planning “process” that:
•
Standardizes rate making processes
•
Implements quality assurance controls
•
Reduces cycle times through automation
•
Facilitates strategic analysis
•
Some of the challenges of the project (level setting across jurisdictions, in-sourcing decisions for
model development, etc.)
– Charles Anderson, Director, Xcel Energy, Inc.
11:45 a.m. – 12:00 p.m. Closing Remarks
– Rick Starkweather, Partner, ScottMadden, Inc.
12:00 p.m. Conference Adjourns
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Improving Regulatory Outcomes: A How-To Guide
October 28–29, 2013
Chicago, IL
Instructional Methods
Case Studies, Panel Discussions and PowerPoint presentations will be used in this conference.
Requirements for Successful Completion of Program
Participants must sign in/out each day and be in attendance for the entirety of the conference to be eligible for continuing
education credit.
iacet Credits
EUCI has been approved as an Authorized Provider by the International Association for Continuing
Education and Training (IACET), 1760 Old Meadow Road, Suite 500, McLean, VA 22102. In obtaining
this approval, EUCI has demonstrated that it complies with the ANSI/IACET Standards, which are widely
recognized as standards of good practice internationally.
As a result of its Authorized Provider membership status, EUCI is authorized to offer IACET CEUs for its
programs that qualify under the ANSI/IACET Standards.
EUCI is authorized by IACET to offer 1.0 CEUs for the conference.
EVENT LOCATION
A room block has been reserved at the Avenue Crowne Plaza Chicago, 160 East Huron Street, Chicago, IL 60611, for
the nights of October 27 - 29, 2013. Room rates are $199, plus applicable tax. Call 1-312-787-2900 for reservations and
mention the EUCI program to get the group rate. The cutoff date to receive the group rate is September 30, 2013, but as
there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations
early.
“I found both the pre-conference workshop and
conference of “Improving Regulatory Outcomes” in San
Diego were very insightful and educational. It provided
a great opportunity for all participants to communicate
the best practices in the industry. What is especially
educational to me was to listen to how other companies
have done with the Fully Projected Future Test year. The
other thing I think that is really helpful for all utilities is
to hear how different public utility commissions view the
various issues during the regulatory proceedings.”
– Revenue Policy Manager, PECO Energy
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Improving Regulatory Outcomes: A How-To Guide
October 28–29, 2013
Chicago, IL
PROCeEDINGS
A copy of the conference proceedings will be distributed to attendees at the event. If you are unable to attend or would
like to purchase additional copies, flash drives are available two weeks after the conference is complete. The cost per flash
drive is US $295 (add US $50 for international shipments). Flash drives include visual presentations only. Upon receipt of
order and payment, the flash drive will be shipped to you via regular USPS mail.
NOTE: All presentation flash drive sales are final and are nonrefundable.
Click Here to Register Online
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EVENT LOCATION
A room block has been reserved at the Avenue Crowne Plaza Chicago,
160 East Huron Street, Chicago, IL 60611, for the nights of October 27 29, 2013. Room rates are $199, plus applicable tax. Call 1-312-787-2900
for reservations and mention the EUCI program to get the group rate.
The cutoff date to receive the group rate is September 30, 2013, but as
there are a limited number of rooms available at this rate, the room block
may close sooner. Please make your reservations early.
Click Here to Register Online
Improving Regulatory Outcomes: A How-To Guide
October 28–29, 2013: US $1395
Early bird on or before october 18, 2013: US $1195
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