Practical Skills for the Changing Electric, Natural Gas, and Telecommunications Industries - The Bas (Practical Skills)

Venue: Albuquerque Sheraton Uptown

Location: Albuquerque, New Mexico, United States

Event Date/Time: May 12, 2002 End Date/Time: May 17, 2002
Registration Date: May 12, 2002
Early Registration Date: Apr 20, 2002
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SUNDAY – May 12, 2002 6:30 to 8:00 p.m. Registration and Reception.
MONDAY - May 13

8:30 – 12:00
Technology Jurewitz
How Electricity is Generated, Transmitted and Delivered
How Electricity is Generated, Transmitted and Delivered
Ancillary services
Industry Structure and History of the Electric Industry
Legal, Economic and Technological Forces Reshaping the Industry
FERC Orders 888, 889 and 2000 and State Restructuring Efforts
Service and Corporate Unbundling Alternatives
Wholesale and Retail Market Access and Unbundling Issues
Standard-Offer and Default Service

1:30 – 5:00
Overall Cost of Service Under the Rate Base/Rate-of-Return Paradigm Hanley
Rate Base
Expenses, Taxes and Depreciation
Capital Structure, Cost of Capital and Fair Return

TUESDAY – May 14
8:30 – 12:00
Revenue Requirement Problem Using the Rate Base/Rate of Return Paradigm Hanley

1:30 – 3:00
Total System and Customer-Specific Load Characteristics: Essentials for Gegax
Cost Allocation and Rate Design
Load Factor, Coincidental Peak Demand, Non-Coincidental Peak Demand,
Average-Excess Demand, Coincidence Factor, Diversity Factor, Load Curves
and Load Duration Curves
3:30 – 5:00
Dividing the Overall Cost of Service – Prerequisites for Rate Design Sarikas
Functionalization Methods

8:30 – 12:00
Dividing the Overall Cost of Service – Prerequisites for Rate Design Sarikas
Classification Methods
Allocation Methods

1:15 – 7:00 Trip to Santa Fe (optional)

8:30 – 12:00
Cost-Based Rate Design Alternatives: Determining Class Rate Elements McGuckin
Load Retention Rates
Unbundled Cost-Based Rates
Interruptable Rates

1:30 – 5:00
Unbundled Cost-Based versus Market-Based Rates Gegax
Multiple Block Rate Design
Decreasing and Increasing Block Structures – rates differentiated by total
monthly kWh
Rates differentiated by kW of demand
Rates differentiated by kWh per kW of demand

FRIDAY – May 17
8:30 – 12:00
Stranded Costs Gegax
Overview of course


SUNDAY – May 12. 14 6:30 to 8:00 p.m. Registration and Reception.

MONDAY – May 13
8:30 - 12:00

Technology Gildersleeve
Well-Head to Burner Tip, Storage and Bulletin Boards

Current Structure of the Industry
Legal, Economic and Technological Forces which are reshaping the Industry

1:30 – 5:00
Regulatory Treatment of Energy Costs and Price Volatility Mitigation Ken Jacobs
Planning for Customer Requirements
Gas Cost Mitigation and Price Stabilization
Traditional Utility Mechanisms
Financial Hedging

8:30 – 12:00
Accounting and Financial Analysis Montgomery

1:30 – 5:00
Cost of Service Problem: Determining Total Revenue Montgomery

8:30 – 12:00
Cost Allocation: Assigning Revenues to Customer Classes Blatter/Gieseking
Why Is It Important
How does it relate to total Cost of Service?
What Steps Are Involved in Allocating Costs
Why Can Cost Allocation be a Controversial Issues
How Do LDC’s allocate their Costs
Cost Allocation Problem

1:15 to 7:00 pm Santa Fe Trip (optional)

8:30 - 12:00
Rate Design: Determine Prices for Various Customer Classes Blatter/Gieseking
What is Rate Design?
Why is it Important?
How does it relate to Total Cost of Service and Cost Allocation?
How Do LDC’s Design Their Rates?
Types of LDC Rate Designs

1:30 – 5:00
Rate Design (continued)
Rate Design Problem

The Impact of Retail Competition and Unbundling on LDC Pricing
How Do Interstate Pipelines Allocate Costs?
How do the Interstate Pipelines Design Their Rates?
How do Pipeline Rates Affect LDC Rates?

FRIDAY – May 17
9:30 - 12:00
What Forces Are Shaping the Current and Future Regulatory Costello
and Competitive Environment of the LDC”S


The purpose of the telecommunications section of the basic course is to introduce the students to the overall role played by regulation. For a new person entering this field, the
relationship between the industry and regulators is extremely confusing. Understanding the technologies, the thousands of acronyms, the structure of the industry, the role of Federal
versus state regulators, etc. can be very overwhelming. The topics discussed in this course touch on all areas confronted by commission and industry staff.

SUNDAY – May 12 6:30 to 8:00 p.m. Registration and Reception.
MONDAY – May 13
8:30 – 12:00
Industry Overview - A Roadmap for This Course Duncan/Smith

A Generally Accurate, But Not Always Boring History of Telecommunications Gillan
How did we arrive at where we are today
Who are the Major Players Involved

1:30 – 5:00
Technology: Basic Network Layouts Turner
What are the Parts of the Telecommunications Network
What are the Services Offered thru Today’s Technology

TUESDAY - May 14
8:30 – 12:00
Traditional Regulation and Its Continuing Evolution Duncan
Rate of Return Regulation
Revenue Requirements
Cost of Capitol
Alternative Forms of Regulation (AFORS or Price Caps)

1:30 –3:00
Service Quality Regulation
Regulating Retail Performance Darr
. Establish standards
. Implementation of penalties
Regulating Wholesale Performance
. Establishing standards
. Implementation of penalties

3:30 - 5:00
Universal Service Funding Lorang
What is Universal Service Funding
Why do we have Universal Funding
How do we determine which carriers are eligible

8:30 – 10:30
Local Competition Bernt
Unbundling and Line Sharing
Section 271
Fourteen point checklist
Access to OSS systems

10:30 – 12:00
Access charges Steele
What are they
How are they calculated
Why they are so important to both Local Exchange Carriers (LECS
And interexchange carriers (IXCs)

1:15 – 7:00 Santa Fe Trip (Optional)


8:30 – 10:00
An primer of Costing and Pricing Basics Smith
What is a cost study
Why do cost studies have to be made
What types of costs are used to determine
Retail price floors
Wholesale costs
What controversies arise when determining costs

10:30: - 12:00
Determining costs and Prices for: Steele
Retail price floors - TSLRIC (State guidelines)
*Retail Price Floor Problem

1:30 – 5:00
Wholesale: costing and pricing of UNE’s - TELRIC (FCC guidelines) Steele
*Wholesale Cost Problem
Wholesale: Resale
*Resale Cost Problem

FRIDAY – May 17
9:00 – 11:00
An Overview of the relationship of technology, regulation, costing and pricing Steele


Sheraton Uptown, Louisiana and Manuel Blvd.
New Mexico
United States

Additional Information

LOCATION: The conference will be held at the Sheraton Uptown, 6815 Menaul NE, Albuquerque, NM 87110. A block of rooms has been reserved at a special rate of $99 single or $105 for double. To insure the rate at the Sheraton Uptown, each participant must make his/her own reservations prior to April 12, 2002 by calling 505-881-0000. You must mention you will be attending the NMSU Public Utility Conference to receive this rate. COST: The registration fee for the conference is $995 for company representatives; $895 for center sponsors, state commissions and all other governmental entities. A 10% discount is offered for three or more participants from the same company or commission. The 10 % discount will be in the form of a refund after the completion of the course. The fee covers all instructional materials presented, the reception, transportation to Santa Fe, breakfast each morning, and coffee breaks. The fee does not include travel, hotel accommodations or meals other than those specified. CLE and CPE CREDIT: While NMSU does not apply to each state as a sponsor, CLE and CPE credits have been given by numerous states on an individual basis. Each individual requesting CLE and CPE credits should contact their state board individually prior to the course and notify the CPU if there are special requirements. You will receive a certificate of completion for this course. REGISTRATION: MUST BE MADE IN ADVANCE. To reserve a space, telephone 505-646-4876 or 505-646-3242: send a fax to 505-646-6025: e-mail to or mail your completed enrollment form. You will receive confirmation of your registration prior to the course. Payment by check or credit card with enrollment is preferred. If you would prefer billing, a purchase order or training requisition is necessary. Payment must be received by May 10, 2002 unless other arrangements have been made with the Center. CANCELLATION POLICY: If notice is received more than five days before the meeting, the tuition fee will be refunded in its entirety. Cancellations after that time are subject to a $100 service charge per person. No refunds will be made after the start of the program, however, tuition may be applied to future programs. Substitutions can be made at any time. FOR MORE INFORMATION, CONTACT: Center for Public Utilities MSC 3MPD New Mexico State University, Box 30001 Las Cruces, NM 88003-8001 505-646-4876 or 505-646-3242: Fax: 505-646-6025 E-Mail: Web Site: