The Regulatory Process - Overview and Key Issues

• - Cost of service, revenue requirements and rate cases
• - Computation of revenue requirements
• - Rate base and rate of return
• - Rate case issues in the current regulatory environment

Capital Budgeting and Value Creation

- NPV vs. revenue requirements

Financial Statement and Risk Analysis

• - Accounting vs. economic metrics
• - Essential ratios for measuring risk and performance: Interest coverage, fixed charge coverage, dividend payout, ROE, market value-to-EBITDA, ROTC
• - Impact of business risk and competition on financial ratios
• - Rising risk profile of utilities
• - Stranded cost and securitization

Equity Performance Measures

-Economic Value Added
-Market Value Added
-Cash Flow Return on Investment

Cost of Capital Issues

• - Understanding risk and return in capital markets
  - DCF and risk premiums
• - Modern portfolio theory and the asset pricing models
• - Cost of equity methodologies and illustrations
• - Practical applications

Utility Applications and Cutting Edge Techniques

• - The new performance metrics applied to utilities
• - Revolutionary techniques in capital allocation

Cost of Capital Issues (continued)

- Divisional cost of capital – unbundling risk and return across segments: generation vs. transmission vs. distribution
- Appropriate capital structures in a restructured regulatory environment
- Optimal capital structure simulation model

Performance-Based Regulation - Alternatives to traditional ratemaking

Performance-Based Regulation - Alternatives to traditional ratemaking (continued)

Derivatives and Risk Management

- Commodity, price and interest rate risk
- Futures, forwards and other hedging instruments

The Real Option Revolution

• - Real options and utility capital investments