Monday, October 18, 2010
Registration opens at 8:30 a.m. Session begins at 9:00 a.m.

Morning

The Regulatory Framework - 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 Allocation and Economic Value Creation

• Net Present Value (NPV) vs. revenue requirements

Understanding Financial Statements and Performing 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
• Risk profile of utilities
• Influence of unregulated activity
• Impact of the current financial environment

Determining Credit Ratings: A Case Study

Afternoon

Rate of Return and Value Creation: The Value Movement

Cost of Capital and Capital Structures

• Understanding risk and return in capital markets
• Modern portfolio theory and the asset pricing models
• Cost of equity methodologies and illustrations
• Practical applications illustrated through case study
• Divisional cost of capital – unbundling risk and return across segments: generation vs. transmission vs. distribution

Capital Structure Issues

• Appropriate capital structures in a restructured regulatory environment
• Optimal capital structure simulation model
• Double leverage
• Case Study: Florida leverage formula

Session ends at approximately 5:00 p.m.

Tuesday, October 19, 2010

Continental breakfast opens at 8:00 a.m. Session begins at 8:30 a.m.

Morning

Utility Applications and Cutting Edge Techniques

• Contemporary rate of return techniques
• The new performance metrics applied to utilities
• Cutting edge techniques in capital allocation
• Case studies

Performance-Based Regulation: Alternatives to traditional ratemaking

• Focused vs. integrated rate of return incentives
• Price cap regulation
• Market basket ratemaking
• Innovative rate mechanisms

Afternoon

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

The Regulator's Perspective

• Key issues in the current economic environment
• The financial capabilities commissions are expecting from utilities now
• How regulators judge value/performance metrics
• The role of cost of capital issues

Program concludes at approximately 4:00 p.m.