Advanced Rate Design for Cost Effective Tariffs

December 17-18, 2024 | Online :: Central Time

1224-advanced-rate-design

“EUCI programs, speakers and content are consistently on point with industry developments and a valuable knowledge and shared experience resource.”  – Policy Advisor, Public Utility Commission of Nevada

“This conference was informative and helpful in bringing together members of different backgrounds within the industry to share their observations and findings as it related to the changing environment in which utilities operate. The event length was also just right!” – Staff Rates Analyst, PSEG

“Great topics- was nice to hear about what’s happening in other jurisdictions and how they address challenges”- Project Management & Regulatory, BC Hydro

As states consider how to accelerate the clean energy transition, utility rate design becomes a critical piece of the puzzle, balancing operational revenue needs with advancing policy goals like clean energy adoption, equity, affordability, and greenhouse gas reduction. The rapid expansion of data centers and the rise of AI present both opportunities and challenges for the energy sector, making it essential for rate designs to keep pace.

With energy prices on the rise, the impact on energy-burdened customers—those spending 6% or more of their income on energy—highlights the urgency of developing effective, adaptable rate designs that support technological progress while focusing on sustainability and equity.

Key topics for discussion in this conference include:

• Cost-based compensation versus performance rewards for improving utility operations
• Latest trends and innovations in rate design
• Impacts of electrification on utility costs and rates
• Marginal cost pricing and dynamic pricing as a solution to mitigate high electricity costs
• Repayment strategies and effective energy messaging to enhance customer satisfaction
• Strategies for rate design that accommodate the needs of large load users like data centers

Register now to engage with industry leaders, policy makers, and innovators as we navigate the complexities of utility rate design in the face of rapid technological advancements and evolving energy demands.

Learning Outcomes

• Review the latest trends and strategies in rate design
• Examine the impact of electrification measures on costs and rates
• Assess the effects of new projects, rooftop solar, and different rate structures
• Analyze how AI-driven technology-based marginal cost pricing can lower operating costs for electrification technologies
• Address barriers to electrification and the limitations of current rebates and rate structures
• Identify strategies to mitigate high energy costs
• Compare best practices and case studies on EV rates and Time-of-Use options
• Discuss rates that balance the needs of large load customers such as data centers and industrial manufacturers
• Evaluate various Time-of-Use strategies
• Review rates and discount frameworks that address social equity and support low-income customers
• Evaluate the effectiveness of direct incentives versus return on equity
• Assess effective repayment and energy messaging strategies

Tuesday, December 17, 2024 : Central Time

 

9:00 – 9:15 a.m. :: Keynote Address and Opening Message

This opening message will highlight how strategic rate design can drive technology adoption, ensure affordability, and promote equity in the energy sector. The address will set the stage for further exploration of current trends, challenges, and opportunities, offering a roadmap for achieving sustainable and fair energy pricing.

Dan Hansen, VP, Christensen Associates Energy Consulting 

9:15 – 10:15 a.m. :: Electrification-Specific Marginal Cost Pricing of Electricity

• The primary barriers to electrification in densely populated states, particularly the high cost of electricity.
• Limitations of the current federal and state rebates in addressing the operating costs of electrification technologies like heat pumps and electric vehicles.
• Explore why time-varying rates alone are insufficient to overcome the high costs of electricity for effective electrification.
• Challenges and public concerns associated with changing rate levels through increased fixed charges or income–based charges.
• Examine the potential of technology-based marginal cost pricing as a solution to lower operating costs for specific electrification technologies without causing a public backsplash.
• The implementation of optional rates based on marginal costs pricing, incorporating AI to discern specific household load shapes, and their impact on electrification efforts.

Dr. Ahmad Faruqui, Economist -at-Large

10:15 – 11:00 a.m. :: Performance “Incentives”:  Cost-Based Compensation, or Reward for Resistance?

Many state utility commissions use return on equity (ROE) to reward or penalize specific types of performance.  The logic of this approach remains unexplained.  In ratemaking, the sole purpose of ROE is to compensate for the opportunity cost of equity capital.  That purpose is unrelated to operational performance.  The cost-effective way to induce performance is to induce the performers.  Shareholders do not perform; they invest.  The real performers are the workers—the executives, managers, and the line workers.  If we want better performance, we can pay them more.  Shareholder incentives are generic and illogical; worker incentives are surgical and logical. 

This session will evaluate the effectiveness of direct incentives versus return on equity.

Scott Hempling, Attorney at Law, Effective Regulation of Public Utilities

11:00 – 11:15 a.m. :: Morning Break 

11:15 a.m. – 12:15 p.m. :: PBR for the Energy Transition

PBR rates provide utilities incentives to improve operational efficiency, enhance performance, and encourage utilities to focus on cost-effective measures and innovative solutions. These rates can align utility incentives with broader policy objectives, such as decarbonization and energy conservation. PBR rates provide a flexible mechanism to adapt and align with evolving policy priorities.  

This session will discuss how to ensure that utilities operate within defined cost parameters. This helps prevent excessive cost pass-through to customers and promotes stability over the long term. 

Mark Lowry, President, Pacific Economics Group Research

12:15 – 1:15 p.m. :: Lunch Break

1:15 – 2:15 p.m. :: Case Study: The Impact of Electrification Measures on Costs and Rates

CORE Electric Cooperative will exit its long-term supply contract with a neighboring utility and enter a new supply contract with Invenergy beginning January 1, 2026. In addition to this, CORE is undertaking several upcoming projects related to rate design. This session will discuss how the evolving electrification practices – such as distributed generation, all-electric homes, and EV charging, etc., when combined with mostly renewable supply resources, will affect energy costs and rate structures. By analyzing real-world examples, the session will explore the financial implications and necessary adjustments in rate design to address these technological shifts, including current and future cost structures, net energy metering, EV charging, and time and seasonally differentiated rates.

David Stowe, Senior Rates Engineer, CORE Electric Cooperative  

2:15 – 2:30 p.m. :: Afternoon Break

2:30 – 3:15 p.m. :: Case Study: Duke Energy’s Comprehensive Rate Review and Innovative Rate Design

Duke Energy recently overhauled many of its retail rate schedules in the Carolinas through a Comprehensive Rate Review process.  Duke Energy’s presentation will discuss the Comprehensive Rate Review stakeholder process which informed Duke Energy’s rate design strategy.  Also, Duke Energy will review its new time-of-use rate designs, hourly pricing, and online tools that allow customers to save money on their bills.  Duke Energy will also cover how they are utilizing smart meter data and software to develop keen insights on customer usage and how these tools are helping them to inform rate design during rate case planning.

Teresa Reed, Director, Rates & Regulatory Planning, Duke Energy

3:15 – 4:00 p.m. :: Navigating Rate Design for Large Load Customers: Challenges, Strategies and Solutions in a Dynamic Energy Landscape  

As the energy landscape evolves, large load customers like data centers, blockchain operators, and industrial manufacturers are driving new demands on power systems. This presentation explores how these customers are defined by demand size, load factors, and unique operational needs. It will examine the forces propelling growth in this sector, from AI and cloud computing, to government incentives and onshoring trends. With a focus on rate design, we’ll discuss strategies to balance the needs of these energy-intensive customers while safeguarding the interests of current ratepayers.

The goal of this session is to develop pricing models that address the diverse requirements of large load users while ensuring a sustainable and equitable energy future.

Brian Boss, Accounting Instructor, Alexandria Technical and Community College, (Former Supervisor of Pricing and Large Load Development)

4:00 – 5:00 p.m. :: Panel: Social Equity Considerations in Rate Design/Low-Income Rate Design/Low-Income Discount Frameworks

This discussion will revolve around designing rate structures that consider the unique circumstances of low-income customers, such as income volatility, energy usage patterns, and limited access to energy efficiency measures. 

Moderator: Dan Hansen, VP, Christensen Associates Energy Consulting

Goksin Kavlak, Senior Energy Associate, The Brattle Group    

 

Wednesday, December 18, 2024 : Central Time

 

9:00 – 10:00 a.m. :: Mitigating High Energy Costs: Exploring Dynamic Pricing Strategies

This session will cover dynamic pricing strategies as part of a larger portfolio of strategies designed to mitigate high energy costs. It will explore how various dynamic pricing models, such as real-time pricing and critical peak pricing, can help provide more granular price signals to manage energy consumption and stabilize costs. 

Cindy Li, Program and Project Supervisor, Electric Rate Design, Public Advocates Office, California Public Utilities Commission

10:00 – 11:00 a.m. :: Modernizing Cost Allocation and Rate Design for a Changing Energy Landscape

This session will explore innovative approaches to cost allocation and rate design to support the adoption of grid-edge technologies, such as customer-owned distributed energy resources (DER) and demand response (DR). Key topics will include the use of affordability metrics like energy burden to inform regulatory decisions and strategies for addressing the growing cost risks posed by hyperscale loads, such as data centers and reshored manufacturing. Attendees will gain insights into these forward-looking concepts, which are applicable across both forward and historic test year jurisdictions.

Corey Singletary, Director, Regulatory Affairs, Citizens Utility Board

11:00 – 11:15 a.m. :: Morning Break

11:15 a.m. – 12:15 p.m. :: Case Study: Time-of-Use (TOU) Trends and Strategies

This session will use a case study to examine a phased approach to Residential TOU rate implementation, along with best practices for implementation of rate design to enhance grid stability and manage peak demand. The session will focus on the stakeholder process, rate design, and program evaluation of customer behavior and energy consumption.

Leah Peterson, Manager, Customer Analytics, Minnesota Power

12:15 – 1:15 p.m. :: Case Study:  Crafting Effective Consumer Communications 

This session will showcase upcoming research on repayment strategies and other effective energy messaging strategies, focusing on clear communication, increasing customer satisfaction and program adoption, as well as engaging at-risk consumers. 

The discussion will include case studies on electric vehicle (EV) rates and Time-of-Use (TOU) options, as well as successful community outreach and electrification campaigns. 

Jason McGrade, Deputy Director, Smart Energy Consumer Collaborative 

Brian Boss, Accounting Instructor, Alexandria Technical and Community College, (Former Supervisor of Pricing and Large Load Development)

Ahmad Faruqui, Economist-at-Large

Dan Hansen, Managing Director, Energy Practice, Christensen Associates

Scott Hempling, Attorney at Law, Effective Regulation of Public Utilities

Goksin Kavlak, Senior Energy Associate, The Brattle Group    

Cindy Li, Supervisor, Electric Rate Design, California Public Utilities Commission

Mark Lowry, President, Pacific Economics Group Research 

Jason McGrade, Deputy Director, Smart Energy Consumer Collaborative 

Leah Peterson, Manager, Customer Analytics, Minnesota Power

Teresa Reed, Director, Rates & Regulatory Planning, Duke Energy

Corey Singletary, Director, Regulatory Affairs, Citizens Utility Board

David Stowe, Senior Rates Engineer, CORE Electric Cooperative  

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.

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

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:

Advanced Rate Design for Cost Effective Tariffs

December 17-18, 2024 | Online

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 November 15, 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

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 1.1 CEUs for this event

Verify our IACET accreditation

Who recognizes IACET Credits?

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.

Instructional Methods

Case Studies, Panel Discussions and PowerPoint presentations

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

Conference CPE Credits: 12.5 for the conference
There is no prerequisite for this conference.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: 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 executives
• Corporate communication professionals
• Contact center management professionals
• 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
• Consumers advocates