NARUC Annual Eastern Rate School

The NARUC Annual Eastern Rate School is a hands-on, comprehensive course designed to educate participants on the fundamentals of utility accounting and rate making through practical engagement in a mock utility rate case. The course provides a deep dive into various essential topics, including understanding utility rate setting basics, financial statements for regulated utility companies, and the methodologies guiding regulated utility rate making. Participants will learn how to choose the appropriate test year for the revenue requirement, develop a rate base, and create a mock rate case, gaining insights into sample adjustments. The curriculum enables learners to calculate the rate base and revenue requirement and design rates for regulated utilities while understanding operating expenses, trackers, depreciation, and taxes related to utility rate making.A significant component of the course is the exploration of the capital structure of utilities, encompassing the weighted average cost of capital, rate of return, and return on equity, along with their implications on the revenue requirement and how these elements are perceived by Wall Street. Additionally, the course emphasizes the consumer perspective on regulated utility finance and examines various rate designs pertinent to the industry. The program is tailored for a diverse audience, including State Commissioners, Policymakers, Municipal Utility Officials, Commission staffers, Administrative Law Judges, Accountants, Auditors, Financial Analysts, Consumer Advocates, Attorneys, Engineers, Economists, Journalists, and Wall Street Analysts, all of whom will find value in the comprehensive curriculum. The NARUC Rate School is organized by the National Association of Regulatory Utility Commissioners and has a historical background, having been initiated in Florida in 1973 by the NARUC Committee on Water. The Fall Rate School is hosted in Clearwater Beach, Florida, while the Spring Rate School has been conducted in various locations since its inception in Utah in 1980, with the current venue being San Diego, California. The course material is consistently developed by a dedicated group of elite volunteer instructors and coaches, ensuring that participants receive personalized attention through limited enrollment. This structure allows for meaningful engagement and learning experiences, promoting diverse perspectives from accounting, engineering, legal, and governmental actions, as well as insights from consumer advocates and utility company employees. The NARUC Rate School aims to facilitate a more effective learning environment through active participation in mock rate cases rather than passive lecture attendance.