A surprising number of utility employees do not understand how their utility makes money! How Utilities Make Money explains the basics in simple and easy-to-understand terms. This learning path introduces basic financial concepts for a non-regulated company (a lemonade stand) and then compares these concepts to those that apply to a regulated utility. The learning path also explains the basic concepts of utility regulation, why a utility operates under rules different from non-regulated companies, and how rates are set such that the utility has the opportunity to collect enough to cover expenses as well as a reasonable return on its equity. Included are practical examples and exercises to help learners understand basic financial concepts and the unique way in which utilities earn a profit.
This course comprises the following modules:
- Business Basics for Competitive Companies
- How and Why Utilities Are Regulated
- Business Basics for Regulated Utilities
- How Utility Rates and Earnings Are Determined
- How Utilities Can Exceed or Fall Short of Authorized Earnings
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