A surprising number of utility employees do not understand how their utility makes money! This How Utilities Make Money learning course explains the basics in simple and easy-to-understand terms. This online 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. In addition to answering the question "How do utilities make money?", 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. Upon completing the online learning path, learners will be able to explain to those who ask questions such as "How do electric utilities make money?" and "How do gas utilities make money?" 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:
- Introduction
- How a Competitive Company Makes Money
- 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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