Following is a more detailed outline of content contained in the Ratemaking for Co-ops online course.

Introduction to Ratemaking

• What ratemaking is and what it does
• Why ratemaking is fundamental to a co-op's financial stability and consumer-member satisfaction
• Who regulates rates for co-ops
• Principles behind setting rates
• The concept of cost-of-service ratemaking
• How rates relate to a co-op's financial objectives
• Non-financial considerations for rates
• The ratemaking process
• When and how new rates are initiated
• How proposed rates are analyzed
• Timing for developing and implementing new rates

Determining the Revenue Requirement

• What the revenue requirement is
• How actual revenues relate to the revenue requirement
• Steps in determining the revenue requirement
• The project team
• Selecting a test year
• Collecting data
• Determining appropriate adjustments to test year data
• The margin requirement and achieving financial goals
• Calculating the revenue requirement
• Reviewing a proposed revenue requirement

Allocating the Revenue Requirement

• What revenue allocation is
• The cost-of-service study
• Steps in the cost-of-service process
• Defining customer classes
• The cost allocation process
• Functionalizing costs
• Classifying costs
• Determining an appropriate margin
• Developing allocation factors
• Implementing revenue allocation to determine each class's revenue

Determining Rate Design

• What rate design is
• The steps in the rate design process
• Balancing the various rate principles
• Determining cost causation
• Determining customer classes
• Technology impacts on ratemaking
• Determining charge types and structures for each customer class
• Determining other charges and fees
• Determining payments for DER services
• Allocating revenue to each charge type

Calculating and Implementing Rates

• The steps in the rate calculation process
• Determining rate impacts
• Setting a rate implementation plan
• Communicating rate changes
• Helping consumer-members manage rate impacts
• Monitoring newly implemented rates

Evolution of Ratemaking

• Ongoing monitoring of rates
• The electric industry evolution
• Potential new co-op services
• How industry evolution impacts a co-op's rate practices
• Rate design innovations
• Adapting to continual change