CPE CREDIT for CPAs available for all States and CLE CREDIT for lawyers: available in most states
To provide a working understanding of finance and accounting as applied to both the regulated utility and non-regulated companies (competitors, customers and the future utility company).
Upon completion of the seminar, participants will be able to:
Understand accrual accounting
“Read” an annual report of the company or its customers
Calculate key financial ratios
See the link between finance and accounting and the strategic plans of the company
Understand how a utility makes money now and what needs to be done for the future
Analyze whether shareholder value is being created as opposed to net income
Do a capital budgeting analysis (engineering economics)
Lecture and discussion with a note-taking outline provided to each participant. Extensive use of:
A non-debit and credit approach
Problem solving sessions
Actual utility financial statements
Interaction with other participants
Group case work
OUTLINE OF THE WEBINAR TOPICS
Basic Accounting Concepts
– Balance Sheet
– Income Statement
Financial Statement Analysis
– Return on Equity
– Total Shareholder Return
The Utility’s Four Sets of “Books”
– GAAP, Tax, Rates, Managerial
– Cost of Service Regulation
– Rate Base, Operating Expenses, Allowed Return
– Above-the-line versus and Below-the-Line Expenses
Mock Rate Case
– Take or Pay Contracts
Modifications to Rate of Return Regulation
– Adjustment Clauses, Trackers, Riders, Deferrals
– Rate Freezes, Decoupling
– Formula Ratemaking
Present Value Analysis
– Income versus Shareholder Value Maximization
– Risk Considerations
– How to Make Decisions
Accounting for Utility Plant
– Straight Line Depreciation
– Accelerated Depreciation
– Capitalization Versus Expense
– Methods of Capitalizing More or Less
– Which is Better for the Utility
– Temporary Differences
– Deferred Taxes (Normalization)
Cost of Capital
– Weighted Average Cost of Capital
– Risk Premium Approach
– Discounted Cash Flow (DCF) Method
Capital Project Analysis Review Case
– Cash Flow as affected by Taxes & Rate Regulation
– Which Discount Rate to Use
– Creating Shareholder Value
HOTEL AND CITY INFORMATION
129 East Fremont Street
Las Vegas NV 89101
We have reserved a block of rooms at the hotel where the seminar will be held. Book early. The block of rooms well be held open until a month before the seminar. This is an AAA four diamond hotel but we negotiated a low weekday rate. To get the rate click on the link below or call (800) 331 5731 and use the one of the code below to get our group rate. You will probably want to make a reservation arriving the day before the seminar.
$99 plus $20 resort fee per day
Oct 5–7, 2021 Group Code: GSFAI21
Click link: https://lasvegas-reservations.goldennugget.com/classic/en/special_offer?action=show&controller=landings&locale=en&rate_code%5B%5D=GSFAI21&rate_code%5B%5D=GSFAI21&starting_page=special_offer&vr=3
If you are staying at the hotel, the newer tower is the Rush Tower. In any case, when you check in you should ask for a room away from Fremont Street (which can be noisy at night.)
We will have a Continental Breakfast each morning and Lunch will be provided and we hope you can join us for cocktails after class the first day.
Class begins at 8 AM ends at 4 PM (except last day we end at 3).
Dress is casual but you could bring a sweater or jacket as the temperature in the meeting room may vary. Also please bring a yellow highlighter.
Oct 26-28, 2021
Omni Parker House
60 School Street
Boston, MA 02108
We have reserved a block of rooms at the hotel where the seminar will be held at $299 per night. Book early. The block of rooms well be held open until a month before the seminar. You will probably want to make a reservation arriving the day before the seminar.
Click for Hotel Reservation: https://www.omnihotels.com/hotels/boston-parker-house/meetings/fai-10222021
We will have a Continental Breakfast, lunch each day and we hope you can join us for cocktails after class the first day.
Class begins at 8 AM and ends at 4 PM (except the last day we end at 3).
Dress is casual but you could bring a sweater or jacket as the temperature in the room may vary. We will be going out of the hotel for lunch each day (paid for by FAI) so if weather looks bad you may want to bring an umbrella to class.
For a list of organizations who have sent people to our classes, look at our previous participant list.