UTILITY FINANCE AND ACCOUNTING FOR  NON-FINANCIAL PROFESSIONALS

AND UTILITY FINANCE AND ACCOUNTING FOR ATTORNEYS

 

WEBINARS

Format:  4 Days. 11 AM to 5 PM Eastern Time.  One hour break for lunch.

 

August 3 – 6, 2020

October 5 – 8, 2020

January 18 – 21, 2021

March 15 – 18, 2021

May 17 – 20, 2021

 

Webinars are presented live on the web using Zoom. This will have the same content as the seminars we give at hotels, but spaced over four days instead of three days.  Dr. Joel Berk will be presenting, live, with Q&A and group projects throughout. We will send you, in advance of the webinar, printed copies of the materials which you will use during the four days.

Earn 22 CPE credit for CPA’s for both webinars. We will apply for CLE credit for lawyers for the Non-Financial Professionals webinar.

Register Me

UTILITY FINANCE AND ACCOUNTING FOR  NON-FINANCIAL PROFESSIONALS

Brochure

INSTRUCTOR:

Dr. Joel Berk

CPE CREDIT for CPAs available for all States and CLE CREDIT for lawyers: available in most states

LEARNING OBJECTIVE:

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)



APPROACH:

Lecture and discussion with a note-taking outline provided to each participant. Extensive use of:



  • A non-debit and credit approach


  • Problem solving sessions


  • Homework assignment


  • Actual utility financial statements


  • Interaction with other participants


  • Group case work



OUTLINE OF THE WEBINAR TOPICS

 

Introduction

————————————————————————

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
– Advertising
– Take or Pay Contracts

Ethics Considerations

————————————————————————

Modifications to Rate of Return Regulation
– Adjustment Clauses, Trackers, Riders, Deferrals
– Rate Freezes, Decoupling
– Pre-approvals
– Formula Ratemaking

————————————————————————

Present Value Analysis

————————————————————————

Shareholder Value
– Theory
– 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

———————————————————————–

Income Taxes
– 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

————————————————————————

Conclusions

 

 

For a list of organizations who have sent people to our classes, look at our previous participant list.