"Essentials of Regulatory Finance" provides participants with the skills needed to apply the principles of corporate finance to utilities.
Combining intensive instruction on theory and application, supplemented by real life examples, ERF provides the equivalent of graduate level instruction under the guidance of one of the most highly respected academics in energy finance.
Classwork consists of lectures and problem sets that illustrate the nuances of finance issues in this complex sector under the current regulatory environment.
Day One
Registration and continental breakfast open at 8:30 a.m. Program begins at 9:00 a.m.
The Regulatory Process: Overview and Key Issues
• Cost of service, revenue requirements and rate cases
• Computation of revenue requirements
• Rate base and rate of return
• Rate case issues in the current regulatory environment
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Capital Allocation and Economic Value Creation
• Net Present Value (NPV) vs. revenue requirements
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Risk Analysis and Financial Statements
• Accounting vs. economic metrics
• Essential ratios for measuring risk and performance: Interest coverage, fixed charge coverage, dividend payout, ROE, market value-to-EBITDA, ROTC
• Impact of business risk and competition on financial ratios
• Risk profile of utilities
• Influence of unregulated activity
• Impact of the current financial environment
Determining Credit Ratings
Rate of return and value creation
• Spread and return on invested capital (ROIC)
• Linking capital budgeting and returns
Cost of Capital and Capital Structures
• Understanding risk and return in capital markets
• Modern portfolio theory and asset pricing models
• Cost of equity methodologies and illustrations
• Practical applications illustrated through case study
• Divisional cost of capital - unbundling risk and return across segments: generation vs. transmission vs. distribution
 Capital Structure Issues
• Appropriate capital structures in a restructured regulatory environment
• Optimal capital structure simulation model
• Double leverage
• Case Study: Florida leverage formula
Day One ends at approximately 5:00 p.m.
Day Two
Continental breakfast opens at 8:00 a.m. Program begins at 8:30 a.m.
Utility Applications and Cutting Edge Techniques
• Contemporary rate of return techniques
• The new performance metrics applied to utilities
• Cutting edge techniques in capital allocation
• Case studies
 Performance-based Regulation: Alternatives to Traditional Ratemaking
• Focused vs. integrated rate of return incentives
• Price cap regulation
• Market basket ratemaking
• Innovative rate mechanisms
Risk-mitigating Mechanisms and Regulatory Policies
Program concludes at approximately 4:00 p.m.
This live group seminar is eligible for 14.5 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.
Corporate finance, treasury, investor relations or corporate strategy/development professionals at power or gas companies. Professionals in investment banking, project finance or equity-fixed-income research. Traditional asset managers, as well as asset managers and investors at private equity, sovereign and hedge funds. Consultants, accountants and lawyers who advise power and gas clients.
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Industry regulators and staff
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Ratings agency professionals
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Others seeking a thorough understanding of corporate finance issues and analyses for regulated utilities
This program presumes an understanding of basic accounting and finance concepts, as well as familiarity with utility business models.
Attendees leave SNL Energy training seminars with practical tools and greater insight into the power sector, delivered by professionals from within the power sector who have successfully faced the same challenges you face in areas that include rate cases, utility mergers and acquisitions,utilities accounting, credit analysis and valuation. Try us out, and learn why over 1,000 energy companies, commercial and investment banks, investment managers, regulators, and others trust SNL Energy to provide their professionals with market leading training and intelligence solutions.