Co-op & Utility Rate Study Fundamentals: Revenue Requirements, Cost of Service & Rate Design
A practical introduction to the electric ratemaking process — how revenue requirements are built, how costs are allocated across customer classes, how rates are designed, and what questions boards and management should ask when reviewing or approving a rate study.
- 14 lessons · 1 hour of video
- Downloadable PDF & Excel materials
- Real utility rate design examples
- Review questions in each module
- NASBA-compliant final exam (5 questions)
- Certificate of completion (1.00 CPE)
Understand How Electric Rates Are Really Built
Electric rates don't appear out of thin air. They're the end result of a carefully structured process that starts with a revenue requirement, flows through a cost-of-service study, and ends with a rate design that allocates costs fairly across customer classes. This course walks you through that entire process in plain language.
You'll learn how financial and operational inputs drive rate adjustments, how the rate of return on infrastructure investments is determined, and how rate design choices affect customer behavior, revenue stability, and fairness. The course also addresses what board members and management should be asking when reviewing or approving a rate study — a practical perspective that helps govern the process, not just observe it.
Examples from public power, cooperatives, and municipal utilities are included throughout to ground the concepts in real utility practice.
- Finance and accounting staff new to utility ratemaking
- Board and council members reviewing rate study results
- Operations and engineering staff involved in cost allocation discussions
- New employees in utility finance or regulatory roles
- Consultants and analysts building foundational rates knowledge
Russ Hissom, CPA
Russ Hissom, CPA is a principal of UtilityEducation.com, providing on-demand professional education in FERC, RUS, FASB, and GASB accounting, finance, and ratemaking for electric utilities and cooperatives. With over 35 years of hands-on industry experience, he brings real-world expertise to a modern learning platform trusted by more than 1,000 professionals.
What You'll Be Able to Do After This Course
Inside the Course
Course orientation, learning objectives, and downloadable course materials.
- 1. Welcome to Rate Study Fundamentals Free Preview
- Lesson Menu / Index
- 2. Course Overview
- 3. Learning Objectives
- 4. Course Materials Download
- 5. Course Goals
Walk through the complete electric ratemaking process — from revenue requirements and cost-of-service analysis to rate design and customer billing.
- 6. Introduction to Electric Ratemaking
- 7. Review Questions — Part 1
- Thought Break
Identify the key questions boards and management should ask when evaluating a rate study — and understand the answers that drive sound decisions.
- 8. Questions and Key Information for Sound Rate Study Decisions
- 9. Review Questions — Part 2
Review key takeaways and pass the final exam to earn your 1.00 CPE certificate.
- 10. Course Summary & Key Takeaways
- 11. Course Evaluation
- 12. Final Exam
Trusted by Over 1,000 Utility Professionals
"I was new to utility finance and had no idea how rates were set. This course gave me a clear picture of the whole process from revenue requirement to customer bill."
"As a new board member I never felt confident reviewing our rate consultant's work. This course gave me the questions to ask and the framework to evaluate the answers."
"The explanation of how cost-of-service allocations work across customer classes was the clearest I've seen. I finally understand why rates differ by customer type."
"Exactly what the title says — fundamentals done right. The rate design section helped me understand the tradeoffs our management team debates every rate cycle."
"I work in accounting and always felt lost when rate study time came around. This course bridged the gap between what I record and why the rates are what they are."
"The board questions module is genuinely useful. I've shared it with our entire board as prep material before our next rate study review."
Frequently Asked Questions
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Master Rate Study Fundamentals
Understand how electric rates are built — and earn 1.00 NASBA CPE credit.
Utility Accounting and Rates Specialists, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBAregistry.org.
Requests for refunds must be made in writing within 30 days of purchasing the course. No refunds will be granted after the qualified assessment has been completed. For any concerns, please contact us at 608-628-4020 or at russ.hissom@utilityeducation.com.
Course materials are provided for informational and educational purposes only. They do not constitute legal, accounting, or professional advice. © 2026 Utility Accounting & Rates Specialists, LLC. All rights reserved.