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One-time enrollment · 12-month access
Enroll NowGroup pricing available →Build the financial strength your utility needs to weather storms, fund capital projects, and earn — or protect — an investment-grade credit rating. This course walks through reserve targets, written financial policies, and the credit metrics rating agencies actually look at, so you can defend your reserve position at the board table and in a rate case.
CPE Hours
Reserves and financial strength don't happen by accident — they're built through deliberate policy, disciplined multi-year planning, and a clear understanding of how outsiders (rating agencies, regulators, and your own governing board) judge your financial position. This course breaks down the five reserve categories every electric utility should target, shows you how to defend those targets at a rate proceeding, and walks through the credit metrics — DSC, TIER, days cash on hand, equity ratio, and operating ratio — that determine your bond rating.
Whether you're building your first reserve policy or trying to explain to your board why "we have money in the bank" isn't the same as "we have adequate reserves," this course gives you the framework, the benchmarks, and the language to make the case.
Explain the three components of municipal utility net position — net investment in capital assets, restricted net position, and unrestricted net position — and clarify why total net position cannot be treated as distributable cash
Course materials are provided for informational and educational purposes only. They do not constitute legal, accounting, or professional advice. Users should consult their own qualified legal, accounting, or other professional advisors regarding their specific circumstances.
Course introduction, overview, learning objectives, and roadmap — plus downloadable course materials to follow along. | 1.1 – Introduction: Cash Reserves and Financial Strength | 1.2 – Welcome! Course Overview and Learning Objectives | 1.3 – Your Course Roadmap! | 1.4 – Course Materials
Breaks down the components of municipal utility net position and what they mean for governance and reserve strategy. | 2.1 – Understanding Municipal Utility Net Position
Covers the five reserve categories and how to calculate target reserve levels within your revenue requirement | 3.1 – Cash Reserves and the Revenue Requirement | 3.2 – Exercise: Reserve Concepts
GFOA best-practice guidance for written financial policies and building a 5-year capital and financial plan | 4.1 – Financial Policies and Multi-Year Planning | 4.2 – Review Questions 1
The five credit metrics rating agencies use to evaluate utility bonds, the qualitative factors behind them, and a scenario exercise to apply what you've learned. | 5.1 – Bond Ratings and Rating Agency Criteria | 5.2 – Solve This Scenario
Brings the five-pillar financial strength framework together into an action plan | 6.1 – Putting It All Together! | 6.2 – Review Questions 2 | 6.3 – Course Evaluation | 6.4 – Final Exam | 6.5 – What We Learned and Your Next Steps
