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One-time enrollment · 12-month access

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THIS COURSE INCLUDES
  • Video lessons on each step of the rate process
  • A worked cooperative example, Clearwater Electric
  • Student handbook with key formulas and a pre-vote checklist
  • Review questions with explanations
  • Certificate of completion
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Ratemaking for Non-Financial Professionals

How electric rates are set, explained for the people who vote on them

Every rate vote starts with the same questions: how much does the utility need, who should pay, and how fast. This course walks you through the answers in plain language, with no accounting background needed.

★★★★★  5.0
CPE Hours
|  Self-Paced Video
|  Basic Level
|  NASBA Registered
▶ Watch Free Course Preview

This course explains how electric rates are set. It is written for board members, council members, commissioners, attorneys, and regulatory staff who do not have an accounting background.

A sample cooperative, Clearwater Electric, carries through the lessons, and a second cooperative, Prairie View, is used in the exercises. You build a revenue requirement, see what belongs in rate base, learn how fixed, energy, and demand charges reach the bill, and follow a rate case from filing to final order. The same standard applies to investor-owned, cooperative, and municipal utilities.

You finish with five tests of a rate decision and a list of questions to ask before you vote.

Know What You Are Voting On

About This Course

Who This Course Is For

  • Utility board members and cooperative directors
  • City council members and public power oversight staff
  • Public utility commissioners and regulatory staff
  • Attorneys who work on utility matters
  • Anyone who reviews a rate proposal without an accounting background
Your Instructor

Taught by a Nationally Recognized Utility Accounting Expert

Russ Hissom, CPA
Principal, UtilityEducation.com · 35+ Years of Industry Experience
Russ Hissom is a national utility accounting and rate expert with 35+ years of hands-on experience helping electric cooperatives and utilities improve accounting processes, strengthen financial performance, and design fair, sustainable rates. He has provided expert witness testimony before FERC, state commissions, and in arbitration proceedings — and has trained 1,000+ utility and cooperative finance professionals nationwide.
Learning Objectives

This Course Will Provide You With the Knowledge To

✓

Explain why electric delivery is regulated and how the regulatory compact applies to investor-owned, cooperative, and municipal utilities.

✓
Calculate a revenue requirement from operating expenses, depreciation, taxes, and the return on rate base.
✓
Describe what is included in rate base, why customer-funded plant is excluded, and how a capital project affects the revenue requirement.
✓
Explain how fixed, energy, and demand charges recover the costs of serving customer classes.
✓
Describe the steps and participants in an investor-owned rate case and how cooperative and municipal rate decisions are made.
✓
Apply a set of tests and questions to a proposed rate decision before voting.
The Learning Experience

How You'll Learn

✓
Short Lessons, Not Long Lectures - Focused video lessons you can fit around your workday.
✓
Interactive Videos - Questions, activities and interactive content inside each video keep you engaged.
✓
Hands-On Practice - Exercises let you test your judgment and reinforce key points.
✓
Job-Ready Toolkits - Downloadable tools and guides for future reference or on the job.
✓
Practical Applications - Apply concepts to realistic situations.
✓
Built-In Reinforcement - Review questions throughout the course support retention of the material.
Student Feedback

What Our Students Say

"Very good overview of the introduction to the electricity business. I just recently started a job with a utility and am taking some courses to learn as much as possible. Will definitely be taking another course!"
— Jennifer
"This was an incredible overview! I cannot wait to share this with others. I LOVED how you explained things. You have great speaking and explanation skills."
— Nicole
"I came looking for an introduction to utilities course and I'm glad I took this one. Russ explained everything really well. I will be taking more courses!"
— Kritant
Course Curriculum

What You'll Learn

Course Accreditation

Course #
FT-15
Area of Study
Finance – Technical
Delivery
QAS Self Study
Prerequisites
None
Last Reviewed
Passing Grade
70%
Adv. Preparation
None
Program Level
Basic
NASBA CPE Credits

Why Rates Are Regulated

Why electricity delivery is a natural monopoly, the regulatory compact, and the three ownership models that run through every lesson.

  • Natural monopoly and the regulatory compact
  • Just and reasonable rates
  • Investor-owned, cooperative, and municipal regulators
  • Cost-of-service pricing and the prudent cost standard

The Revenue Requirement

The total amount rates must collect, built from four components, with the Clearwater Electric Cooperative figures.

  • Operating expenses, depreciation, taxes, and return
  • Return on rate base
  • What pushes the requirement up
  • The revenue gap

Rate Base

What earns a return, what does not, and why every capital project is also a rate decision.

  • Used and useful, and prudent
  • The Clearwater rate base
  • Customer-funded plant (CIAC)
  • How a capital project reaches the bill
  • Large loads

Rate Design Basics

How the revenue requirement becomes customer bills.

  • Cost of service study and customer classes
  • Fixed, energy, and demand charges
  • How demand is measured
  • Rate design trade-offs

The Rate Case Process

Who files, who intervenes, and what regulators decide for each type of utility.

  • The six stages of an investor-owned rate case
  • Test year and participants
  • Cooperative and municipal processes
  • Regulatory lag, adjustment clauses, and decoupling

What Commissioners and Board Members Vote On

The decisions that come before governing bodies and the questions to ask before voting.

  • Rate level, design, shock, and equity
  • Five tests of a rate decision
  • Red flags and green flags
  • Questions to ask before voting
Inside the Course

See the Course in Action

Common Questions

Questions You May Have

Not Sure Where to Start?

Enroll Now — >Watch Free Course Preview
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