157

One-time enrollment · 12-month access

THIS COURSE INCLUDES

Video lessons on each statement and ratio
Three sample utilities: public power, cooperative, investor-owned
Student handbook with formulas and a ratio scorecard
Review questions with explanations
Certificate of completion for 1.6 NASBA credits

Reading Utility Financial Statements for Non-Financial Professionals

A plain-language guide for board members, council members, commissioners, department heads, consultants, and regulatory staff

You vote on rates, budgets, capital planning, and borrowing. The co-op and utility's financial statements are the report card behind every one of those decisions. This course shows you how to read them, with no accounting background needed.

★★★★★ 5.0

1.6

CPE Hours

| Self-Paced Video

| Basic Level

| NASBA Registered

▶ Watch Free Course Preview

This course teaches you how to read and analyze the financial statements of an electric utility or cooperative. It is written for people who oversee utilities but do not work in accounting: board members, council members, commissioners, department heads, consultants, and regulatory staff.

Three sample power and utilities organizations carry through every lesson: a public power system, a cooperative, and an investor-owned company. You see the same statements, ratios, and questions applied to each ownership model, so you can read any utility's annual report with confidence.

You finish with a five-step reading order for an annual report and six questions to ask management.

Analyze the Financials, Ask the Right Questions, and Make Informed Decisions

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 utility annual report 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

✓

Read and interpret a utility balance sheet and income statement for a publicly owned, cooperative, or investor-owned electric utility.

✓

Calculate and explain the debt ratio, times interest earned, return on equity, and operating ratio.

✓

Explain what earned return means and why regulators compare it with the allowed return.

✓

Explain how cooperatives and public power utilities are tested through TIER, OTIER, and debt service coverage.

✓

Identify warning signs in a utility's financial performance, such as sliding coverage, non-cash margins, shrinking cash, and deferred costs.

✓

Apply a reading order and a set of questions to a utility annual report to prepare for a conversation with management.

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-14

Area of Study

Finance – Technical

Delivery

QAS Self Study

Prerequisites

None

Last Reviewed

10/23/26

Passing Grade

70%

Adv. Preparation

None

Program Level

Basic

1.6

NASBA CPE Credits

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.

Why Financial Statements Matter

Why a board member, council member, commissioner, or regulatory staff member reads the statements, and the three sample utilities that run through every lesson.

Rate decisions, borrowing costs, and financial health
Public power, cooperative, and investor-owned: who owns and who governs
What is in an annual report
Meet Riverbend, Cedar Valley, and Prairie

The Balance Sheet

A snapshot of what the utility owns, what it owes, and what is left for the owners.

Assets = Liabilities + Equity
Utility plant, the largest asset
Debt, the largest liability
Net position, patronage capital, and common equity
The three sample balance sheets

The Income Statement

A year of revenues and costs, and where the bottom line goes for each type of owner.

Where a revenue dollar goes
Operating and non-operating items
Depreciation: a cost with no check
The three sample income statements
Bottom line: transfers, capital credits, and dividends

Key Financial Ratios

Four numbers that turn the statements into answers, and what to ask about each one.

Debt ratio
Times interest earned (TIER)
Return on equity
Operating ratio
The ratio scorecard for the three utilities

Earned Return and Financial Health

What regulators, lenders, and bondholders look for, and how it differs by ownership.

Earned return versus allowed return
Why regulators care about the gap
TIER, OTIER, and debt service coverage
What healthy looks like for each type of utility

Reading a Real Utility Report

A guided walk through a full report, with the questions to ask and the red flags to watch for.

A five-step reading order
The auditor's letter
Red flags and spotting the trend
Six questions to ask any utility

Inside the Course

See the Course in Action

Reading Utility Financial Statements for Non-Financial Professionals

Common Questions

Questions You May Have

Do I need an accounting background?

No. The course is written for board members, council members, commissioners, department heads, consultants, and regulatory staff. Every term is explained in plain language, and you learn by working through three sample utilities.

Will I be able to use this with my own utility's annual report?

Yes. The final module gives you a five-step reading order and six questions to ask management, so you can apply the same approach to any utility's annual report.

What if I have more questions?

We welcome your questions anytime. Email russ.hissom@utilityeducation.com or call 608-628-4020.

Which types of utilities are covered?

Three sample utilities run through every lesson: a public power system, an electric cooperative, and an investor-owned utility. You see how the same statements and ratios read differently for each ownership model.

What is included and how long do I have access?

All video lessons, the student handbook with formulas and a ratio scorecard, and review questions are included. Course access is for 12 months from the date of purchase.

Are courses eligible for NASBA CPE credits?

Yes. This course is approved for 1.6 CPE credits through NASBA. Upon successful completion and a passing grade of 70% or more on the final exam, you receive a Certificate of Completion that meets NASBA documentation standards.

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.

Refund & Cancellation Policy

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.

Legal Note

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Reading Utility Financial Statements for Non-Financial Professionals