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Agenda: AGA Rates School

June 8-11, 2009
Center for Business and Regulation
University of Illinois at Springfield
UIC Student Center East (SCE)
750 South Halsted Street Chicago, IL

The American Gas Association four day program offers intensive study of the natural gas industry and its regulation. Taught by recognized experts in the field, this program focuses on the details of ratemaking through intensive classroom work, study groups and lectures. This program is sponsored by the Center for Business and Regulation in the College of Business and Management at the University of Illinois at Springfield. The course will be held at the University of Illinois’ Chicago campus.

Daily Schedule

Monday

  • 8:15 am – 5:00 pm Classroom work
  • 5:00 pm – 6:00 pm Welcome Reception
  • 7:00 – ? pm Case Study Team Prep

Tuesday

  • 8:15 am- 5:00 pm Classroom work
  • 6:00 – ? pm Case Study Team Prep

Wednesday

  • 8:15am – 5:00 pm Classroom work
  • 6:30 – 8:30 pm Reception, Dinner and Speaker

Thursday

  • 8:15 – 12:00 pm Case Study Presentation and Panel Discussion

Agenda

Monday
June 8, 2009

7:30 a.m. – 8:15 a.m.

Registration and Continental Breakfast

SCE Room 613

8:15 a.m. – 8:30 a.m.

Introductory
Remarks

Karl McDermott, Center for Business and  Regulation, University of Illinois at Springfield

SCE Room 605

8:30 a.m. – 10:00 a.m.

Accounting Issues

Joel Berk, Financial Accounting Institute
Basic utility accounting concepts & transactions
Sample transaction worksheet
Financial statement preparation

SCE Room 605

10:00 a.m. – 10:15 a.m.

Break

SCE Room 613

10:15 a.m. – 11:30 a.m.

Accounting Issues

Joel Berk, Financial Accounting Institute

SCE Room 605

11:30 a.m. – 12:30 p.m.

Lunch

SCE Room 613

12:30 p.m. – 2:45 p.m.

Regulation and Ratemaking

Eric Meinl, National Fuel


Characteristics of regulated companies and regulatory commissions
Ratemaking objectives and formula
Revenue requirement concepts

SCE Room 605

2:45 p.m. – 3:00 p.m.

Break

SCE Room 613

3:00 p.m. – 4:30 p.m.

Workshop
on Cost of Service Issues

Eric Meinl, National Fuel

Determining Revenue Requirement

Typical Rate Case Adjustments

SCE Room 605

4:30 p.m. – 5:00 p.m.

Pipeline
and LDC Case Study

Russell
Feingold, 
Black
and Veatch

Richard
Smead,
Director, Navigant Consulting, Inc.

Familiarization with two rate cases and guidance on
solving key

Typical Rate Case Adjustments

SCE Room 605

5:00 p.m. – 6:00 p.m.

Welcome
ReceptionRefreshments and discussion
All Participants

 SCE East Terrace

6:00 p.m. – 7:00 p.m.

Dinner
On your own
All
Participants

7:00 p.m. – ?

Pipeline
and LDC Case Study Team Preparation

Study Groups                                      All Participants

Tuesday
June 9, 2009

7:30 a.m. –
8:15 a.m.

Continental Breakfast

SCE Room 613

8:15 a.m. – 10:00 a.m.

Utility
Pricing Fundamentals

Karl McDermott, Professor
of Business and Government, University of Illinois at Springfield and Center
for Business and Regulation

Carl Peterson, Professor
of Economics,
University of
Illinois at Springfield and Center for Business and Regulation

Characteristics of good pricing

Marginal Cost Pricing

Price Elasticity of Demand

SCE Room 605

10:00 a.m. – 10:15 a.m.

Break

SCE Room 613

10:15 a.m. – 12:30 p.m.

Risk
and Rate of Return

Charles
Harder,
Senior Counsel, CenterPoint Energy

Cost of Capital

Capital Structure

Return on Equity Calculations

SCE Room 605

12:30 p.m. – 1:30 p.m.

Lunch

SCE Room 613

1:30 p.m. –
3:15 p.m.

Traditional
& Unbundled Co. Gas Rate Design

Russell
Feingold,
Black and Veatch

The LDC rate design process

Cost allocation concepts and principles

Traditional rate design & unbundled transportation
service

PGAs and other automatic adjustment mechanisms

SCE Room 605

3:15 p.m. –
3:30 p.m.

Break

SCE Room 613

3:30 p.m. –
5:00 p.m.

Pipeline
Co. Rate Design

Richard
Smead,
Director, Navigant Consulting, Inc.

Pipeline cost allocation

Straight fixed variable rate design

Interruptible service issues

SCE Room 605

5:00 p.m. –
6:00 p.m.

Dinner

On your own

7:00 p.m. – ?

Pipeline
and LDC Case Study Team Preparation

Study Groups

Wednesday
June 10, 2009

7:30 a.m. –
8:15 a.m.

Continental Breakfast

SCE Room 613

8:15 a.m. –
10:15 a.m.

Case
Study Presentations

Russell
Feingold and Richard Smead
Illustrative
rate case issues
Views and positions of parties
Practical rate making solutions

SCE Room 605

10:15 a.m. –
10:30 a.m.

Break

SCE Room 613

10:30 a.m. –
12:30 p.m.

Gas
Supply Planning Fundamentals

Ken Yagelski, Concentric
Energy Advisors
Load forecasting
Commodity purchasing strategies
Asset optimization

SCE Room 605

12:30 p.m. –
1:30 p.m.

Lunch

SCE Room 613

1:30 p.m. –
3:00 p.m.

Energy
Efficiency and Conservation

Jeff Daugherty, CenterPoint Energy
Economics of Energy Efficiency
Making the Most of Energy Efficiency Dollars
Program Design and Customer Acceptance

SCE Room 605

3:00 p.m. –
3:15 p.m.

Break

SCE Room 613

3:15 p.m. –
4:45 p.m.

Innovative
Rate Design: Decoupling and Other New Rate Mechanisms

Valerie Grace, Manager, Rates, People’s Gas
Fixed cost recovery techniques
Revenue decoupling
Rate stabilization mechanisms

SCE Room 605

6:00 p.m. –
6:30 p.m.

Reception

SCE East Terrace

6:30 p.m. –
7:30 p.m.

Dinner

 SCE East Terrace

7:30 p.m. –
8:30 p.m.

Financial
Community View of Gas Industry

Richard Cortright, Standard & Poor’s,
Importance of Regulation
Attributes of Healthy Gas Utility

 SCE East Terrace

Thursday
June 11, 2009

7:30 a.m. –
8:15 a.m.

Continental Breakfast

SCE Room 613

8:15 a.m. –
10:00 a.m.

Panel
Discussion: Future Developments in the Natural Gas Indsutry

Hon.
Robert Clayton,
Chair Missouri Public Service Commission

Brad
Burton
Manager
of Federal Regulatory Affairs Questar Gas Company

Cynthia
Marple
Director,
Rates and Regulatory Affairs, AGA

Conrad Gruber, VP Strategic Planning, Atmos Energy Corportation

SCE Room 605

10:00 a.m. –
10:15 a.m.

Break

SCE Room 613

10:15 a.m. –
11:45 a.m.

Panel
(Con’t)

SCE Room 605

11:45 a.m. –
12:00 p.m.

Presentations of Certificates & Adjourn

SCE Room 605