How a Utility Makes Money


This one-day, instructor-led course covers basic utility finance and rate-making.  Participants learn the basic concepts of finance and rate-of-return regulation, and how to use them to explain their company’s corporate strategy and the specific challenges it faces.


All employees at a regulated utility will benefit from taking this course.  To achieve the most from the course, participants would ideally have either 10 years of energy industry experience or a four-year college degree and at least 3 years of energy industry experience.


This course covers the following:

  • The three major financial statements
    • Income statement
    • Balance Sheet
    • Cash Flow Statement
  • Return on Equity (ROE) and its components
    • Net Income Percent
    • Asset Turnover
    • Financial Leverage
  • Capital Investment Analysis
    • Capital Analysis Process
    • Present Value (PV)
    • Net Present Value (NPV)
  • Rate-of-Return Rate-Making
    • Rate Base
    • Return on Rate Base
    • Revenue Requirement
    • Optional : Modifications to Rate-of-Return Rate-Making Specific to Your Service area


The content of this course, as well as the examples and exercises, can be customized to meet your specific training needs.  

Course Description and Outline

Email us at or call 888-808-4794 to discuss this course in greater detail and determine if it will add value to your leadership development curriculum.

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