Re: EEI Electric Rate Advanced Course: july 28-31, Madison, WI 10f10 Subject: Re: EEI Electric Rate Advanced Course: July 28-31, Madison, WI From: Cara Lee Mahany Braithwait Date: 1/3/2013 11:30 AM To: "Bielski, Casimir" The discussion with Enrique is back on track, he is recruiting the right guy for us. I have also spoken with Enrique. So, if all works as it should, we will do well by this move. On Thu, Jan 3, 2013 at 8:19 AM, Bielski, Casimir wrote: Hey Steve, Distribution 2020 is a project that started at EEI, basically in response to several trends, such as: 1) weak growth in load and sales, 2) increasing penetration of alternative forms of generation, like solar panels, wind, etc., and other new technologies like improved batteries. EEI has created a CEO task force on this and internal teams are working on such projects as de?ning the threats and opportunities and writing papers on possible industry responses, such as ?xing net metering. While it took me a day to get back to you on this, I am pulling this from my head and from my involvement with the issue within EEI, without providing a lot of depth of detail. To a certain extent, the detail tends to get in the way of what the issues really are. So if you have any further questions on this, please let me know.??Cass From: Steve Braithwait Sent: Wednesday, January 02, 2013 4:20 PM To: Bielski, Casimir Cc: Cara Lee Mahany Braithwait; Cara Lee Mahany Braithwait Subject: RE: EEI Electric Rate Advanced Course: July 28-31, Madison, WI Cass: Regarding my two sessions, 1 would find it more natural to switch the order so that "Ef?cient Rates" comes first. 1 would also have some more detailed suggestions on the topics listed. When do you need those? Also, can you provide some background on Is that an EEI initiative? I don?t have strong opinions on Eric's comments. Sounds like you have a good feel for the committee's desires. From: Bielski, Casimir Sent: Wednesday, January 02, 2013 3:01 PM To: Ackerman, Eric; Steve Braithwait; Larry Blank; Cara Lee Mahany Braithwait; Hanser, Phil; Caldwell, John; ivoqt@southernco.com Subject: RE: EEI Electric Rate Advanced Course: July 28-31, Madison, WI 3/20/2015 11:00 AM Re: 1313] Electric Rate Advanced Course: July 28-31, Madison, WI I will try to address what I can here. have numbered the issues below for a more ef?cient response. Although I am addressing Eric?s comments primarily here, this affects a large part of the curriculum and many of your presentations, so I would be interested in any feedback any of you have on any of this: 1. If Mark is game to include more 02020 concerns, that sounds ?ne to me. By the way, I thought you (Eric) were going to add more D2020 concerns to your presentation. 2. My understanding from the committee is that they want these folks to know something about cost of capital, stopping short of digging deep enough to testify on it. To the extent Bente wants to address the issues you raise that she is not already addressing, that sounds fine to me as well. 3. This was added to address a concern raised by students in the evaluation that there was not enough discussion among the students about issues they were facing in their day-to-day work. I think Cara Lee would be a good candidate to lead this. I would be happy to do it, if no one else wants to. This is about the students, so really anyone to get them talking. 4. Thanks for reminding me on this. We need someone to replace Dick. He has made some recommendations, but i would be interested in any recommendations from this group as well. lfyou have any ideas, please let me know. Otherwise I will try to enlist someone from the list Dick has recommended. 5. This is supposed to be essentially a discussion related to the previous session and led by the person who takes Dick's place. 6. lam not sure I understand your question here. The session you point to is part of Mark Lowry?s presentation to lay out the assignment, guide the students in crafting their proposals, etc. 7. This is your (Eric?s) session designed by you. If you don?t know how it relates to our strategy, then I guess we should rethink it. We can ask Mark if this is something he can cover, if you want to do that and he is game. Just let me know. -?Cass From: Ackerman, Eric Sent: Wednesday, January 02, 2013 3:22 PM To: Bielski, Casimir; Steve Braithwait; Larry Blank; Cara Lee Mahany Braithwait; Hanser, Phil; Caldwell, John; livogt@southernco.com Subject: RE: Electric Rate Advanced Course: July 28-31, Madison, WI Happy new year all! 2 of10 3/20/2015 Re: EEI Electric Rate Advanced Course: ]uly 28-31, Madison, WI 30f10 Let me apologize in advance, if I?m talking a deeper dive on this than you intended Cass; but I continue to have concerns about the overall logic of the curriculum. I offer the following comments with no particular axe to grind other than wanting to produce as good a course as possible. Comments welcome. 1. Re. Mark?s Description of Team Projects (Monday 8:15 - 9:30), I think we will want to update the scenarios to begin to reflect that kinds of concerns we are talking about in the context of the Distribution 2020 Program preserving reliability in the face of new disruptive technologies). 2. Re. Bente?s Current Issues in Cost of Capital (Monday 11:00 12:30), how is this relevant to the strategy we are asking the students to develop? Cost of equity certainly a key part of the rate case, but it has seemed increasingly disconnected from the rest of the curriculum. To integrate this module better, we might want to talk more about capital needs in the industry, what is happening to utility risk given concerns about the "green energy divide?), and what impact decoupling and other altreg policies may have on risk and cost of equity. (Forgive me, Bente, if we?re already covering these topics and I?m not remembering.) 3. Re., Discussion of Current Challenges Facing Your Company (Monday 1:30 2:00), who is going to lead this, and how does it ?t into the curriculum? Will it frame issues which Phil and Larry provide tools to address? 4. Re. Using Customer Information to Develop Better Regulatory Pricing Strategies (Tuesday, 8:55 9:50), with Dick retiring from rate school, who is going to do this? 5. Re. Class Discussion of Customer-Focused Strategies (Tuesday 10:00 10:15), why is this here and not at the beginning of Tuesday? Wouldn?t this 3/20/2015 Re: Electric Rate Advanced Course: July 28-31, Madison, WI 4of10 be a good way to frame all of Tuesday?s presentations? 6. Re. Configuring Proposals (Tuesday 3:15 5:00), does this imply that the modules on Wednesday are redundant? If not, how do the rate discussions on Wednesday relate to the requirements for a successful regulatory strategy? If we dropped Dick?s module (Using Customer Info to Develop Better Regulatory Pricing Strategies), would it make sense for Steve to integrate Energy Pricing Solutions and Designing E??icient Rates on Tuesday? 7. Re. Rate Design For Distributed Energy, (Wednesday 9:00 10:00), how does this relate to our strategy requirements? Although these are aspects of rate design, could Mark address them as part of his altreg discussion? Again, I?m not trying to rock the boat, just tighten things up a bit. (Let?s give the ball to Alfred Morris.) Eric Ackerman Director, Alternative Regulation Edison Electric Institute 701 Ave, NW. Washington, DC. 20004?2696 (voice) 202 508 5528 (fax) 202 508 5038 eackerman@eei.org 3/20/2015 11:20 AM Re: EEI Electric Rate Advanced Course: July 28-31, Madison, WI Edison Electric Institute Am 0' t7 Ass/stim- . ASK CONGRESS 10 SIUP DEFEND A DIVIDENDTAX From: Bielski, Casimir Sent: Wednesday, January 02, 2013 10:42 AM To: Steve Braithwait; Ackerman, Eric; Bielski, Casimir; Larry Blank; Cara Lee Mahany Braithwait; Hanser, Phil; Caldwell, John; Subject: EEI Electric Rate Advanced Course: July 28-31, Madison, WI Happy New Year, folks! Below is a draft email for advertising the Advanced Rate Course in late July and attached is a draft curriculum. I would be interested in any corrections, concerns, etc., that you might have on this or anything else related to the course. I would like to send this out soon, so while the below and attached do not have to be perfect, now would be a good time to get this as focused as possible. Please let me know, when you next have a chance.--Cass 5 M10 3/20/2015 11:20 AM Re: Electric Rate Advanced Course: July 28-31, Madison, WI 60f10 Re: l~1l<2l Electric Rate Advanced Course: July 28?31, Madison, WI 7 0f10 Re: EEI Electric Rate Advanced Course: luly 28-31, Madison, WI 8 '10 3/20/2015 Re: Eiil [Electric Rate Advanced Course: July 28-31, Madison, WI Cara Lee Mahany Braithwait Director, Wisconsin Public Utility Institute 90f 10 Re: EEI Electric Rate Advanced Course: Ju1y 28-31, Madison, WI 608-890?1815 10 0f10 3/20/2015 11:20 AM Re: FW: EEI Rates School--Make your hotel reservation BEFORE Subject: Re: FW: EEI Rates Schoo ??Make your hotel reservation BEFORE this Friday and From: Cara Lee Mahany Braithwait Date: 6/25/2013 11:39 AM To: "Bielski, Casimir" CC: "DouglasJ Ziemnick Doug, welcome to the program--let me know if you need me to call and hold a room reservation for you at the Fluno Center--just give me dates. On Tue, Jun 25, 2013 at 8:56 AM, Bielski, Casimir wrote: FYI, Doug. Cara Lee From: Cara Lee Mahany Braithwait [mailtozsamb@wpui.org] Sent: Monday, June 24, 2013 5:39 PM To: Ackerman, Eric; Larry Blank; Steve Braithwait; Caldwell, John; Philip Hanser; Mark Lowry; Villadsen, Bente; Vogt, Larry GBoIlom@mge.com; Bielski, Casimir Subject: EEI Rates School-Make your hotel reservation BEFORE this Friday and Cas, Bente and Larry, I see you are already For planning purposes of printing, I would like your materials by July 22, the Monday preceding the course. Improving our Course: Every year the evaluations are the same on one point: The material needs to flow and without repetition. Lets review each other?s relevant slide sets or, at a minimum, an outline of topics that you plan to cover. Thus it would be most instructive if you all could exchange sets of materials in advance of my printing them?~this will help you in a couple of ways: 1. You can see if you don't need to cover an area, or, if indeed you do need to introduce an idea, principle etc. 2. You can fully use your time to cover NEW material and not allow participants to 1 of2 3/20/2015 10:40 AM Re: FW: EEI Rates School-Make your hotel reservation BEFORE 20f2 space out as they already heard this message 3. Please avoid over commercialization-~50, what do I mean by this? Please limit reference to your company 4. Add, if you can, a small footer to your slides: EEI Advanced Rates School, July 2013 (this can be in 8 point Arial narrow) Your fellow speakers emails are on this email Send you PowerPoint presentation to me, I will get it printed, two per page, back to pack. I will also it and send it to all the speakers as I can. Every year the evaluations are the same on one point: The material needs to flow and without repetition. Lets review each other's relevant slide sets or, at a minimum, an outline of topics that you plan to cover. Fluno Center Telephone number is: 877-773-5866 Attendance is looking good (around 25) A summary of attendees will come out next week. Cara Lee Mahany Braithwait Director, Wisconsin Public Utility Institute 608-890-1815 Cara Lee Mahany Braithwa'it Director, Wisconsin Public Utility Institute 608-890-1815 3/20/2015 Fwd: EEI Rates C0111?se--Wclcometo Madison 10f11 Subject: Fwd: EEI Rates Course-Welcome to Madison From: Cara Lee Mahany Braithwait Date: 7/23/2013 11:02 AM To: "Bielski, Casimir" FYI-~next time I will remember to put your name on this letter too! -- Forwarded message From: Lackey, Lee A Date: Tue, Jul 23, 2013 at 10:43 AM Subject: RE: EEI Rates Course-Welcome to Madison To: Cara Lee Mahany Braithwait Sam, Thank you so much. Really appreciate it! Lee Ann Lackey Xcel Energy Responsible By Nature Accounting and Financial Consultant 1800 Larimer Street. Suite 1200, Denver, CO 80202 P: 303.294.2351F: 303.294.2304 E: Lee.A.Brown@xcelenerqv.com XCELENERGY.COM Please consider the environment before printing this email. "This email is covered by the Electronic Communications Privacy Act, 18 USC Sections 2510-2521. This email, and any attachments, may contain con?dential. private andlor privileged material for the sole use of the intended recipientts). Any review. use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender by reply mail and delete all copies of this message and any attachments." From: Cara Lee Mahany Braithwait [mailtozsamb@wpui.org Sent: Tuesday, July 23, 2013 9:19 AM To: Lackey, Lee A Subject: EEI Rates Course-Welcome to Madison 3/20/2015 10:41 AM Fwd: EEI Rates Course-Welcome to Madison 20f11 Edison Electric Institute PomtyAssoc-btiar To: Lee Lackey, Xcel Energy Inc. From: Cara Lee Mahany Braithwait on behalf of the EEI Rates Team RE: Survey Request and Useful Information: EEI Pre-Event Survey Weather link Welcome to the EEI Rates School. The following is some information about the EEI Electric Rates Advanced Course scheduled for Sunday July 28 through Wednesday July 31 at 2:00 pm, 2013 in Madison. Our room number for the entire event will be room 221. Please take 5 minutes to answer this survey?your answers will be used to help guide our trainers? level of detail?please go to this link: EEI Pre-Event Survey In this e-mail: Logistics Continuing Education Credits Workshog on Regulatogy Strategy Complete Agenda Program location: The Fluno Center for Executive Education, 601 University Avenue, Madison, WI. Located just 20 minutes from the Dane County Regional Airport, the Fluno Center is on the UW-Madison campus in the heart of the city. Room Location: We will be on the second ?oor training sessions rooms Accommodations: Fluno Center for Executive Education offers overnight accommodations in its 100 executive guest rooms, 3/20/2015 10:41 AM Fwd: EEI Rates Course--Weicome to Madison 30f11 providing program participants with convenient, state-of?the-art accommodations. For more information call toll-free 1-877-77-FLUNO or go online at Rooms are still available. I Parking If Needed: Located below the Fluno Center is a 290 stall parking garage available to the public and managed by the University of Wisconsin-Madison. The entrance is off Frances Street (UW Lot 83). However, cars are not really needed as the hotel is centrally located, with every convenience and type of food you might need during your stay. Map: Maps of the capitol square and campus area are available online at Travel Information Dress: Dress at the program is summer business casual, and bring shorts for free time?it is July, it is warm, it is the best month of the year here. Schedule: The pre-course workshop starts on Sunday, July 22, 3:00 pm in the Fluno Center. A Welcome reception will follow from 6:00-8:00 pm. in the Study Pub on the 8th ?oor of the Fluno Center The program starts Monday, July 29 at 7:45 am. in room 221. It will end on Wednesday, July 31 at 2:00 pm. Links: We have provided some articles that you may find useful to review prior to attending this course: EEI Advanced Rate Readings If you have any questions, please call me at 608(890-1815 or email me at sameengrmiscedu. We look forward to seeing you. Continuing Education Credits Workshop on Regulatory Rate Strategy In this year?s Advanced Rate School, you will be asked to participate in a team project to outline a regulatory strategy to address a particular set of circumstances. You will be assigned to a team, depending on whether you work for a vertically integrated utility; or an unbundled (restructured) utility. Your team will be tasked to develop a regulatory strategy that responds to a set of issues and strategic drivers that we will send out prior to the event. The strategy outline is for delivery to management within the hypothetical utility. 3/20/2015 10:41 AM Fwd: EEI Rates Course--Welcome to Madison 4of11 The curriculum has been designed to provide you information that you will need to address speci?c issues in your scenarios. If the task seems daunting welcome to rate regulation in today's investor-owned electric utility industry! We recognize that we?re asking you to do something in two and one-half days, which in actual practice takes a year or more to complete. Our intent is to give you a sense of the complexity of the issues that must be balanced in today?s rate cases, while providing a vehicle you can use to integrate what you will he hearing about into a coherent package. There are no right answers; and obviously, the level of detail we can get into is limited by the time available. Past attendees give this exercise thumbs up for integrating concepts and techniques into a business environment. Complete Program Agenda Edison Electric institute Whisqu . . . wees-mm DEpARmmr CF B-laltEErdi-? EEI Electric Rates Advanced Course University of Wisconsin Madison, WI Rates to Meet New Market Opportunities and Constraints Fluno Center, Room 221 Curriculum SUNDAY JULY 28 3:00 - 6:00 pm. Two 10-minute breaks Overview of Electric Ratemaking Basics Larry Blank - Center for Public Utilities, New Mexico State University - Foundations for Electric Utility Regulation Regulatory Commissions: Basics on Organization and Process Overview of the General Steps in Electric Ratemaking Units of Measurement used in Ratemaking Basic Rate Design 0 Energy charge vs. Fixed Customer charge 0 Energy charge vs. Demand charge 0 Block rate design 3/20/2015 10:41 AM Fwd: EEI Rates C0urse--Welcome to Madison 0 Time-of-use rate design 6?00 8:00 Welcome Reception Fluno Center Study Pub 8th Floor MONDAY JULY 29 8:00 8:15 am. Welcome and Course introduction Cass Bielskl and Cam Lee {Sam} Mahany Bralthwolt 8:15 9:30 Description of Team Proiects?Assign Groups - Initial Problem Mark Lowry Paci?c Economics Group Research Developing Regulatory Strategies to Meet Today?s Issues 9:30 11:00 Regulatory Accounting 10~minute John Caldwell Edison Electric institute Review of Regulatory Accounting stretch break Fundamentals 0 Regulatory Accounting vs. ?Regular? Accounting 0 Revenue Requirements 0 The Income Statement and Balance Sheet 0 The Rate Base and its Components 0 Rate of Return and Capital Structure Ratemaking Adjustments and Normalization Operating Expenses vs. Capital Expenditures MONDAY continued 9:30 11:00 Regulatory Accounting continued John Caldwell Edison Electric Institute Tax Treatment CWIP vs. AFUDC Accounting for Plant Retirement Accounting Standards 11:00 am 12:30 pm Current Issues in Cost of Capital 5 of 11 3/20/2015 10:41 AM Fwd: EEI Rates Course??Welcome to Madison Bente Villodsen The Brattle Group Cost of capital and revenue requirement How markets affect cost of capital Traditional COE Methods and Their Use Across Jurisdictions Sources of Risk, Old and New [El Earned Returns vs. Allowed Returns El Rate Design and the Effect on the Cost-of?Capital Recent rate case issues 12:30 1:30 pm Lunch 1:30 2:00 Discussion of Current Challenges Facing Your Company 2:00 2:45 lssues in Cost Allocation Philip Honser The Brattle Group Cost of Service Types of Costs Functionalization Classi?cation Rate Class Cost Allocation Cost Allocation and Revenue Requirement 2:45 3:30 introduction to Marginal Costs Philip Honser The Brattle Group Traditional Markets and Restructured Markets Steps in Developing Marginal Costs 0 Annualization Marginal Demand Costs Generation, Transmission, Distribution 0 Marginal Energy Costs 0 Costing Periods and Attributing Costs to Costing Periods Adjusting Marginal Costs for Losses 60f11 3/20/2015 10:41 AM Fwd: EEI Rates Course-Welcome to Madison 3:30?3:40 MONDAY continued 3:40?5:10 5:10?6:10 TUESDAY JULY 30 7:45 8:45 am 8:45 ?8:55 7of11 Other Uses for Marginal Costs 0 Smart Grid 0 Distribution Utility of the Future Break Minimum Distribution System Concepts and Appiications tarry Vogt Mississippi Power What constitutes a minimum distribution system (MDS) Different approaches to determining minimum distribution system costs MDS analysis of fine transformers MDS analysis of primary and secondary conductors MDS analysis of distribution poles MDS analysis of other line equipment Illustrative results of a minimum distribution system study Reception all in the Study Pub (You will be on your own for dinner to enjoy one of Madison?s many restaurants) Rate Design by Objective Phi! Honser increasing Block Rates and Dynamic Rates Setting Objectives Measuring How Well Objectives Are Met Examples Break 3/20/2015 Fwd: EEI Rates Course-Welcome to Madison 8:55 9:50 Understanding Your Customers: Key to New Rate Offerings Doug Ziemnick, DTE Energy Customer Usage Trends Customers? Potential/Willingness to Change Usage Differences in Customers? Energy Service/Price Expectations 8t Values Why Utilities Wiil Be Expected Required to Change Strategies to Be More Customer and Energy Efficiency Focused 0 Applying Customer information to Improve Regulatory Pricing Strategies 9:50 10:00 Break 10:00 10:15 Class Discussion of Customer-Focused Strategies 10:15 11:15 Designing Ef?cient Rates Steve Broithwoit Christensen Associates Energy Consulting Features of Traditional and Ef?cient Rates Dynamic Pricing Design and Issues Findings from Dynamic Pricing Evaluations: How do Customers Respond? TUESDAY continued 11:15 11:30 Discussion 11:30 am 12:30 pm Lunch 12:30 2:00 Alternative Regulation Mark Lowry? Paci?c Economics Group Research MultiuYear Rate Plans (Rate and Revenue Caps) Forward Test Years Formula Rates 2:00 2:15 Break 2:15 3:15 Alternative Regulation continued Bofll 3/20/2015 Fwd: EEI Rates Course-Welcome to Madison Mark towry? Pacific Economics Group Research Revenue Decoupling Capital Cost Trackers Applications to Vertically Integrated Utilities and "Wirecos" 3:15?5:00 Con?guring Team Proposals Alternative Regulation Scenario Work Groups Design Regulatory Strategies that Respond to Scenarios Re?ecting Today?s Business Challenges 0 Reduced Volume Growth 0 Mounting Investment Needs Separate Scenarios for Traditional Vertically Integrated Utilities and "Wirecos" 5:00 6:00 Team Receptions Each team can enjoy refreshments in their "study rooms? while continuing to outline their response to the case study. Speci?c tasks will be laid out for each team for this ?rst meeting. 5300 7:00 General Reception Fiuno Center Study Pub 8th Floor (Cash Bar) You will be on your own for dinner to enjoy one of Madison?s many restaurants) WEDNESDAY JULY 31 7:45 8:45 am Energy Pricing Solutions Steve Braithwait Christensen Associates Energy Consulting Pricing Strategies Managing Price Risk with Dynamic Pricing Hedged Rate Options 0 Sharing Risk with Customers Barriers (Smart Meters, Customer and Regulator Resistance) Missed Opportunities Educating Customer WEDNESDAY continued 90f11 3/20/2015 Fwd: EEI Rates Course-Welcome to Madison 9:00 10:00 10:00 10:15 10:15 11:15 11:15 12:30 pm 12:30 2:00 Cara Lee Mahany Braithwait Rate Design for Distributed Energy EricAckermnn, Edison Electric Institute Fixed/Variable Rate Design Business/Incentive Models Issues Associated with Renewable Resources Feed in Tariffs Net Metering DG Interconnection Procedures Debt Imputation Dealing with Changes in Revenue Streams DSM Cost Trackers Decoupling Mechanisms Break Case Study: Realigning Rates with Costs Greg Boliom, Madison Gas and Electric Working Lunch Work Group Presentations and Debrief Mark towry? PEG Research (Session Coordinator) Director, Wisconsin Public Utility Institute 608-890-1815 10 of11 3/20/2015 10:41 AM Fwd: EEI Rates Course--Welcome to Madison Attachments: image012.png 7.2 KB 11 CHI 3/20/2015 10:41 AM