EnergyNewswatch

Utility Capital Budgeting and Planning

September 17-18, 2024 | Online

Click Here to register $1295

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for seven days after the event

“This training offered a clear and useful picture of utilities’ capital budgeting process that would make it beneficial to utility employees and regulators alike.” – Public Utilities Analyst Coordinator, Minnesota Department of Commerce

“This course is perfect for anyone involved in capital project analysis and business case development.” – Supervisor – T&D Financial Analysis & Planning, El Paso Electric

“A comprehensive course that included utilities fundamentals & regulatory process, corporate finance, business case development, and project management & controls. I enjoyed it.” – Senior Finance Project Manager, Southern California Edison

The EUCI Utility Capital Budgeting and Planning course will provide an in-depth explanation of the utility’s regulatory environment regarding revenue and capital projects. This training will focus on how capital fits into the big picture for different types of utilities, and how capital impacts utilities’ bottom line.

The course will cover a wide range of topics, including:

  • Project processes implementation
  • Business case development for capital projects
  • How to develop cost estimates
  • Cost of service, rate design and regulatory accounting will be covered briefly to provide context
  • Best practices and how to monitor implemented and in-progress capital projects

Attending this course will strengthen attendees’ ability to plan and budget for their projects and improve their approvals outcomes. Register today to master regulatory nuances, refine business cases, and elevate utility budgeting skills.

Learning Outcomes

Knowledge

  • Navigate utilities ratemaking process and discuss the downstream impact of capital investments
  • Review the utility business model, revenue requirement, rate of return, and rate base
  • Review the capital budgeting overall process along with its main considerations and applications
  • Identify the elements of cost of capital and learn methods to calculate it
  • Discuss the theory of capitalization versus expense and its implications

Skills & Competencies

  • Advance capital projects business case development capabilities and master main components and strategic considerations
  • Improve project cost estimating skills and learn key forecasting techniques
  • Review project risk analysis and how to incorporate it into project budgets and execution plans
  • Identify methods to monitor implemented and in progress capital projects
  • Enhance overall corporate finance knowledge, skills, and competencies

Agenda

TUESDAY, SEPTEMBER 17, 2024

9:00 a.m. – 4:00 p.m. Central Time

Short breaks will be taken throughout the sessions (30 minutes total)

Utility Ratemaking Process

  • Intro to Utilities
  • Utilities Stakeholders
  • Utilities Service Delivery
  • Utilities Regulations
  • Regulatory Proceedings

Utility Revenue Model

  • Utility Rates
  • Revenue Requirement
  • Operational & Maintenance Expenses
  • Rate Base
  • Capital Structure
  • Return on Rate Base
  • Under/Over Collection/Balancing Accounts
  • Regulatory Accounting (FERC Uniform System of Accounts)

Utility Capital Budgeting

  • Cost of Capital
  • Capital Budgeting Overview
  • Capital Budgeting Methods
  • Net Present Value
  • Internal Rate of Return
  • Payback Period
  • Present Value of Revenue Requirement (PVRR)
  • Considerations & Challenges
  • Capital Budgeting Process Overview
  • Evaluating Projects Risks
  • Capital Budgeting Best Practices

Capital Projects Business Case Development

  • Types of Capital Investments
  • Steps to Develop Solid Business Case
  • Business Case Example
  • Executive Summary
  • Project Overview
  • Project Analysis
  • Strategic Analysis
  • Implementation Strategy
  • Alternative Investment Analysis
  • Risk Analysis
  • Financial Analysis
  • Project Impact on Revenue Requirement

WEDNESDAY, SEPTEMBER 18, 2024

9:00 a.m. – 12:00 p.m. Central Time

Short breaks will be taken throughout the sessions (15 minutes total)

Developing Cost Estimates for Capital Projects

  • Overview
  • Cost Estimates Classifications
  • Cost Estimated Techniques
  • Criteria for Excellent Cost Estimates
  • Causes of Inaccurate Project Cost Estimates
  • Projecting Costs of Capital Project

Monitoring & Control for Capital Projects

  • Objectives & Techniques
  • Monitoring & Control Processes

Instructor

Hatem Kateb, Senior Finance Project Manager, Southern California Edison (SCE)

Hatem Kateb is a finance professional with 16 years of experience in corporate finance and business operations. He currently provides financial leadership to a $2B portfolio of capital investments and operational activities at Southern California Edison; one of the world’s largest investor-owned utilities. Prior to SCE, he held several finance leadership roles at leading organizations including Vodafone, Johnson & Johnson, and Port Logistics. Hatem’s academic credentials include an MBA from Pepperdine University, Operations Management Certification from the Wharton School of Business, and a BS in Accounting & Finance from Cairo University.