Wisconsin Public Utility Institute

Fundamental Course: Energy Utility Basics

October 15-19, 2007

Draft Agenda

October 15, Monday

Electricity: Technology and Industry Foundations

FlunoCenter Auditorium

Time / Session Title / Topics / Speaker
7:30 – 8:30 / Continental Breakfast
7:30 – 8:00 / Registration
8:00 – 8:20 / Introduction / Introduction to Institute
Purpose of Course
Logistics
Attendee Introductions
Review of Agenda / Sam Mahany Braithwait
Wisconsin Public Utility Institute
8:20 – 9:45 / How the Electric System and Markets Work / Three Stages of Supply: G, T, D
Focus on Generation Technology: Nuclear, Fossil, Renewable, Distributed
Markets: What are the roles and who manages:
  • wholesale markets,
  • retail markets,
  • capacity markets,
  • energy markets, and
  • Ancillary service markets.
/ Ken Copp
American Transmission Company LLC
9:45 – 10:00 / Break
10:00 – 11:30 / How the Electric System Works
(continued) / Focus on Transmission: Structure of the US Grid, Reliability, Role of ISO/RTO, Reliability and Infrastructure Development / Ken Copp
American Transmission Company LLC
11:30 – 12:30 / Lunch (60 minutes)
12:30 – 1:30 / Who’s regulated, why and how: the Federal and State Perspective / A Brief History of Regulation – Legal foundations including the regulatory compact, market failure, and the essential nature of service; jurisdictional coverage; and driving philosophies / Theresa Hottenroth
Alliant
1:30 – 2:00 / Break
2:00 – 3:30 / Utility Company Models-Panel Discussion /
  • Investor Owned Utility,
  • Municipal Utility,
  • Joint Action Agency,
  • Cooperative Utility
  • Stand Alone Transmission Companies
How they’re set up and discuss different perspectives on the industry / Roman Draba
We Energies
John Schulze
ATC
Kenric Scheevel
Dairyland Power Coop.
Tom Paque
WPPI
3:30 – 3:45 / Break
3:45-5:15 /
Hands-on Computer Exercise:
/ Model simulation and refreshments
Hands-on simulation to improve conceptual understanding ofthe energy industry’s complex system and specifically to observe the long term criteria for expansion planning and tradeoffs between cost, environment, safety and reliability. / Paul Meier
Energy Institute
5:15 / Adjourn

October 16, Tuesday

Electricity: Regulation, Jurisdictional Issues and How to Make Money

FlunoCenter Auditorium

Time / Session Title / Topics / Speaker
7:00 – 8:00 / Continental Breakfast
8:00 – 9:15 / How and Why to Build a Power Supply Portfolio /
  • The Foundation: Managing Value & Risk
  • Regulatory and Business Considerations
  • Balancing Physical and Contractual Assets
  • Asset Management is Essential
  • Global Issues
/ Glen Justis
Deloitte
9:15-9:30 / Break
9:30 – 10:15 / Regional Transmission:
Operations What and Why /
  • What and why
  • Separate but organized planning and coordination—how does this really work?
  • Dedication to rebuilding critical infrastructure
  • Ensuring reliability
/ Bernie Lesieutre
UW Madison
10:15 – 10:30 / Break
10:30 – 11:30 / Regional Transmission:
Physical Flow /
  • Understanding power flow
  • What is a bus and why do you care
  • What is the difference between a contract path and a physical path
  • What is Locational Marginal Pricing
/ Bernie Lesieutre
UW Madison
11:30 – 12:30 / Lunch
12:30 – 1:30 / Regional Transmission:
Quirky, Costly Issues /
  • Wholesale Risk Factors and Risk Management
  • - Review of Risk Factors in Wholesale Markets
  • - Review of Risk Management Options
  • - Introduction to Financial Transmission Rights
  • - Transmission Loading Relief Calls
  • - Primer on Energy Derivatives
/ Mat Morey
CA Energy Consulting
1:30 – 2:00 / Break
2:00- 3:00 /
Regional Transmission: Market Performance—Can it be measured?
/ What is a spot markets and can it meet short-term and long-term supply and financial objectives / Paul McCurley
NRECA
3:00 – 3:15 / Break
3:15– 4:30 / Utility Finance Issues: The utility’s view—how do utilities make money / Balancing the needs of customers and investors
Rate of return versus rates / Allen Williams, Jr.Foley & Lardner
4:30 – 5:15 / Panel Discussion / Regional Transmission– Panel Discussion / Bernie Lesieutre
UW MadisonAllen Williams, Jr. Foley & Lardner
Paul McCurley
NRECA
Mat Morey
CA Energy Consulting
Glen Justis
Deloitte
Bill Malcolm
MISO

October 17, Wednesday

Electricity: The Customer Side of the Meter and Rate Making

FlunoCenter Auditorium

Time / Session Title / Topics / Speaker
7:00 – 8:00 / Continental Breakfast
8:00 – 9:15 / Rate setting and Efficient Pricing / Revenue requirements
  • Operating expenses
  • Rate base
  • Capital structure The backbone of efficient pricing
  • Revenue issues
  • Revenue Decoupling and other strategies to address changes regarding revenues and energy sales
  • Cost of service
/ Mike O’Sheasy
CA Energy Consulting
8:15 – 9:30 / Break
9:30 – 10:30 / Decoupling—Is this keeping the Utility whole? / Just what is decoupling
Why is it a possible rate strategy for dealing with loss loads or revenues
What are the different strategies currently in use—pros and cons / Dan Hansen
CA Energy Consulting
10:30-10:45 / Break
10:45-11:30 / Pricing-Meeting Customer, Utility, Regulatory and Stakeholder Needs / Just What Are These Programs and do they Deliver?
A review of a number of different pricing programs and their performance
  • TOU
  • Fixed Bill
  • Flat Billing
/ Jon Kubler
Georgia Power
11:30-12:30 / Lunch
12:30-1:30 / Pricing continues /
  • Critical Peak Pricing
  • POLR
  • Fixed Bill as a Conservation Program
/ Jon Kubler
Georgia Power
1:30-2:00 / Break
2:00 -3:00 / Building the Energy Efficiency Plant / Current initiatives
Energy efficiency as a viable, cost-effective resource / Dan York
ACEEE
3:00-3:15 / Break
3:15-4:15 / Environmental Issues / Implications to electric generation.
Concerns about CO2 emissions are driving the debates about fossil fuels, renewable energy, energy efficiency and renewed interest in nuclear energy.
This session offers an overview of compliance and what it means to a utility company. / Kris Krause
WE Energies
4:15 – 5:15 / Panel Discussion / The role of rates in meeting utility, customer and society objectives / Mike O’Sheasy
CA Energy Consulting
Dan Hansen
CA Energy Consulting
Jon Kubler
Georgia Power
Dan York
ACEEE
Kris Krause
WE Energies
5:15 / Adjourn

October 18, Thursday

Electricity/Gas: Customer Perspectives and Gas Market Design

Fluno Center Room 219

Time / Session Title / Topics / Speaker
7:00- 8:00 / Continental Breakfast
7:30-8:00 / Registration for Natural Gas Attendees
8:00 – 9:00 / Customer Expectations / Customer perspectives on what customers expect their energy providers to deliver and at what price / Charlie Higley
CUB
9:00 – 9:15 / Break
9:15 – 10:00 / Risk / Managing short and long term risks
Where is risk coming from / Glen Justis
Deloitte
10:00 – 10:15 / Break
10:15 -11:30 / How the Natural Gas System Works / Industry Structure
Industry Players
Stages of Supply (Wellhead to Burner Tip): Gathering, Processing, Transport, Storage
Product flows and Market Hubs
Relationship between Producers, Pipelines, LDCs
Long and short-term supply/demand picture-domestic and imports
Energy security issues / Scott Olsen
MG&E
11:30 – 12:30 / Lunch
12:30- 1:30 / Basics of Natural Gas Regulation / Summary of Current Regulation
Basis of Current Regulation: FERC Rulemakings / Ken Yagelski
Washington Gas
1:30 – 2:00 / Break
2:00 – 3:00 / Contracting for Gas / Contracting for gas
Demand forecasts,
Fixed vs. market contracts,
Managing market risk / Ken Yagelski
Washington Gas
3:00 – 3:15 / Break
3:15 – 5:00 / The Ratemaking Process / Characteristics of gas rates
Filing a rate case
Revenue requirements
Rate base / Ken Yagelski
Washington Gas

October 19, Friday

Gas: Market Design, Rates and Future

Fluno Center Room 219

Time / Session Title / Topics / Speaker
7:00 – 8:00 / Continental Breakfast
8:00 – 9:15 / The Ratemaking Process / Rate of return
Capital structure
Cost of service / H. Edwin Overcast
R. J. Rudden, A Black and Veatch Company
9:15 – 9:30 / Break
9:30 – 10:30 / Natural Gas Markets—The rising cost of infrastructure /
  • Natural Gas Markets
  • International Market Issues
  • Pricing, supplies (including LNG)
  • Critical infrastructure protection and how it relates to pricing
/ Thomas Pearce
Public Utilities Commission of Ohio
10:30 – 10:45 / Break
10:45 – 11:45 / Energy Security Issues / Natural gas for electric generation
Access to known reserves
Domestic economic security
What the future holds for gas markets and regulation / Alan Carroll (invited)
UW Petro Geologist
11:45 / Wrap up / Sam Mahany Braithwait