Knowledge Is Power: Cost of Service & Rate Design

Join electric cooperative leaders for hands-on, real-world training led by Guernsey’s industry experts.

• Understand the rate design process
• Make your cost-of-service study work for you
• Explore innovative rate structures
• Improve communication with your members
• Network with your peers
• Take home a comprehensive reference workbook

Who Should Attend?

CEOs, GMs, CFOs, Member Services, and Financial Leaders

Our seminar schedule below is as of January 1, 2026. As we continue to finalize and refine our training materials, the order of the content may be rearranged to ensure the best possible learning experience for participants. We appreciate your flexibility and enthusiasm, and we’re excited to deliver a well-organized, engaging seminar that provides meaningful value for everyone involved.

Info: » What is the Cost of Service process?
» Understanding accounting principles in the Cost of Service
»How to establish the appropriate Revenue Requirement: How much margin is needed?
•Financial Ratios
•Cash General Funds
•Equity
•Capital Credit Retirements

Info: »How much margin will we have?
»Test Year versus Adjusted Test Year
»What is the Adjusted Test Year?
•What’s changing?
•Sales?
•Payroll and Benefits?
•Weather?
•Other?

Info: »Evaluate the Identified Revenue Requirement
• Does the margin cover expenses?
• Does the margin achieve financial goals and objectives?

Info: Opportunity to network with your fellow cooperative leaders in a relaxed setting to exchange insights, strengthen relationships, and spark collaborative solutions to shared industry challenges.

Info: » How are costs incurred?
• Distribution system costs versus power costs
• Fixed costs versus variable costs
• Number of customers
• Load requirements
• Energy requirements

Info: » How are Costs Allocated?
• Customers versus demand
• kWh
• Direct costs

Info: » Cost of Service summary
• How much does it cost to serve each rate class?
• How much does it cost to serve each consumer in a rate class?

Info: » Cost Based Rate Design
• Customer Component
• Power Supply Capacity and Delivery
• Distribution (wires) Capacity
• Distribution (wires) Customer
• Customer Accounting and Customer Services

Info: » Rate Trends
• Time of Use and Interruptible Rates
• Residential Three-Part Rates
• Electric Vehicle
» Adjustment Clauses for cost recovery
• Examples: Power Cost, Fuel Cost, Interest/TIER
• Pros and Cons

Info: » Special consideration of Contract Rates for Industrial Loads
» Using the Cost of Service to determine Line Extension Allowable Investment

Know what’s Happening Next — before everyone else does.

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Host or Publisher Guernsey