Utility Accounting Education Update
Insights to maximize the opportunities in the Power and Utilities industry
utilityeducation.com
May, 2023
This month’s issue: Plan B for rate increases, impairment accounting recovery in rates, and focusing on your goals!
The excitement never stops in the accounting world, so read on if these are of interest and/or forward to a friend! If not, submit some topics you’d like to see in this newsletter.
What do you do when your Board says “No!” to a needed rate increase?
Time to implement the back-up plan
If your electric utility board will not increase rates timely, then what areas of the budget can be adjusted without impacting reliability? A rate increase voted down opens the door for "Plan B", the fallback plan. But, what is the fallback plan? This article discusses some Plan B approaches to save your utility’s budget and maintain reliable service.
5 ways to ease collecting impairments in electric rates
Impairments are a way of life in the electric business. Customers may not understand why they need to pay for assets that are no longer used and useful in providing them with service. Her are ways to collect for those assets.
The UAES article library covers introductory and advanced co-op, FERC, and utility accounting, developing electric rates, and financial management. We include practical examples you can use now in your electric cooperative or utility!
Managing electric rate strategy is a balancing act
A common refrain from customers is that electric bills are "too high"; just cut electricity costs!
With electricity costs increasing 15% annually in 2022 and 2023 and recent proposed EPA regulations designed to phase out fossil fuel electric resources, the trend in electricity prices will continue to have upward pressures.
How easy is it to provide reliable electric service and stem the tide of increasing rates? Turns out, it's not easy at all.
New to the Power and Utilities business? Here’s a FREE course for new accounting and finance team members!
Introduction to the Electricity Business 2.0!
The more you know about the electric business, the better value you bring to your organization and to your career!
This FREE course will give you a high-level overview of how an electric utility and cooperative gets electricity to its customers, how it operates, the level of oversite governance, and the finances that make for a healthy business. You will be able to immediately use this information in your day to day work and "speak electric" with your peers! Be an expert in 30 minutes!
Thank you for your support and interest in best practices in accounting, developing electric rates, and financial management. The Power and Utilities Industry is the foundation for a vibrant economy and an integral part of our society!
Just for reading this far down the newsletter you’ll get 20% off a 12 month All-Access UAES membership! Just use the code Newmember20 at checkout!
Here’s some thoughts to help you zero in on your goals:
“The question isn’t who’s going to let me; it’s who is going to stop me.”
“Setting goals is the first step in turning the invisible into the visible.”
“You don’t learn to walk by following the rules. You learn by doing, and falling over.”