Utility Accounting Education Update
Here are insights to help keep you current in the Power and Utilities industry!
utilityeducation.com
July, 2022
Higher interest rates and inflation make for a challenging management environment. This month’s issue discusses some tools to consider as you navigate your way.
Strategies for Operating Your Co-op or Utility in a Higher Interest Rate and High Inflation Environment
High inflation and higher interest rates may be an environment that is a new experience for some of us. This has happened before and there are strategies that can be considered as management navigates its strategy. Read on for more insights.
5 Ways to Match Expenses to Revenues Using ASC 980 and GASB 62
You may be seeking ways to hold off on increases in rates to your customers. Accounting standards ASC 980 and GASB 62 are your friend when it comes to deferring costs that will be collected in later increases from customers OR to save for a rainy day with rate stabilization revenues that you can use later to protect your income statement results. Using this accounting tool is one of the most effective ways to accomplish these financial goals. You need to know this.
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!
5 Ways to Improve Your Utility’s Bond Rating
With inflation increasing costs and higher interest rates squeezing cash flows, one area you can manage is your organization's bond rating. A high bond rating is key to maximizing cash flows by lowering interest expense. How do you drive a higher rating? With multiple interest rate increases on the horizon over the next two years, improving key metrics that Moody's, S&P, and Fitch analyze should be part of the utility strategy. We discuss the ratings playbook you can follow.
New to the Power and Utilities business? Here’s a course on industry basics - finance, operations, and regulation!
Welcome to the Electric Industry
Are you new to the electric industry and need to get up to speed quickly? This course gives a high level overview of the business - operations, finance, and governance. Be an expert!
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 UAES membership! Just use the code Newmember20 at checkout!
Final thoughts for this issue - Keep your goals fresh and dream big!
“The great secret about goals and visions is not the future they describe but the change in the present they engender.”
“I am lucky that whatever fear I have inside me, my desire to win is always stronger.”