Utility Accounting Education Update
The latest in electric co-op and utility accounting and finance, developing electric rates, and financial management
ESG and Electric Rates
August, 2021
This month’s focus is on implementing an electric co-op or utility strategy. The finance function is an integral part of strategy implementation since all strategy needs funding. So, the impact on electric rates and cash flow is always a consideration. Here are resources on adding environmental, social, and governance (ESG) to your reporting, the impact on your bond rating, and alternatives to rate increases when the Electric Board may not be able to approve a rate increase.
Adding SASB ESG to Power and Utilities Reporting
Environmental, Social, and Governance = ESG. How can this become a part of financial reporting and why is it important?
Environmental, Social, and Governance (ESG) and sustainable business practices are a key component of electric utility and cooperative strategy. Measures from the Sustainability Accounting Standards Board (SASB) can be woven into business planning and financial reporting. This article discusses how.
Your electric co-op/utility board won’t increase rates, what are some options?
Electric utilities of all types (electric cooperatives, investor-owned, and public power) have oversight boards or commissions at the state and local level responsible for approving electric rates. They base their decisions on rate studies prepared to estimate the amount of revenue provided from rates, comparing those revenues to expenses, debt service, capital improvements, and the expected return on ratebase.
There are times that these oversight bodies may not pass or may delay rate increases that are needed. Reasons vary, I.e., lack of convincing an increase is required, a compelling argument not presented by management, or politics and ratepayer pushback. 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.
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!
Are you working hard but not meeting your goals? Here are some proven methods in time blocking, an integral component of Getting Things Done (GTD)!
Work Time Blocking and Getting Things Done to Meet Your Goals
Do you ever feel like you can’t focus on your goals, that too many things interrupt your day, too many fires need putting out, that your presence is “necessary” at many meetings and events?
The practice of “time blocking” may hold some answers and relief for your situation.
What does this have to do with the power and utilities business? Any profession requires focus, wearing many hats, and juggling projects and tasks. Time blocking is an effective way to keep on task and maintain focus so you can reach your goals.
UAES online courses in electric co-op and utility construction accounting, the driving force behind electric rates!
Electric co-op and utility construction accounting series
Utility rates are driven by infrastructure spending to serve customers. The construction process consists of 4 steps - develop standard units, add overheads, analyze and close projects, and establish useful fixed asset records. Our 4-part class series on the electric construction process takes a deep dive into each area. The courses include detailed calculations, examples, journal entries, and downloadable materials that you can plug right into your process!
Try out one of our courses for free!
Try a UAES course for free to find out how our library of online, on-demand courses can help expand your power and utilities knowledge, add value to your organization, and add to your career skills!
If you are a Board Member or new electric cooperative or utility employee, the UAES course - Electric Utility Ratemaking | Introduction to the Process | Board Member, Management, and New Employee Training - will give you insights into the steps that go into developing electric rates. You’ll see how the sausage is made, but stay at a very high level for an understand of the process without rolling up your sleeves and getting down into the details. If you are responsible for approving electric rates, provide inputs into an electric rate study, or just want an understanding of each area and some good questions to ask, then this course is for you! It’s online, on-demand, and eligible for continuing professional education credits.
Use the code: uaesfreerates
at the checkout and take the course!
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! See you next month, or check us out anytime at:
UAES Teaches Accounting and Finance to Electric Co-ops and Utilities
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