Utility Accounting Education Update
The latest in electric co-op and utility accounting and finance, developing electric rates, and financial management
Electric Vehicle Rates and Utility Accounting and Finance Fundamentals
September/October, 2021
This month’s focus is on electric rate strategies for renewable energy resources. These distributed energy resources (DERs) and electric vehicles have different load profiles than traditional resources and require non-traditional approaches to developing electric rates. We touch on best-practices on rates for DERs and electric vehicles.
We also introduce our “CPE Snippets” course series - courses on best-practices in specific electric areas that you can take in 30 minutes or less.
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Electric vehicle charging subscription rates? Is there an app for that?
A subscription rate to charge my car?
Electric vehicle (EV) sales make up approximately 3.4% of car sales as of mid-2021, with projections of a market share of nearly 30% by 2030. Is your electric co-op or utility's philosophy to promote more electrification of your system? Or, do you want to make sure you're in the game and have rates and options available for your new EV customers? From either approach, there are a variety of rate methods you can use. Here’s an approach to using a subscription rate for your electric vehicle customers.
How to develop electric rates for solar power and other distributed energy resources
A question that electric co-ops and utilities wrestle with is “how do we charge and also compensate our customers that have distributed energy resources (DERs) that are part of our power supply mix?” DER customers ask that same question, too, only in reverse.
This article discusses direction from FERC and the National Association of Regulatory Utility Commission as well as best practices in developing DER electric rates.
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!
Smorgasbord sampler - What type of EV charging rates are being offered by electric co-ops and utilities?
As we are on the left hand side of the bell-curve of EV sales and technology, electric utilities and cooperatives are asking the question:
"Do we want our EV electric rates to spur adoption of EV technology and/or do we want to recover our full costs of serving EV customers?"
You can have both. Let's take a very short tour of some of the rate structures and rebates that electric co-ops and utilities are using in 2021 to either attract customers to purchase electric vehicles, recover their costs to serve those customers, or both.
Introducing - Utility Accounting and Finance Fundamentals!
A “bite-sized morsel” of information for your organization
Utility Accounting and Finance Fundamentals! A stuffy name? Absolutely. But a great name for a choice of short classes that get straight to the point with insights in electric accounting, finance, business processes, electric rates, and strategy implementation. Each class covers an electric industry fundamental area in 30 minutes or less to fit your busy schedule.
Click on the link to see our offering of snippets and the full library of UAES courses that are designed for practical application to your business!
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:
Final thoughts for this issue
“The instant you accept responsibility for everything in your life is the moment you acquire the power to change it.”
“Everybody has their own Mount Everest they were put on this earth to climb.”