IN-PERSON CLASSROOM SEMINARS

View PGS Client List
Essentials of Regulatory Finance--In Partnership with SNL Energy


A Two-Day Classroom Seminar (CPE Approved)

Essentials of Regulatory Finance teaches the skills needed to apply the principles of corporate finance to utilities. Combining intensive instruction on theory and application, supplemented by real life examples, ERF provides the equivalent of graduate level instruction under the guidance of one of the most highly respected academics in energy finance.

Classwork features problem sets that illustrate the nuances of finance issues in this complex sector under the current regulatory environment.

What You Will Learn
  • A thorough understanding of the issues in cost of capital calculations, capital allocation frameworks and alternative capital structures
  • Familiarity with the key metrics for assessing risk and performance
  • The advantages, drawbacks and impact of capital-raising instruments common to utilities
  • Knowledge of equity performance measures, including economic value added (EVA), dividend discount model (DDM), cash flow return on investment (ROI) and key financial risk ratios
  • Exposure to the ways utilities utilize hedging and other risk management practices
  • A grasp of the effects of regulation and rate cases on a company's financial decision-making frameworks and financial outlook
Seminar Agenda
Untitled Document

8:30 am
DAY ONE
Registration and continental breakfast open
9:00 am
The Regulatory Process - Overview and Key Issues

  • Cost of service, revenue requirements and rate cases
  • Computation of revenue requirements
  • Rate base and rate of return
  • Rate case issues in the current regulatory environment

10:00 am
Capital Allocation and Economic Value Creation

  • Net Present Value (NPV) vs. revenue requirements

10:30 am
Break
10:45 am
Risk Analysis and Financial Statements

  • Accounting vs. economic metrics
  • Essential ratios for measuring risk and performance: Interest coverage, fixed charge coverage, dividend payout, ROE, market value-to-EBITDA, ROTC
  • Impact of business risk and competition on financial ratios
  • Risk profile of utilities
  • Influence of unregulated activity
  • Impact of the current financial environment

11:30 am
Determining Credit Ratings
12:00 pm
Lunch
1:00 pm
Rate of Return and Value Creation

  • Spread and return on invested capital (ROIC)
  • Linking capital budgeting and returns

1:30 pm
Cost of Capital and Capital Structure

  • Understanding risk and return in capital markets
  • Modern portfolio theory and asset pricing models
  • Cost of equity methodologies and illustrations
  • Practical applications illustrated through case study
  • Divisional cost of capital - unbundling risk and return across segments: generation vs. transmission vs. distribution
  • Appropriate capital structures in a restructured regulatory environment
  • Optimal capital structure simulation model
  • Case Study: Florida leverage formula

3:00 pm
Day One concludes
8:30 am
DAY TWO
Continental breakfast opens
9:00 am
Utility applications and cutting edge techniques

  • Contemporary rate of return techniques
  • The new performance metrics applied to utilities
  • Cutting edge techniques in capital allocation
  • Case studies

10:00 am
Break
11:30 am
Performance-Based Regulation and financial implications: Alternatives to Traditional Ratemaking

  • Focused vs. integrated rate of return incentives
  • Price cap regulation
  • Market basket ratemaking
  • Innovative rate mechanisms

12:00 pm
Lunch
1:00 pm
Risk-Mitigating Mechanisms and Regulatory Policies
3:00 pm
Program concludes

Hotel and Seminar Information
This two-day seminar will be held at the hotel listed below. The seminar will start promptly at 9:00 AM and will finish at 3:00 PM on the first day. On the second day, the seminar will resume at 9:00 AM and will finish at 3:00 PM. The program includes continental breakfast, lunch and all program work materials. Dress is business casual.
COVID 19 Information: Please click here for the PGS Covid-19 policy. You can confirm each hotel's specific COVID 19 policy using the link(s) provided below.
Registration Fee and Discounts
The price for this comprehensive two-day seminar is $1,895 (USD).
Register online or Call (440) 853-1038.
  • Additional attendees and government employees receive a 10% discount.
  • Register 4 or more attendees and receive 20% Off. Special pricing is available for groups of 5 or more.
    If you want attendees to pay with separate credit cards or have other questions, please call (440) 853-1038 for assistance.
Payments and Cancellations
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made. Please make checks payable to "PGS Energy Training" 26 Teal Lane • Hilton Head Island, SC 29926. Cancellations will result in a credit that is good for 2 years which can be transferred to a colleague. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (440) 853-1038.
CPE Credits in Specialized Knowledge

This live group seminar is eligible for 9.5 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.

PGS Energy Training is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements.
PGS Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd. Please inform PGS Energy Training that you are a GARP CPE participant upon seminar registration.

The Global Association of Risk Professionals (GARP) is a not-for-profit membership association dedicated to preparing professionals and organizations for making better-informed risk decisions. GARP's membership represents more than 150,000 risk management practitioners and researchers at academic institutions, banks, corporations, government agencies, and investment management firms in 195 countries and territories. GARP administers the Financial Risk Manager (FRM) and Energy Risk Professional (ERP) Exams – certifications recognized by risk professionals worldwide. Visit www.garp.org/cpd.
Who Should Attend

Corporate finance, treasury, investor relations or corporate strategy/development professionals at power or gas companies. Professionals in investment banking, project finance or equity-fixed-income research. Traditional asset managers, as well as asset managers and investors at private equity, sovereign and hedge funds. Consultants, accountants and lawyers who advise power and gas clients. Industry regulators and staff.

Ratings agency professionals. Others seeking a thorough understanding of corporate finance issues and analyses for regulated utilities

Prerequisites and Advance Preparation

This program presumes an understanding of basic accounting and finance concepts, as well as familiarity with utility business models.

Why Choose PGS?

PGS in Partnership with SNL Energy seminars are known for their clear explanations and in-depth content. Register today, and join the energy professionals who have already attended one of these proven programs.

Program Level & Delivery Method
Basic level. This fundamental course begins with basic material and then proceeds to the intermediate level. Delivery method is "Group-Live.”