Cost of Service Part 2: Functionalization, Classification, and Allocation

Date: Wednesday, November 1, 2023
Time: 02:00 PM ET / 01:00 PM CT / 12:00 PM MT / 11:00 AM PT [Prevailing Time]
Presenter: Craig Woycheese, Senior Rate Analyst, Toth and Associates
Moderator: Melissa Wood, MBA, CPA, CFPC, Chief Financial Officer, First Electric Cooperative Corporation
Learning Objectives:
Section 1: Power Cost Allocation to Rate Classes – In this section, you will learn about the different methods used to classify and allocate power supply costs.
Section 2: Distribution Customer Cost Allocation to Rate Classes – In this section, you will learn about the allocation methods used for distribution customer costs.
Section 3: Distribution Demand Cost Allocation to Rate Classes – In this section, you will learn about the allocation methods used for distribution demand costs.
Section 4: Determination of Rate Adjustments per Rate Class – In this section, you will learn how to determine the rate adjustment per class using the cost of service.

Section 5: Determination of Unit Costs – In this section, you will learn about calculating unbundled unit costs by allocating costs to each rate class.
Field of Study: Finance
Program Level: Basic
CPE Credit: 1.5 Credit Hour
Delivery Method: Group Internet-based
Prerequisite(s): No advanced preparation or prerequisites are required for this course.
  Order Recording

Course Description

Are you ready to take your cost management strategies to the next level? Are you ready to take your cost management strategies to the next level? Throughout this informative session, you'll uncover the key strategies and methods necessary to effectively allocate costs and adjust rates for various customer classes. Learn about the different methods used to classify and allocate power supply costs, how to allocate customer costs, and strategies for assigning distribution demand costs. Discover how to determine rate adjustments using a cost-of-service approach, and gain the skills to calculate unbundled unit costs by allocating costs to each rate class. By the end of this webinar, you'll be well-equipped to navigate the complexities of cost allocation and rate adjustments, making informed decisions that benefit both your utility company and your members. Don't miss out on this invaluable opportunity to enhance your expertise in utility rate management.

Presenter and Moderator Bios

Presenter: Craig Woycheese, Senior Rate Analyst, Toth and Associates

Craig Woycheese is a Senior Rate Analyst at Toth and Associates. His work experience with planning for electric power systems has included all facets of load forecasting, customer usage data verification, and economic analysis. His other responsibilities in rate analysis and cost of service analysis include plant and expense allocations, revenue projections, determination of rate of return by rate class, and final rate design.

He has provided cost of service and rate assistance for electric utilities across the Midwest, including Missouri, Arkansas, Oklahoma, and Iowa. Craig is skilled in presenting study results to utility management, plus document preparation, and supporting testimony for Public Service Commissions.

Affiliations and Honors:

• Association of Government Accountants Member
• American Public Power Association Member

Education:

• Bachelor of Arts in Business & Accounting ? Drury University
• Master of Business Administration ? Missouri State University

Publications:

• A. L. Toth, C. R. Woycheese and J. B. Chapman, “Rate Considerations Related to Solar Distributed Generation,” 2018 IEEE Rural Electric Power Conference (REPC), Memphis, TN, USA, 2018, pp. 50-60. doi: 10.1109/REPC.2018.00017

Moderator: Melissa Wood, MBA, CPA, CFPC, Chief Financial Officer, First Electric Cooperative Corporation

Melissa Wood is the Chief Financial Officer at First Electric Cooperative Corp. in Jacksonville, Arkansas. She has been with the Coop since December 2012. Prior to her career with the Coop she was in the banking industry in New York for 12 years with JP Morgan and Bear Stearns. Melissa received her bachelor of business administration with a concentration in accounting from the University of Central Arkansas in 1991 and her masters of business administration from Memphis State University in 1994. She is a certified public accountant holding certificates from Arkansas and New Jersey. Melissa currently serves on the NSAC National Board of Directors, representing the Electric Cooperative Chapter. 

Cost
Free for NSAC Members / $56.00 for Non-Members

Delivery System

• All programs are delivered using the Zoom platform.
• Confirmations will include log-in instructions.
• Participants are able to participate using any device with an Internet connect (if the device does not have speakers, the participant can also dial-in) or they can participate with audio only by dialing in.
• All registrants will receive a link to the CLN’s recording by email within 48 business hours of event’s conclusion.
• There will be assistance available to help with technical and connectivity issues up to 10 minutes prior to the start of the presentation.

Registration

All registration is done on-line and each guest must provide their name and email address to participate. All NSAC members may register for free. Non-members may register for a nominal fee.

Refund Policy

NSAC will not issue refunds for CLNs. If a registrant is unable to participate in the CLN and provides notification to info@nsacoop.org 48 hours prior to the session, a credit will be provided for a future CLN. Alert the NSAC staff member monitoring the CLN if technical difficulties are encountered and technical support will be provided to eliminate problems with future CLNs.

Additional Information

Live participation is required for CPE credit and polling questions must be answered to document your active participation. All registrants will receive an email following the session with links to the slides and/or handouts, and a link to the CLN recording (unless otherwise stated). If you are unable to participate in the live session, you can still watch the recorded session, but you will not be eligible for CPE credits. Those eligible for credits will receive their certificate by email with 7 business days.

For more information regarding NSAC CLNs or administrative policies such as complaint and refund, contact the NSAC Headquarters, 7946 Clyo Road, Suite A, Centerville, OH 45459, 937-222-6707, or info@nsacoop.org.