This course is intended for anyone needing or wanting a more thorough understanding of the ratemaking process natural gas companies follow to set rates charged to customers. Topics covered include the case for decoupling, early decoupling initiatives, evolution of decoupling mechanisms, balancing accounts: regulatory assets and liabilities, alternatives to decoupling mechanisms: rate stabilization plans and straight fixed variable rate design as well as decoupling observations: state of the states, implementation complexities and underlying rate design issues.
As a result of taking this course, the student should learn the following:
* Why volumetric rates do and dont make sense
* Recent trends that reveal problems with traditional rate design methods
* Evolution of methods to decouple revenue from throughput
* The basis and validity of the arguments for and against decoupling
* Alternatives to decoupling
* The purpose and application of regulatory Balancing Accounts
This course is included in the Ratemaking Process Library and the SGA Core WBT Library.