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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 typical rate case timetables, determining revenue requirements, rate base operating costs and cost of capital as well as cost allocation and rate design.

As a result of taking this course, the student should learn the following:
  • * Key considerations when deciding whether or not to file for new rates
  • * The basics for determining revenue requirements, revenue deficiencies and designing rates for full revenue recovery
  • * Cost of Capital issues as they apply to rate design
  • * The various components that make up Operating Expenses
  • * How adjustments to historic costs are applied for the recovery period
  • * How costs are allocated to various customer and/or service types
  • * Basic procedures in filing a rate case

This course is included in the Ratemaking Process Library and the SGA Core WBT Library.
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