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July 28, 2013
Brattle Principals Philip Hanser and Bente Villadsen to Participate in Edison Electric Institute Advanced Rate Course

Brattle principals Philip Hanser and Bente Villadsen will present at the Edison Electric Institute (EEI) “Electric Rate Advanced Course: Rates to Meet New Market Opportunities and Constraints,” taking place July 28 – 31, 2013 at the University of Wisconsin Madison.

The program aims to teach participants ratemaking tools to meet today’s business challenges. Presenters will give an overview of ratemaking basics; current ratemaking issues, such as those surrounding the prospective implementation of the smart grid; rate policies needed to build sustainable energy efficiency businesses and those likely to be encountered in context of policy mandates to promote renewable resources; new technical issues associated with determining the cost of equity in today’s risk-averse, turbulent capital markets, and related issues of rate case strategy; new information on customer attitudes, and what they mean for the development of effective regulatory and marketing strategies; and ratemaking issues associated with alternative regulatory mechanisms to address contemporary operating challenges without chronic under-earning or annual rate cases.

Dr. Villadsen will present a session on “Current Issues in Cost of Capital,” in which she will review cost of capital and how markets and rate design affect the cost of capital. She will also discuss the use of methods across jurisdictions, sources of old and new risk, earned returns versus allowed returns, and recent rate case issues. Mr. Hanser will present four sessions, including: “Issues in Cost Allocation,” “Introduction to Marginal Cost,” “Rate Design by Objective” and “Using Customer Information to Develop Better Regulatory & Pricing Strategies.” The latter sections will include a discussion of block rates, dynamic pricing, and strategies for utilities to become more customer and energy efficiency focused.

For more information on the course, please visit the EEI website.