Tariff Rate Strategies and Cost Recovery Requirements: Implications for Regulators and Utilities (November 5-16, 2018)

Course Offering:

Dates: November 5-16, 2018

Location: Washington, DC

Tuition: $5,500

Code: 5003-WA

CEUs: 6.0




Although ratemaking has evolved into a complex science involving many useful and creative methodologies, the essence of tariff design is a thorough understanding of how to establish a revenue requirement for a regulated utility, translate that overall revenue requirement into a rate design that customers will pay, and use a cost of service study that will aid participants in translating the former into the latter. Accomplishing this requires an understanding of how to determine reasonable investments and costs in providing service.

This two-week-long course course, designed by the Institute for Public-Private Partnerships, A Tetra Tech Company (IP3), will review various ways to design tariffs. Case studies will demonstrate how regulated service providers and their regulators have used cost of service studies and other methodologies to design effective tariffs.


Learning Outcomes:

  • Explain how to set a revenue requirement and translate it into a tariff design
  • Identify the role of a cost of service study in translating a revenue requirement into a rate design
  • Describe the role of the regulator in the tariff-setting process, methodologies, and relationships with service providers
  • Describe the role of the service provider in collecting and analyzing data to reduce costs and improve service
  • Compare case study experiences on how to determine and adjust prices and the implications
  • Demonstrate how to decouple tariff policies from social and political objectives
  • Illustrate how to calculate, analyze, and adjust tariff structures
  • Visit a regulatory commission rate hearing and participate in a mock rate hearing
  • Design a detailed, strategic action plan to apply learning outcomes on the job