2018 AGA Rates School: An Introduction to Natural Gas Ratemaking

July 23, 2018

July 26, 2018

0:00 To 0:00

Gleacher Center, University of Chicago




Event Description

Course of Study


Regulation touches nearly every aspect of the natural gas industry. This course will consider the policy and practice of state and federal regulation of the industry and the legal foundation upon which the regulatory process is based.

Finance and Accounting

Regulation depends crucially on accounting and finance to determine reasonable profits and rates. This course will provide the student with a basic understanding of the key principles utilized to determine a utility’s total revenue requirement, including the assessment of business risk and the determination of a utility’s rate of return on equity


Economic theory provides the basic foundation for the utility ratemaking process. This course covers the basic concepts and the applications of those concepts to utility ratemaking.

Gas Supply Planning and Procurement

The planning and acquisition of gas supplies by a local distribution utility continues to play a key role in serving the requirements of both its sales and transportation service customers. This session will cover the fundamentals of gas supply planning and procurement, including planning objectives, demand forecasting, resource portfolio concepts, hedging techniques, and capacity resource optimization.

Innovative Costing and Ratemaking

The natural gas distribution industry is facing a fundamental change in the consumption pattern of consumers. Revenue stability, proper pricing signals, service unbundling alternatives, and the costing/ratemaking methods used by natural gas utilities will be explored in depth.

Energy Efficiency and Conservation

With the dramatic increase in natural gas prices in the past decade regulators, consumers, and utilities are exploring ways to promote efficient consumption choices. This section of the course will explore ways to efficiently promote conservation efforts that align the interests of consumers and natural gas utilities.

Interactive Case Studies

The rate case is the primary venue in which a utility can adjust its revenues and rates. Through the use of interactive case studies and team problem-solving activities, this course will present the key issues, the positions of parties, the nature of the evidentiary content, practical ratemaking solutions, and the regulatory process commonly observed in the rate cases of local distribution utilities and gas pipeline companies. Two separate case studies will be presented with students having the opportunity to select the case study that best complements their current work responsibilities.


University of Illinois Springfield

University of Illinois Springfield One University Plaza MS UHB 4000 Springfield, IL 62703-5407 USA


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