World Trade Center Curacao, Cost of Service Course presented by PURC Organized by AQUALECTRA Curacao, Water & Power

Transcription

1 Overview and Purpose of Cost of Service Studies/ Priorities in Rate Design/ Determining the Revenue Target/ Roles and Impacts of Prices/ Issues in Rate Design/ Uniform System of Accounts/ Embedded Cost of Service/ Marginal Cost of Service/ Cost of Service Data Requirement/ The Pricing Process and Customer Behavior. JUNE 23 27, 2014 World Trade Center Curacao, Cost of Service Course presented by PURC Organized by AQUALECTRA Curacao, Water & Power Page 1 of 9

2 INVITATION COST OF SERVICE TRAINING COURSE Curacao, June 24 27, 2014 Aqualectra together with the Public Utility Research Center of the University of Florida (PURC) is organizing a 4-days course/training on Cost of Service, focused on the electric Utility businesses. The course/training will be given by in this field renowned PURC director, Dr. Mark Jamison ( and PURC director of energy studies, Dr. Ted Kury ( During these training sessions the participants will be confronted with several questions with regards to energy pricing, indentifying service costs etc. What are the challenges and best practices in energy pricing? What are the innovative ideas and best practices for identifying service costs for addressing competitive and environmental issues such as the introduction of SIPP s? This course answers these questions and more as participants will learn core principles and engage in a case study in energy cost analysis and pricing from start to finish. Upon completion, participants will be able to: Prepare for price reviews Develop the basics of a costing methodology Evaluate if the prices are appropriate for market competition Analyze financial statements for rate setting Develop innovative price structures that provide appropriate incentives for consumers and producers This 4-days course will start on Monday June 23 rd, in the evening with a special opening event with a lecture on regulatory aspects. The event will be opened by the Minister of Economic affairs. The course/training will start Tuesday June 24 th and will end on Friday June 27 th, It will take place in the World Trade Centre, Curaçao. Participation fee is $1, (Fifteen hundred US dollars) per person, this includes course package, coffee/thee breaks and lunch; For registration or any other information with regards to this course they can contact Mr. Karel Tujeehut Tel: / and/or Mr. Saniel Theodora Tel: / It is very important for us to have the confirmation of participation as soon as possible and not later than June 6 th, For registration please fill in the attached registration form and forward it to us. Page 2 of 9

3 DRAFT COURSE PROGRAM PURC COST OF SERVICE TRAINING COURSE FOR THE NATION OF CURACAO June 23 7:30 pm Opening event by Honorary Minister of Finance. Lecture on regulatory issues in the Caribbean June 24 8:00 am 8:30 am Course Registration 8:30 am - 10:15 am Session 1: Overview and Purpose of Cost of Service Studies Map of the course Purpose of cost of service studies How cost of service studies are used 10:15 am - 10:30 am Break 10:30 am - 12:00 pm Session 2: Priorities in Rate Design Participants break into small groups and rank priorities in cost of service Stakeholder impacts and perspectives on cost of service Tradeoffs between price signals, transparency, and resource commitments 12:00 pm - 1:00 pm Lunch Page 3 of 9

4 1:00 pm - 2:30 pm Session 3: Determining the Revenue Target Components of the revenue requirement Calculating rate base, rate of return, operating expenditures, and depreciation How the revenue requirement is used 2:30 pm - 2:45 pm 2:45 pm - 4:30 pm Break Session 4: Roles and Impacts of Prices Customer responses to price signals Financial impacts of customer choices Customer discretion and impacts on utility pricing Page 4 of 9

5 June 25 8:30 am - 10:15 am Session 5: Issues in Rate Design Incentives for distributed and renewable generation Quality of service Pricing and system access 10:15 am - 10:30 am Break 10:30 am - 12:00 pm Session 6: Uniform System of Accounts Purpose of the uniform system of accounts Defining cost categories Introduction of case study 12:00 pm - 1:00 pm 1:00 pm - 2:30 pm Lunch Session 7: Case Study in Uniform System of Accounts Smaller groups will work with an actual uniform system of accounts and discuss important considerations for a Curacao system of accounts Groups will then share individual discussions 2:30 pm - 2:45 pm 2:45 pm - 4:30 pm Break Session 8: Embedded Cost of Service Advantages and disadvantages Choosing allocators Applying allocators for both function and customer class Page 5 of 9

6 June 26 8:30 am - 10:15 am Session 9: Marginal Cost of Service Advantages and disadvantages Using different types of cost assignments Marginal costs and economic efficiency 10:15 am - 10:30 am Break 10:30 am - 12:00 pm Session 10: Cost of Service Data Requirements Data requirements for cost of service studies Group discussion of the available data on Curacao, identification of data gaps, and strategies for addressing any gaps 12:00 pm - 1:00 pm Lunch 1:00 pm - 2:30 pm Session 11: The Pricing Process and Customer Behavior Using cost of service to develop customer rates Types of retail rate structures Implementation issues in rate structure 2:30 pm - 2:45 pm 2:45 pm - 4:30 pm Break Session 12: Exercise in Cost of Service Small groups examine methods for o Identifying cost components o Matching cost components with services and customer groups Group debriefing of the exercise Evening Special event Page 6 of 9

7 June 27 8:30 am - 10:15 am Session 13: The End in Mind: Final Steps in Rate Structure How category costs and cost assignment drive rates Designing retail electric rates for residential and commercial customers Priorities and objectives for Curacao 10:15 am - 10:30 am Break 10:30 am - Session 14: Concluding Thoughts and Strategic Planning Challenges and Priorities Seeing stakeholder perceptions Understanding players pressures and responses Key Lessons and next steps 12:00 pm - 1:00 pm Lunch Page 7 of 9

8 TRAINING REGISTRATION FORM Cost of Service Training June 24-27, 2014 MR/MS/MRS. FIRST NAME LAST NAME JOB TITLE ORGANISATION ADDRESS SPECIAL DIETARY NEEDS TELEPHONE FAX MR/MS/MRS. FIRST NAME LAST NAME JOB TITLE ORGANISATION ADDRESS SPECIAL DIETARY NEEDS TELEPHONE FAX REGISTRATION IS POSSIBLE FOR THE FULL FOUR (4) DAYS OR BASIC TRAINING ONLY FIRST TWO (2) DAYS. YOU ARE APPLYING FOR: 1. FULL FOUR DAY TRAINING (June 24 27).. (Registration fee US$ 1, per person) 2. BASIC TWO DAY TRAINING (June 25 25).. (Registration fee US$ 1, per person) CONFERENCE FEES REGISTRATION FEES - DEADLINE DATE FOR REGISTRATION IS June 6TH, 2014 PLEASE NOTE THAT REGISTRATION IS COMPLETED ONLY AFTER PAYMENT IS RECEIVED OR WITH PROOF OF PAYMENT Page 8 of 9

9 REGISTRATION INFORMATION DEADLINE DATE FOR REGISTRATION IS June 6TH, 2014 WORKSHOP FEE For full course June 24 27, 2014 US$ 1, per person Two day basic course June 24 25, US$ 1, per person Please note the following:- 1. Registration is not complete without payment, and thus payment is due in advance. 2. Copies of bank notices for telegraphic transfers must be faxed to Aqualectra upon completion of transaction with bank. 3. A 10% discount will be given to companies registering tree (3) or more persons. However all registrations must be received together for discount to be applied. 4. ALL PAYMENT MUST BE RECEIVED TWO (2) WEEKS PRIOR TO CONFERENCE DATE TO ENSURE REGISTRATION METHOD OF PAYMENT Payment can be effected through our Maduro & Curiel s Bank, mentioning our Company Name : Integrated Utility Holding N.V. Address : Rector Zwijssenstraat 1, Curaçao including the description PURC workshop. Bank account : SWIFT: All wire transfers in Euro's and US Dollars are to be directed to ING Belgium for Euro's and to Standard Chartered Bank for US Dollars: PAYMENTS IN EUR TO: ING BELGIUM SA/NV BRUSSELS IN BELGIUM SWIFT BIC: BBRUBEBB BENEFICIARY BANK SWIFTCODE MCB: MCBKCWCU FOR FURTHER CREDIT OF: NAME, PLACE AND YOUR ACCOUNT AT MCB. PAYMENTS IN USD TO: STANDARD CHARTERED BANK, NEW YORK, NY - U.S.A. SWIFT BIC: SCBLUS33 BENEFICIARY BANK SWIFTCODE MCB: MCBKCWCU FOR FURTHER CREDIT OF: NAME, PLACE AND YOUR ACCOUNT AT MCB. If you require further information or clarification, we welcome you to visit one of our branches or contact our Customer Service Center at (+5999) or your Account Manager. Page 9 of 9