The Energy Group
Link to Institute of International  Education
Mission
Upcoming Events
Services
Staff and Providers
Projects
Clients and Partners

Approach
Course Listing
Planning, Policy and Management
Energy Markets & Regulatory Reform
Electric Power
Gas, Oil & Coal
Energy Efficiency
Renewabe Energy
Environment
About / Contact Us
Application Information
Alumni Corner
Document Download

Private Sector Energy Development

 

Tariff Structure and Analysis focuses primarily on free-market economic theory, utility regulatory principles, and cost-of-service tariff design. These three concepts form the basis of the successful utility financial system in the United States, upon which the private power industry and principles of non-recourse financing were founded. Many countries' state-owned utilities do not have the financial strength to enter long-term contracts without external credit support, largely because they do not have rational tariff systems separated from political influence by regulatory bodies. Workshop is the starting point for training in private power. Participants are encouraged to perform cost-of-service analyses for their own utilities, partly to support tariff reform but also to provide cost data needed for evaluation of their options, one of which is private power.

Tariff Structure and Ratemaking is for government officials and utility executives involved in policy making and planning, and for personnel who wish to develop the expertise of a professional ratemaker. Course provides participants with an understanding of the conceptual considerations of transmission company ratemaking and tools required to integrate rate tariffs with desirable economic policy objectives of government and electric utility companies. It also prepares them for identifying the data requirements of cost allocation and rate design system for wholesale, retail and purchased power rate structures. Training provides skills to analyze the cost and rate significance of long-term electric system development.

Bid Solicitation, Project Evaluation, and Negotiation - Workshop uses the U.S. utility experience with competitive bidding to illustrate many lessons learned: the need for transparency, essential regulatory involvement, preliminary planning, point-based Requests for Proposal, reasons for certain contract terms, stances and maneuvers of negotiating parties, sending the right "signals" to developers and investors, and developing internal analytical methods to support selection and negotiation. Workshop discusses central versus state authority in dictating selection methods, breaking up the vertical integration of utility companies, establishing state-level regulatory bodies, sources of external credit support, and financial integrity of utilities.

In-depth training is for upper-level utility and industrial management and government agency officials who issue Requests for Proposals (RFPs), evaluate proposals and negotiate contracts for energy investments. Course provides the skills necessary to improve probability of success by ensuring RFPs are realistic and adequate, establishing common methods for evaluating proposals, and discussing expectations of other parties in the negotiation process. The project appraisal portion of this course discusses financial selection parameters and non-financial factors such as industrial development, environmental and other societal costs, reliability and deliverability, and indirect benefits of private power projects. The negotiation portion discusses composition of negotiating teams, dynamics of group decision processes, expectations of parties, and legal and ethical constraints on the process.

Previous Page | Next Page