Course Modules

Module 1: Principles of Utility Tariff Regulation

• Core objectives: cost recovery, efficiency, equity, affordability

• Regulatory accounting and determination of revenue requirement

• Exercise: Calculate the revenue requirement for a sample utility

Module 2: Tariff Methodologies Foundations

• Cost-Plus/Return on Rate Base models

• Price Cap and Incentive-Based (I-B-X) models

• Group activity: Compare strengths and weaknesses of each method

Module 3: Tariff Methodologies Advanced Applications

• Hybrid and performance-based models

• Case Study: Applying methodologies to a case study utility

• Workshop: Designing a methodology mix for a given context

Module 4: Tariff Structure Design Fundamentals

• Designing IBTs, uniform volumetric tariffs, fixed charges

• Differentiating tariffs by customer class (domestic, commercial, industrial)

• Exercise: Simulate the impact of structure changes on revenues

Module 5: Tariff Structure Design Practical Case Work

• Analyze real-world tariff structures and outcomes

• Explore progressive vs. regressive tariff impacts

• Case Study: Evaluating a national tariff reform scenario

Module 6: Affordability Analysis Concepts & Data

• Defining affordability and key metrics (expenditure shares, poverty lines)

• Collecting and analyzing household survey data

• Exercise: Conduct a baseline affordability assessment

Module 7: Affordability Analysis Advanced Tools

• Willingness-to-pay studies, income elasticity, and targeting mechanisms

• Workshop: Simulate policy interventions to improve affordability

Module 8: Financial Modeling for Tariff Setting

• Building integrated financial models in Excel

• Projecting revenues, O&M costs, capital expenditures, and cash flows

• Lab: Build a simplified tariff model with scenario analysis

Module 9: The Tariff Review Process and Stakeholder Engagement

• Utility submissions, regulatory review, public participation

• Managing political economy challenges and objections

• Role Play: Simulate a public hearing on a proposed tariff increase

Module 10: Social Tariffs and Subsidy Mechanisms

• Design of lifeline tariffs, targeted subsidies, and funding approaches

• Workshop: Develop a full tariff proposal with affordability safeguards

• Capstone Project: Present tariff proposal for peer and instructor review