EBA Primer Series. December 9-10, 2013 The Brown Palace Hotel and Spa th Street, Denver, Colorado 80202

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1 EBA Primer Series December 9-10, 2013 The Brown Palace Hotel and Spa th Street, Denver, Colorado 80202

2 EBA Primer Series Electricity and Electric Rate Regulation: An Introduction The goal of this primer is to provide an overview of electric regulation at the federal and state levels. The course begins with a brief overview of how electricity is generated, transmitted, and delivered to customers, and covers key legal milestones in electric regulation since commercial electric service began in the 1870s. The course explains how state and federal jurisdiction over different segments of the industry emerged under the Federal Power Act of 1935 and later legislation, including the Public Utility Regulatory Policies Act of 1978 and the Energy Policy Acts of 1992 and We will review key regulatory concepts underlying all forms of regulation, from traditional cost-of-service regulation to the parameters for setting market-based rates. The course will also cover alternative regulatory regimes, development of competitive wholesale and retail electric markets, enforcement of the prohibition against market manipulation, the role of Regional Transmission Organizations, and the reliability regime administered by the North American Electric Reliability Corporation. MONDAY, DECEMBER 9, 2013 Noon - 1:00 pm Boxed Lunch and Networking Hour PROGRAM SCHEDULE The Brown Palace Hotel and Spa th Street, Denver, Colorado :40 3:00 pm The Role of Non-Jurisdictional Entities in the Regulatory Scheme Joe Wilson, General Counsel, Platte River Authority 1:00-1:15 pm Welcome and Introduction to the Electric Industry Adrienne E. Clair, President, Energy Bar Association Stinson Morrison Hecker LLP 1:15-1:45 pm History of the Electric industry and Legal Overview Adrienne E. Clair, President, Energy Bar Association Stinson Morrison Hecker LLP Key Legal and Regulatory Milestones Legal and Economic Overview Extent and Limits of State and Federal Jurisdiction under State Law and the Federal Power Act State Regulation and Limitations (Attleboro Gap) Federal Regulation under the FPA FERC Enforcement Authority Lawrence R. Greenfield, Primer Dean 3:00 3:20 pm Break 3:20 5:20 pm Traditional Cost of Service Regulation Cost of service regulation what it means The five-step process to determine regulated rates The revenue requirement Cost functionalization Cost classification and the FERC Uniform System of Accounts Cost allocation Rate and tariff design 5:30 pm Networking Reception (off site) 7:00 pm Dinner On Your Own 1:45 2:15 pm Key Regulatory Constructs Just and reasonable rates Prudent Investment Used and Useful Investment Known and Measurable Costs Cross Causation and Subsidization

3 TUESDAY, DECEMBER 10, :30-8:00 am Continental Breakfast 8:00-8:45 am Alternative Regulatory Structures - Market-Based Rates v. Traditional Cost of Service Regulation Legal and economic basis for market-based rates Market Analysis Scope of Traditional Regulation Mixed regulation when some components are competitive and others are not Debra Irwin, Group Manager West Group5, FERC Office of Energy Market Regulation 8:45-9:00 am FERC Oversight of Market Manipulation 9:00-10:00 am Diverse Market Structures Across the Nation and Regulatory Implications Evolution of Competitive Generation From PURPA to RTOs RTOs Purpose/Authority and Regulation Non-RTO Regions 10:00-10:20 am Break 10:20-11:20 am Overview of Relevant Electric Markets Energy (day-ahead, real time) Capacity (in some RTOs) Ancillary Services Arnie Quinn, Director of the Division of Economic & Technical Analysis, FERC Office of Energy Policy & Innovation 11:20 am - 12:20 pm Reliability Regulation under Section 215 of the FPA Federal Power Act Section 215 Responsibilities of the Electric Reliability Organization (NERC) and FERC Standards Development Process Enforcement & Settlement Practice Western Electricity Coordinating Council Ken Burgess, Chief Compliance Officer, Colorado Springs Utilities 12:20-12:30 pm Closing Remarks Helpful Reference Materials Text: J. Lesser and L. Giacchino, Fundamentals of Energy Regulation, 2d ed. (will be published by November 2013) Continuing Legal Education (CLE) credits - MCLE accreditation has been (or will be) requested from states with general MCLE requirements. For questions on CLE, EBA-CLE@EBA-NET.ORG. About the EBA Primer Series: One of the goals of the Energy Bar Association s Strategic Plan is to promote excellence in the practice of energy law by enhancing educational programming opportunities. To further this goal, EBA has established a primer program, focused on teaching core regulatory and legal concepts and basic industry fundamentals that every energy law practitioner must understand. The overall goal of this course is to provide attorneys new to the electric industry a foundational understanding of the industry and how it is organized and regulated, so they can better approach, research, and evaluate the issues their clients face. Looking for additional programs? Visit the Calendar of Events at

4 About the EBA Primer Deans To develop and implement the Primer Program series, EBA appointed three outstanding individuals to serve as Primer Deans. With oversight by the EBA Board, the Deans have planned and developed the primer program and course materials. EBA is honored and grateful for their thoughtful leadership and time. Lawrence R. Greenfield Lawrence R. Greenfield has been with the Federal Energy Regulatory Commission for over 34 years. Since November 2006, Mr. Greenfield has served first as Deputy Associate General Counsel and more recently as Associate General Counsel in the Office of General Counsel s Energy Markets division. Among other positions at the Commission, Mr. Greenfield also served for over 11 years as Deputy Assistant General Counsel in what was then the Office of General Counsel s Electric Rates and Corporate Regulation section. Before that, Mr. Greenfield served both as a trial attorney and later a supervisory trial attorney in what was then the Office of General Counsel s Hydroelectric and Electric Litigation section, as well as a staff attorney in Electric Rates and Corporate Regulation section. Mr. Greenfield holds a JD degree with honors from the George Washington University s National Law Center, where he was a member of the law review. He holds an AB degree from the College of William and Mary. Jonathan Lessor Dr. Jonathan Lesser is the President of Continental Economics, Inc., an energy regulatory and litigation consulting firm. He has 30 years of experience working for regulated utilities, governments, and as an economic consultant. Dr. Lesser has testified extensively on multiple aspects of regulated ratemaking before public utility commissions in many states, FERC, international regulators in Latin America and the Caribbean, and in commercial litigation cases in state and federal district courts. Dr. Lesser has also testified before the U.S. Congress and state legislative committees on a variety of energy policy and competitive market design issues. He has authored numerous academic and trade press articles, and coauthor of Environmental Economics and Policy, Principles of Utility Corporate Finance, and Fundamentals of Energy Regulation. Dr. Lesser holds a B.S. in Mathematics and Economics from the University of New Mexico, and a M.A. and Ph.D. in Economics from the University of Washington. Jonathan D. Schneider Jon is a partner with Stinson Morrison Hecker, LLP, resident in the Washington, D.C. office. Active in the energy space for over 25 years, Jon represents investor owned utilities, municipalities, investors and marketers before the Federal Energy Regulatory Commission, at state commissions around the country, and in connection with energy-related transactions. He is an experienced administrative litigator and appellate advocate, and played a formative role in the development of open access policy in both the natural gas and electric industries. Jon's transactional experience includes management of issues arising under the Federal Power Act, the Public Utility Holding Company Act (PUHCA) and the Public Utility Regulatory Policies Act (PURPA). In the policy arena, he speaks for the Large Public Power Council, the trade association representing the largest state and municipal utilities in the nation. He holds a J.D. from Albany Law School and a degree in economics from Colgate University. He sat on the Board of the Energy Bar Association from 2001 to 2004 and is listed in Best Lawyers and Super Lawyers.

5 GENERAL REGISTRATION INFORMATION THREE WAYS TO REGISTER (1) REGISTER ON-LINE at the secure eba web site (2) FAX your completed registration form with credit card payment (no checks or money orders) to (3) MAIL your completed registration form with payment to: Energy Bar Association, 1990 M Street, N.W., Suite 350, Washington, D.C Please do not both fax and mail, as this may result in duplicate charges. You may send one check for multiple registrants. THE DEADLINE FOR RECEIPT OF ADVANCE REGISTRATION IS NOVEMBER 30, Conference registrations will only be accepted when accompanied by a check, money order, government purchase order/training form or credit card information and may be limited by the capacity of the facilities. registrations will not be held without payment. Cancellation Policy: Refunds will be given to registrants who submit written cancellation to the address shown on the registration form by November 30, 2013, less a $50 administrative fee. The cancellation policy also applies to registration forms that are received and accepted after the deadline date. no refunds will be given after November 30, (If cancellation is requested after deadline and accepted, there will be a $75 administrative fee). substitutions are acceptable at any time (non-members substituting for members will be charged the difference between member and non-member fees). Please note that regardless of the date the cancellation notice is received, no refunds will be processed until after the program. Confirmations will be sent to registrants via if an address is provided. For more information contact the EBA at (202) HOTEL ACCOMMODATIONS: The Brown Palace Hotel and Spa, th Street, Denver, Colorado To make your reservation please call Rooms are $ 179 (single/double) and the block will be held until November 16, Free Wifi for EBA Attendees, in sleeping rooms. TRANSPORTATION TO/FROM AIRPORT: The most economical way to get to and from the airport is using the Super Shuttle service which is $22 per passenger per way. Taxis are $55 flat rate. BADGES: Please wear your badge at all times when attending official EBA functions. Badges are a security measure to identify people who have a legitimate reason to be in the meeting areas. CONTINUING LEGAL EDUCATION: MCLE accreditation has been (or will be) requested from states with general MCLE re-quirements. Each state has its own rules and regulations defining CLE. For questions on CLE EBA-CLE@eba-net.org. To assure accreditation, the necessary CLE information must be completed and submitted at the meeting. Registration Form: Electricity and Electric Rate Regulation (December 9-10, 2013) LAST NAME: FIRST NAME: (M.I.): BADGE NAME (First Name or Nickname): FIRM/COMPANY/AGENCY ADDRESS CITY STATE ZIP PHONE ADDRESS REGISTRATION FEES: UNLESS OTHERWISE NOTED, REGISTRATION FEES INCLUDE LUNCH, BREAKFAST, BREAKS, AND CONFERENCE HANDOUTS. REGISTRATION INCLUDES THE TWO-DAY PRIMER, ATTENDEE HANDOUTS, LUNCH, BREAKFAST AND BREAKS. EBA MEMBER NON MEMBER ATTORNEY $350 $395 NON ATTORNEY $375 $400 YOUNG ATTORNEY- PRIVATE* $275 $300 *THOSE WHO GRADUATED FROM LAW SCHOOL WITHIN LAST THREE (3) YEARS, THAT IS, ON OR AFTER JANUARY 1, 2010 GOV T/ STUDENT $100 $125 SPECIAL EVENT: NETWORKING RECEPTION MONDAY EVENING HOSTED BY ROCKY MOUNTAIN CHAPTER $10 (DISCOUNTED FEE FOR PRIMER ATTENDEE) SESSION MATERIALS WILL BE ED TO ALL REGISTRANTS PRIOR TO THE MEETING. PAYMENT METHODS: (TAX ID # ) Check Enclosed (PAYABLE TO: ENERGY BAR ASSOCIATION) Mastercard VISA American Express Discover Government Purchase Order Enclosed Amount Enclosed Cardholder Name Signature of Cardholder Card#: I plan to apply for Continuing Legal Education credit in the following states: *Only provide ID if credit is required as fees are involved with many states if credit is requested. State: State Bar/ID#: State: State Bar/ID#: State: State Bar/ID#: State: State Bar/ID#: MAIL your completed registration form with payment to: Energy Bar Association, 1990 M Street, N.W., Suite 350, Washington, D.C Expiration Date: