It is no longer acceptable for utility engineers to make spending decisions solely because they make good engineering sense. In today’s environment, they must also demonstrate solid business acumen and show that recommendations make good business sense. With this goal in mind, Business Essentials for Utility Engineers systematically presents each business topic to arm engineers with the tools and vocabulary necessary to be more effective when interacting with senior management, and for promotion to senior management.
This book covers all business concepts important to utility engineers, including regulation, ratemaking, accounting, finance, risk management, economics, budgeting, and asset management. The author applies his vast corporate experience to give readers a solid foundation for business theory, discussing the idiosyncrasies of utilities and using advanced mathematics to demonstrate business concepts. He also explains how to properly apply this theory to utilities, expounding on specific business skills that will greatly benefit utility engineers in their daily jobs.
Chapters are organized to build sequentially upon each other, and take advantage of the mathematical sophistication and deductive nature of engineers when presenting material. After reading this book, utility engineers will view their industry from a new perspective, and will have a greatly expanded business vocabulary. Suitable for self-study, undergraduate study, graduate study, or as a desk reference, this book provides a robust framework for correct business thinking and a solid foundation for further learning.
Preface
Part I : Utilities
Chapter 1 : Types of Utilities
Chapter 2 : Natural Monopolies
Chapter 3 : Utility Ownership
Chapter 4 : Utility Regulation
Chapter 5 : Utility Rates
Chapter 6 : Service Standards
Chapter 7 : Deregulation
Part II : Accounting
Chapter 8 : The Basic Accounting Equation
Chapter 9 : Journals, Ledgers, and Accounts Accounting Principles
Chapter 10 : Financial Statements
Chapter 11 : Other Types of Accounting
Part III : Economics
Chapter 12 : Supply and Demand
Chapter 13 : Market Pricing
Chapter 14 : Producer Surplus
Chapter 15 : Monopolistic Pricing
Chapter 16 : Business Cycles
Part IV : Finance
Chapter 17 : Time Value of Money
Chapter 18 : Company Valuation
Chapter 19 : Market Efficiency
Chapter 20 : Capital Structure
Chapter 21 : Tax Shields
Chapter 22 : Bankruptcy
Part V : Risk
Chapter 23 : Probability and Statistics
Chapter 24 : Stock Price Movement
Chapter 25 : Diversification
Chapter 26 : Portfolio Theory
Chapter 27 : Capital Asset Pricing Model
Chapter 28 : Financial Options
Chapter 29 : Real Options
Part VI : Financial Ratios
Chapter 30 : Profitability Ratios
Chapter 31 : Activity Ratios
Chapter 32 : Leverage Ratios
Chapter 33 : Liquidity Ratios
Chapter 34 : Market Ratios
Chapter 35 : DuPont Analysis
Chapter 36 : Residual Income and EVA
Part VII : Ratemaking
Chapter 37 : Regulatory Goals
Chapter 38 : Revenue Requirements and the Rate Base
Chapter 39 : Rate Design
Chapter 40 : Rate Cases
Chapter 41 : Rate Base Misconceptions
Part VIII : Budgeting
Chapter 42 : Top-Down Budgeting
Chapter 43 : Bottom-Up Planning
Chapter 44 : Types of Budgets
Chapter 45 : Project Prioritization
Chapter 46 : Business Case Justification
Part IX : Asset Management
Chapter 47 : What Is Asset Management?
Chapter 48 : History of Utilities
Chapter 49 : History of Asset Management
Chapter 50 : Organizational Functions
Chapter 51 : Asset Management Process
Index
