Electric Utility Tariff ModelFree Financial Model Download
Build a utility tariff model with multiple customer classes, tiered pricing, peak and off-peak rates, and revenue projections without manually summing customer class revenues. Supports rate case preparation, DSM impact analysis, and utility valuation in one workbook.
Free download. No sign-up required.
About this model
Model a regulated electric utility's revenue requirement using a cost-plus regulatory formula: Revenue Requirement = O&M Expense + Book Depreciation + Recoverable Income Tax + Allowed Return on Rate Base. The rate base is the net book value of utility assets (PP&E); the allowed return is the regulatory WACC (typically 50% debt at 5%, 50% equity at 9.5%, implying 7.25% blended WACC). Fuel costs are fully passed through at zero margin.
The model projects 5-year cash flows for a mid-size IOU with $18B opening gross PP&E and $12M annual MWh sales. Capex grows the rate base (growth capex $500M + maintenance capex at 2% of opening net PP&E); depreciation is straight-line over 40 years. Key outputs: allowed net income, earned ROE, and cash flow after debt service and dividend distributions. Utilities typically pay out 60–80% of earnings as dividends, creating structural negative free cash flow that is funded by continuous debt and equity issuance.
Margin profile: EBITDA margin 35–45% (high due to cost-plus regulation), EBIT margin 15–25% (reduced by heavy depreciation), net margin 8–15%. FFO/Debt of 13–18% is the credit rating threshold. This model is foundational for utility valuations and regulatory case analysis; comparable companies (NextEra, Duke, Southern Company) trade at 12–16x P/E due to predictable earnings and dividend growth.
Recolor to your brand.
Formatted to IB standards.
Named theme colors repaint the whole workbook in one click, on top of an investment-banking structure with blue inputs, black formulas, and green cross-sheet links.
- Brand-ready
- Institutional grade
- Fully auditable
What's included
- Customer classes (residential, commercial, industrial, municipal)
- Consumption assumptions by season and time of use
- Tariff structure with base charges, energy charges, and demand charges
- Tiered and time-of-use rates with peak and off-peak differentiation
- Rate change scenarios and revenue impact modeling
Customer class segmentation
Residential, commercial, and industrial customers are modeled separately with distinct consumption patterns and rate sensitivities, because blending them obscures cross-subsidy and rate design effects.
Tiered and time-of-use rate structures
Complex tariff structures with multiple rate tiers, peak and off-peak periods, and seasonal cost variation are modeled to reflect actual regulatory rate design.
Rate case revenue requirement
Proposed rate increases and tariff changes are modeled to show their revenue impact by customer class and total utility, supporting regulatory filings and investor analysis.
Frequently asked
What is a typical utility tariff structure?+
Most utilities have fixed customer charges per month, energy charges per kilowatt-hour, and demand charges per kilowatt of peak usage for commercial and industrial customers. Some use tiered rates that increase at higher volumes.
How do you model peak and off-peak rates?+
Categorize consumption by time period (peak typically 2-8pm, off-peak all other hours) and apply different rates to each. Industrial customers often pay demand charges based on measured peak kilowatt usage.
What revenue growth should I project for a utility?+
Utilities typically see 1-3% volume growth from population and economic activity, plus inflation-linked rate increases allowed by regulators. Model volume growth and rate changes separately.
What is a demand-side management (DSM) impact?+
Energy efficiency programs, distributed solar adoption, and customer defection reduce kWh sales, which can shrink revenue even if the customer base grows. The model shows the net revenue effect of DSM scenarios.
Who uses electric utility tariff models?+
Utility regulators reviewing rate cases, utility investors modeling revenue, energy consultants designing tariff structures, and rate design specialists supporting regulatory proceedings.
Alex Tapio
Founder of Finamodel • Professional Financial Modeller • Ex-Deloitte
Related templates
Renewable Energy Project Economics Model
Solar, wind, or hydro project generation, power purchase agreements, operating costs, and project IRR.
LNG Terminal Model
Project finance model for liquefied natural gas import or export terminals with throughput and storage economics.
Water Utility Financial Model
Model water utility revenue, infrastructure investment, and sustainability under rate regulation.
Commodity Hedging Model
Structure and monitor hedges for commodity price exposure with effectiveness metrics.