Designed for secondary level students, this guide describes the process of establishing utility rates for gas, electricity, telephone, or water services. Insights are presented into the parties and interests involved in rate changes, along with procedures and issues that influence decision-making. The goals of this teaching guide include: (1) understanding the basic processes of utility ratemaking; (2) learning how this process accommodates the needs of all affected constituents; and (3) refining communication, critical thinking, and decision-making skills. Lesson plans are included for two, three, and five day units. Teacher background materials, lesson notes, student worksheets, a pre-test, a post-test, a simulated case study, suggestions for expanded activities, and a nine item bibliography are included. An appended separate booklet introduces the contents of an accompanying educational videotape entitled "The Balancing Act." Key issues dealt with by the tape include: (1) utility investment; (2) the treatment of utility expenses; (3) utility profit; and (4) rate design. The roles of a utility, a regulatory commission, and residential, industrial, and commercial customers in the rate establishment process are defined, and the sequence of events that occurs in seeking increased rates is outlined. A typical rate case is simulated and a glossary of terms is included. (JHP)