CEP Study Guide 2026
Everything you need to pass the CEP exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CEP Exam Format at a Glance
📚 CEP Topics to Study (37)
✍️ Sample CEP Questions & Answers
1. Which financial ratio is most useful for comparing the cost-effectiveness of energy projects with different scales and lifetimes?
LCOE normalizes total lifecycle costs (capital + operating) by total lifetime energy output, enabling consistent comparison across projects of varying sizes and durations.
2. Net Present Value (NPV) in energy project evaluation accounts for which key factor that simple payback does not?
NPV discounts future cash flows back to present value, recognizing that a dollar saved today is worth more than a dollar saved in the future.
3. A company operating in multiple deregulated states should consider which procurement approach to maximize leverage?
Aggregating load across multiple sites into a single RFP increases the buyer's volume and attractiveness, driving more competitive supplier pricing.
4. A company pays $0.08/kWh for energy and $12/kW for demand. If monthly usage is 500,000 kWh and peak demand is 1,200 kW, what is the total monthly bill?
Total = (500,000 × $0.08) + (1,200 × $12) = $40,000 + $14,400 = $54,400.
5. What does 'swing' or 'tolerance' in a natural gas supply contract typically allow?
Swing provisions give the buyer operational flexibility to take more or less gas than the base nomination, within agreed percentage limits.
6. Under FERC Order 2000, which entity is responsible for independent transmission system operations in a region?
FERC Order 2000 encouraged the formation of RTOs to independently manage transmission grids and improve market efficiency.