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the-theory-and-practice-of-decoupling-utility-revenues-from-sales.pdf
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🔗 Source: eta-publications.lbl.gov
📊 Size: 1.12 MB
📄 Pages: 13 pages
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Summary

Decoupling has emerged in the US as a regulatory strategy to insulate utility revenues from sales fluctuations, aiming to transform utilities from energy commodity sellers to energy service providers. The approach involves automatic or semi-automatic annual rate-making adjustments to ensure utilities collect a set level of revenues, independent of actual sales. This is intended to mitigate the disincentive for utilities to reduce sales, such as through energy-efficiency programs, which can conflict with their financial interests under traditional rate-of-return regulation. The paper examines the cost and regulatory conditions underlying decoupling, its applicability to other regulated utilities, and reports on the actual rate impacts of decoupling in three US utilities with the longest history of decoupling.

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Decoupling has emerged in the US as a regulatory strategy to insulate utility revenues from sales fluctuations, aiming to transform utilities from energy...

Technical Information

  • File Format: PDF
  • File Size: 1.12 MB
  • Pages: 13
  • Language: EN
  • Total Downloads: 77
  • Last Updated: 1 month ago

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