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6049_decoupling_in_the_us_and_its_impact_on_cost_of_capital_and_profit.pdf
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🔗 Source: brattle.com
📊 Size: 1.04 MB
👤 Author: Marjorie Fischer
⬇️ Downloads: 45

Summary

Revenue decoupling is a rate-making policy that separates the direct link between sales volume and revenue, suitable for industries with predominantly fixed costs, eliminating the "through-put disincentive" for utilities to pursue energy efficiency programs and reducing the financial impact of declining sales. There are different types of decoupling, including true-up decoupling schemes, lost fixed revenue adjustment mechanisms (LRAMs), and fixed-variable rate design. In the US, various utilities in the same jurisdictions may have different mechanisms, with true-up revenue being the most common form of decoupling, and lost fixed revenue adjustment mechanisms being used fairly widely, often in combination with true-up mechanisms.

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Description

Revenue decoupling is a rate-making policy that separates the direct link between sales volume and revenue, suitable for industries with predominantly fixed...

Technical Information

  • File Format: PDF
  • File Size: 1.04 MB
  • Pages: 23
  • Language: EN
  • Author: Marjorie Fischer
  • Total Downloads: 45
  • Last Updated: 21 hours ago

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