Decoupling refers to a set of automatic or semiautomatic annual rate adjustments that separates utility revenues from sales. These revenue adjustment mechanisms compensate for increases and decreases in customer consumption due to unusual weather, economic downturns and energy efficiency. A variety of decoupling resources are provided below, including presentations, reports and state utility decoupling cases.
October 25, 2005
Presented for discussion at the Strategic Issues Forum meeting on Tuesday, Oct. 25, 2005. The whitepaper discusses the following questions:
What are the policy objectives of decoupling? Decoupling itself is a tool to achieve
one or more desired ends. The specific goals and objectives that proponents of
decoupling are trying to achieve need to be identified and developed.
What does decoupling mean? There are many ways of decoupling a utility's profits
from its sales, and there is a lot of experience in the U.S. with many of these methods.
Any particular decoupling proposal must be defined precisely in order to evaluate it.
What are the alternatives to decoupling? Decoupling is not the only way to increase
the amount of energy efficiency and distributed generation, and alternatives to
decoupling should be evaluated as part of any discussion on decoupling.
Developing a Distributed Resources Agenda for New Jersey
by Jim Torpey
Decoupling Symposium with DER Stakeholder Forum
New Approaches to Ratemaking
Performance Based Regulation (PBR): Decoupling Revenues from Rates
by Mike Ambrosio,
Center for Energy, Economic & Environmental Policy - Rutgers University
The Regulatory Assistance Project (RAP) is a non-profit organization formed in 1992 by experienced utility regulators that provides research, analysis and educational assistance to public officials on electric utility regulation. The RAP Decoupling page has links to presentations and studies on decoupling, barriers to distributed resources, and performance based ratemaking.
The American Gas Association (AGA), formed in 1918, represents 202 local energy companies that deliver natural gas throughout the United States. AGA advocates for member companies and their customers and provides a range of programs and services for the natural gas industry. The AGA Revenue Decoupling page has reports, maps and fact sheets on natural gas decoupling as well as a list of natural gas utilities that utilize decoupling and links to the utility board cases.
The American Council for an Energy-Efficient Economy (ACEEE), formed in 1980, is dedicated to advancing energy efficiency as a means of promoting economic prosperity, energy security and environmental protection. The ACEEE Utility-Sector Policies page contains state-by-state explanations of state decoupling status as well as energy efficiency policies, programs and funding.
American Recovery and Reinvestment Act of 2009
United States House of Representatives. 111th Congress, 1st session (2009)
Decoupling Policies: Options to Encourage Energy Efficiency Policies for Utilities
National Renewable Energy Laboratory (2009)
Regulatory and Ratemaking Issues Associated with Cost and Revenue Tracker Mechanisms
by David Dismukes
National Association of State Utility Consumer Advocates (November 17, 2009)
The Effect of Energy Efficiency Programs on Electric Revenue Requirements
American Public Power Association (August 2009)
Rethinking Rate Structures to Promote Energy Efficiency
American Gas Association (July 2009)
Rate Impacts and Key Design Elements of Gas and Electric Utility Decoupling: A Comprehensive Review
by Pamela Lesh
Washington Utilities and Transportation Commission (June 2009)
Decoupling Utility Sales from Revenues
by Richard Sedano, Richard
Kentucky Public Service Commission (9 April 2009)
Meeting Aggressive New State Goals for Utility-Sector Energy Efficiency: Examining Key Factors Associated with High Savings.
by Martin Kushler, Dan York and Patti White
American Council for an Energy-Efficient Economy (March 2009)
2008 Update of Revenue Decoupling Mechanisms
American Gas Association (July 2008)
Decoupling: Removing the Disincentive for Utilities to Invest in and Encourage Energy Efficiency
by Steve Weiss
NFFN/NLIEC Conference (June 18, 2008)
Revenue Decoupling: Standards and Criteria
A Report to the Minnesota Public Utilities Commission
by Wayne Shirley, Jim Lazar and Frederick Weston
Regulatory Assistance Project (June 2008)
AGA Response to ELCON 2007 Revenue Decoupling Policy Brief
American Gas Association (May 2008)
Decoupling Impacts on the Cost of Capital
by Jim Lazar
Minnesota Public Utilities Commission (April 15, 2008)
A Response to the NASUCA “Decoupling” Resolution
Maine Public Utilities Commission
Report on Revenue Decoupling for Transmission & Distribution Utilities (January 2008)
NASUCA Energy Conservation and Decoupling Resolution: Resolution 2007-01
National Association of State Utility Consumer Advocates (2007)
Revenue Decoupling: A Policy Brief of the Electricity Consumers Resource Council
Electric Consumers Resource Council (2007)
Advantages and Drawbacks of Revenue Decoupling: Rate Design and Regulatory Implementation Does Matter
by Paul Sotkiewicz
Florida Public Service Commission’s Workshop on Energy Efficiency Initiatives (November 29, 2007)
Decision-Making Strategies for Assessing Ratemaking Methods: The Case of Natural Gas
by Ken Costello
The National Regulatory Research Institute (September 2007)
Decoupling for Electric & Gas Utilities: Frequently Asked Questions
National Association of Regulatory Utility Commissioners (September 2007)
Policy Options for Energy Efficiency Programs: Decoupling, Incentives & Third-Party Administrators
by John Perkins
NARUC Summer Meeting (July 17, 2007)
Aligning Utility Interests with Energy Efficiency Objectives: A Review of Recent Efforts at Decoupling Performance Incentives
by Martin Kushler, Dan York and Patti Witte
American Council for an Energy-Efficient Economy (October 2006)
Utility Incentives for Demand Side Resources
Environmental Protection Agency
Clean Energy-Environment Guide to Action (April 2006)
Do Portfolio Managers have an Inherent Conflict of Interest with Energy Efficiency?
by Devra Bachrach, Sheryl Carter and Sarah Jaffe
The Electricity Journal (October 2004)
Joint Statement of the American Gas Association and Natural Resource Defense Council
Submitted to the National Association of Regulatory Utility Commissioners (July 2004).
Breaking the Consumption Habit: Ratemaking for Efficient Resources
by Sheryl Carter
The Electricity Journal (December 2001)
Follow-up to August 2, 2001 OPUC Workshop
by Sheryl Carter
Submitted to the Oregon Public Utility Commissioners (August 21, 2001).
Performance-Based Regulation in a Restructured Electricity Industry
by Synapse Energy for the National Association of Regulatory Utility Commissioners (November 1997).
Performance-Based Ratemaking for Electric Utilities: Review of Plans and Analysis of Economic and Resource-Planning Issues
Lawrence Berkeley National Laboratory (November 1995).
Decoupling and Public Utility Regulation
by Robert Graniere and Anthony Cooley
National Regulatory Research Institute (August 1994).
The Theory and Practice of Decoupling
by Joseph Eto, Steven Stoft, and Timothy Belden
Lawrence Berkeley Laboratory (January 1994).
- Pacificorp (Pacific Power and Light Company)
Public Utility Commission of Oregon Order 98-191