The distribution of U.S. electric utility revenue decoupling rate impacts from 2005 to 2017

Electric utilities have historically relied on volumetric energy rates. Reductions in sales can have an adverse effect on a utility's ability to sufficiently recover its costs. Decoupling mechanisms, when properly designed, diminish the link between revenues and sales. Additionally, analysis of...

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Bibliographic Details
Published in:The Electricity journal 2020-12, Vol.33 (10)
Main Authors: Cappers, Peter A., Satchwell, Andrew J., Dupuy, Max, Linvill, Carl
Format: Article
Language:English
Subjects:
distributed energy resource
electric utility
ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
energy efficiency
retail rate
Revenue decoupling
utility regulation
Online Access:Get full text
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Summary:Electric utilities have historically relied on volumetric energy rates. Reductions in sales can have an adverse effect on a utility's ability to sufficiently recover its costs. Decoupling mechanisms, when properly designed, diminish the link between revenues and sales. Additionally, analysis of annual rate adjustments from decoupling mechanisms indicate the majority of those adjustments are small. However, once a surcharge is applied there is an 86 percent chance there will be a surcharge in the next year.
ISSN:1040-6190
1873-6874