Weighing decoupling vs. lost revenues: Regulatory considerations

Journal Article · Sun Nov 01 00:00:00 EST 1992 · Electricity Journal; (United States)

DOI:https://doi.org/10.1016/1040-6190(92)90096-P· OSTI ID:6958539

Moskovitz, D; Harrington, C; Austin, T

In 1989 a resolution adopted by the National Association of Regulatory Utility Commissioners expressly recognized that utilities lose revenues and profits when they or their customers invest in cost-effective energy efficiency. NARUC called for reform of regulation so that the successful implementation of a utility's least-cost plan was also its most profitable course of action. NARUC said that regulation should align the utility's financial interest with the interests of its customers. Much of the effort to align utility shareholders' financial interests with the goals of least-cost planning has focused on the removal of the potent disincentives to energy efficiency created by the current ratesetting process. Decoupling and lost revenue recovery are the two general approaches used to eliminate the disincentives. This paper discusses the important characteristics and distinctions between the two options. 1 tab.

• OSTI ID: 6958539
• Journal Information: Electricity Journal; (United States), Vol. 5:9; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
99 GENERAL AND MISCELLANEOUS//MATHEMATICS, COMPUTING, AND INFORMATION SCIENCE
ELECTRIC UTILITIES
RATE STRUCTURE
REGULATIONS
COMPARATIVE EVALUATIONS
COST
DECOUPLING
ECONOMIC ANALYSIS
ENERGY EFFICIENCY
MANAGEMENT
ECONOMICS
EFFICIENCY
EVALUATION
PUBLIC UTILITIES
296000* - Energy Planning & Policy- Electric Power
990100 - Management