Policy Profile

Decoupling

Policy description:

Decoupling of utility revenue from sales removes a disincentive for utilities to invest in energy efficiency. Broadly, decoupling refers to a process by which a utility commission grants a utility a level of return on equity that is not dependent on volumetric sales. For more information, see the full policy brief.

Download Full Policy Brief View Policy Component Questions

  1. Does the state allow revenue decoupling or an lost revenue adjustment mechanism for natural gas utilities?
  2. Does the state allow revenue decoupling or an lost revenue adjustment mechanism for electric utilities?
  3. Is the state considering decoupling for at least one utility type?
  4. Does state allow utilities to recover the costs of efficiency programs?
  5. Does the state provide some sort of efficiency performance incentive to utilities?