State Policy Description
Policy Components Questions
- 1. Does the state allow revenue decoupling or a lost revenue adjustment mechanism for natural gas utilities? No
- 2. Does the state allow revenue decoupling or a lost revenue adjustment mechanism for electric utilities? Yes
- 3. Does the state provide some sort of performance incentive to utilities for exceeding efficiency goals or a penalty for not achieving goals? Yes
- 4. Does the state allow utilities to recover the costs of their energy efficiency programs? Yes
- 5. Is a third party responsible for the evaluation, measurement, and verification of energy efficiency programs? Yes
Policy Component information last updated July 02 2021
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 on the components of the policy see the full policy brief.
For more information on the components of the policy see the full policy brief.