Three ways to decouple electric-utility revenues from sales

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Utility energy-efficiency programs hurt shareholders because these programs reduce electricity use, and this reduction lowers revenues by more than costs are cut. Utilities and their regulators have adopted various methods to deal with these net lost revenues. The two most widely used methods include explicit calculations of the revenues lost because of the energy and demand reductions caused by the utility`s programs, and decoupling of electric revenues from sales. Decoupling first breaks the link between utility revenues and sales. It then recouples revenues to something else. This paper explains and compares three forms of decoupling. We discuss the strengths and ... continued below

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11 p.

Creation Information

Hirst, E.; Blank, E. & Moskovitz, D. December 31, 1994.

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This report is part of the collection entitled: Office of Scientific & Technical Information Technical Reports and was provided by UNT Libraries Government Documents Department to Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 19 times . More information about this report can be viewed below.

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  • Hirst, E. Oak Ridge National Lab., TN (United States)
  • Blank, E. Land and Water Fund of the Rockies, Boulder, CO (United States)
  • Moskovitz, D. Regulatory Assistance Project, Gardiner, ME (United States)

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Description

Utility energy-efficiency programs hurt shareholders because these programs reduce electricity use, and this reduction lowers revenues by more than costs are cut. Utilities and their regulators have adopted various methods to deal with these net lost revenues. The two most widely used methods include explicit calculations of the revenues lost because of the energy and demand reductions caused by the utility`s programs, and decoupling of electric revenues from sales. Decoupling first breaks the link between utility revenues and sales. It then recouples revenues to something else. This paper explains and compares three forms of decoupling. We discuss the strengths and limitations of each approach, emphasizing the tradeoff between simplicity and price stability.

Physical Description

11 p.

Notes

OSTI as TI96009997

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  • 5. NARUC-DOE national conference on integrated resource planning, Kalispel, MT (United States), 15-18 May 1994

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  • Other: TI96009997
  • Report No.: CONF-9405119--1
  • Grant Number: AC05-84OR21400
  • DOI: 10.2172/237390 | External Link
  • Office of Scientific & Technical Information Report Number: 237390
  • Archival Resource Key: ark:/67531/metadc673300

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Office of Scientific & Technical Information Technical Reports

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Creation Date

  • December 31, 1994

Added to The UNT Digital Library

  • June 29, 2015, 9:42 p.m.

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  • Jan. 25, 2016, 5:06 p.m.

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Hirst, E.; Blank, E. & Moskovitz, D. Three ways to decouple electric-utility revenues from sales, report, December 31, 1994; Tennessee. (digital.library.unt.edu/ark:/67531/metadc673300/: accessed November 14, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.