Decoupling Case Studies: Revenue Regulation Implementation in Six States
This paper examines revenue regulation, popularly known as decoupling, and the various elements of revenue regulation that can be assembled in numerous ways based on state priorities and preferences to eliminate the throughput incentive. This publication focuses on six utilities: Pacific Gas and Electric Company, Idaho Power Company, Baltimore Gas and Electric Company, Wisconsin Public Service Company, National Grid – Massachusetts, and Hawaiian Electric Company, and the different forms of revenue regulation their regulators have implemented. These examples examine the details of revenue regulation and provide a range of options on how to implement revenue regulation. These specific utilities were chosen in order to represent a range of mechanisms used throughout the US and to contrast differences to provide a broader overview of the options available in designing decoupling mechanisms and to describe how they have worked to assist state regulators and utilities considering implementing revenue regulation.