In 2007, the Minnesota legislature enacted a new statute, Section 216B.2412, in which it defined an alternative approach to utility regulation, decoupling, and directed the PublicUtilities Commission (PUC) to “establish criteria and standards” by which decoupling could be adopted for the state’s rate-regulated utilities.To fulfill its obligation to develop criteria and standards for decoupling, the PUC sought the advice of the Regulatory Assistance Project (RAP). This report is the output of that collaboration.