Revenue Regulation and Decoupling: A Guide to Theory and Application
This guide was prepared to assist anyone who needs to understand both the mechanics of a regulatory tool known as decoupling and the policy issues associated with its use. This would include public utility commissioners and staff, utility management, advocates and others with a stake in the regulated energy system. While this guide is somewhat technical at points, we have tried to make it accessible to a broad audience, to make comprehensible the underlying concepts and the implications of different design choices. This guide includes a detailed case study that demonstrates the impacts of decoupling using different pricing structures (rate designs) and usage patterns.
In 2016, this guide was updated to include a subsequent work, Decoupling Case Studies: Revenue Regulation Implementation in Six States, which examines the details of decoupling regimes put in place for utilities in California, Idaho, Maryland, Wisconsin, Massachusetts, and Hawaii.