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Traditional utility regulatory practices create an environment in which utilities earn more profit by selling more electricity. Revenue regulation, or decoupling, breaks the link between utility sales of electricity and revenues, while continuing to send customers economic price signals. These two principles are key to successful energy efficiency programs. Proper implementation of decoupling programs can help states eliminate the throughput incentive, meet efficiency objectives, and remove barriers to the adoption of clean, cost-effective resources.

In a webinar on September 11, 2014, Janine Migden-Ostrander and Dave Lamont explored different approaches to revenue regulation programs. Co-authors of the publication Decoupling Case Studies: Revenue Regulation Implementation in Six States, they share design and policy options for regulators and utilities considering revenue regulation mechanisms. Drawing on case studies from across the U.S., Ms. Migden-Ostrander and Mr. Lamont also highlight the importance of complementary policies for efficiency and distributed generation.