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home | Decoupling utility firms

Decoupling utility firms

A regulatory concept that disconnects utility financial gains from the sale of energy by creating financial rewards for utility shareholders when the utility firm meets preset service and reliability goals. Beloved by some big IOUs that find it a more stable strategy for making a profit. Beloved by energy retailers that see it as a good model for utility firms in deregulated states. It is a smart grid issue because smart grid helps decoupled firms meet their goals and it helps retailers serve value-added services to their customers.

Wellinghoff urges creation of distribution ISOs
March 17, 2015 -- EXCLUSIVE INTERVIEW -- IOUs would own grid, maintain it but not run it: In retail markets, grid ownership and operation should be separated to allow competitive energy sales, Jon Wellinghoff, former chairman of FERC, told us recently in an exclusive interview . . . keep reading
Colorado bill would help state modernize utility rate structure
March 13, 2015 -- The Colorado General Assembly is considering a bill to order the state's PUC to explore alternative utility revenue models -- according to the bill that was posted on its website. HB 15-1250, declares that certain factors other than short-term economic costs deserve . . . keep reading
Northwestern Energy seeks net metering changes
February 5, 2015 -- IOU challenged state bills, invites study, decoupling: After opposing a group of net-metering bills Montana legislators introduced last month, Northwestern Energy wants the state legislature to do a legislative study on net metering programs in the state, Butch Larcombe . . . keep reading
NextEra, HECO ask PUC to OK merger plan
February 3, 2015 -- Under a proposed merger with NextEra Energy that was announced Dec 3, Hawaiian Electric (HECO) pledged it will not seek any general base-rate increases for at least four years after the merger, the two energy firms said in filing an application yesterday for the Hawaiian PUC's . . . keep reading
E21 expands smart grid regulatory-reform efforts
January 13, 2015 -- EXCLUSIVE INTERVIEW -- Group's president describes multiple initiatives: The E21 Initiative, an energy industry collaboration formed under the umbrella of the Great Plains Institute, will be starting phase two of its stakeholder process next month, E21 President Rolf . . . keep reading
Michigan decoupling ends with 2 settlement deals
July 11, 2014 - Experts explain why killing decoupling is a mistake: Experts explain why killing decoupling is a mistake - The Michigan PSC approved two settlement deals Tuesday, reconciling Upper Peninsula Power's (UPP) 2013 revenue decoupling mechanism (RDM) . . . keep reading
ACEEE report argues against so-called utility 'death spiral'
June 16, 2014 - The American Council for an Energy Efficiency Economy (ACEEE) released a paper last week arguing utilities do not have to fear the so-called "death spiral" of shrinking power use and growing DG. The report, titled "The Future of the Utility Industry and the Role of Energy Efficiency . . . keep reading
Xcel in Minnesota, Connecticut, others support decoupling
May 9, 2014 - Linked to conservation, utilities warm to guaranteed revenue: Two municipal utilities in California that were the first such utilities to adopt decoupling, last year and the year before respectively, were not alone in seeing the benefits of the regulatory model that . . . keep reading
Glendale, LADWP describe why municipals picked decoupling
May 6, 2014 - EXCLUSIVE INTERVIEW -- Part 1 in a 2-part series on decoupling: Electric utility decoupling has been traditionally slow to catch on, though it solves a distinct revenue problem for utilities under pressure to adopt energy efficiency and conservation programs. That said . . . keep reading
Policy expert cautions utilities on DG's financial challenges
October 28, 2013 -

Utilities ignore the threat DG poses to their business model at their own peril, David Shuford, VP of policy and business evaluation at Dominion Resources Services, said last week at an industry conference hosted by the Energy Bar Assn in Washington, DC. "You could wind up as a utility in this so-called 'death spiral' where you are chasing an ever-shrinking customer base to pay for an infrastructure that was built for a larger customer base . . . keep reading

NRDC, Commonwealth Edison discuss benefits of decoupling
October 18, 2013 -

One of the major barriers to rolling out more energy efficiency is how utilities are paid but disagreement exists on how to fix that, NRDC Energy Program Co-Director Ralph Cavanagh and Commonwealth Edison Senior VP of Customer Operations Val Jensen said at the National Summit on Integrating Energy Efficiency & Smart Grid this week. They both believe the prevalent system needs to change, they added . . . keep reading

Microgrid market to boom despite drop-off in DOD funds
May 1, 2013 -

The US microgrid market will thrive over the next several years despite DOD investment in the sector drying up, Kurt Yeager, vice chairman of the nonprofit Galvin Electricity Initiative, told us yesterday . . . keep reading

ISIOGU: Regulators, not courts, are in best position to regulate
March 25, 2013 - State regulators -- not state courts -- are in the best position to regulate utility investments in the modern grid, Michigan PSC Commissioner Orjiakor Isiogu told us recently. Meanwhile, a fight continued over a state appeals-court ruling that the PSC erred in approving a rate increase for Detroit Edison (DTE) . . . keep reading
Yeager, SDG&E CEO Niggli laud multiple benefits of decoupling
March 20, 2013 -

San Diego Gas & Electric (SDG&E) is "far, far ahead" of its fellow IOUs in selling power at performance-based rates, Kurt Yeager, vice chairman of the nonprofit Galvin Electricity Initiative, told us on the sidelines of the EnergyBiz Leadership Forum in Washington, DC, yesterday . . . keep reading

New Mexico commissioners consider decoupling
September 10, 2012 - EXCLUSIVE INTERVIEW: The New Mexico Public Regulation Commission (PRC) is working on trying to implement decoupling, despite Public Service Co of New Mexico's (PNM) having Ã? . . . keep reading
Despite court order against it, Detroit Edison rolls out AMI
September 6, 2012 - Decoupling hopes believed dead for all Michigan IOUs: Despite an April court ruling against it, an AMI program by Detroit Edison is proceeding, Scott Simons, a spokesperson for that Ã? . . . keep reading
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