ScottMadden's View of Revenue Decoupling in the Gas Utility Industry
A brief presentation by ScottMadden consultants who are actively engaged in supporting clients with this most important issue: Ed Baker and Jason Davis
Continued high gas price levels and volatilitytogether with a long-term trend toward reduced consumptionhave gas utilities concerned about revenue and earnings reductions due to demand erosion. In response, utilities are exploring non-traditional rate making approaches designed to separate revenues from throughput changes. This decoupling approach would enable gas utilities to promote energy efficiency and conservation while recovering fixed costs. Conservationists and others are developing arguments against such fundamental changes in regulation.
This ScottMadden white paper is designed for those who would like an overview of this issue.