For more information, contact Dan Hansen.

Decoupling and Fixed-Cost Recovery

CA Energy Consulting is a national leader in confronting the business challenges that arise for traditionally-regulated utilities in an era of conservation, energy efficiency, and distributed generation. Utilities that ignore these trends may under-recover allowed revenue if its fixed costs are collected through volumetric ($/kWh or $/therm) rates. Regulators who do not adjust may unintentionally disincentivize their utilities’ conservation and energy efficiency programs, or foster cross subsidies by shifting revenue recovery from customers with distributed generation to those who do not.

Our staff has extensive experience in evaluating and implementing solutions to these problems, including,

• Revenue decoupling mechanisms;
• Straight-fixed variable (SFV) pricing;
• Energy block pricing;
• Distributed generation access charges;
• Buy all, sell all arrangements; and
• Lost revenue adjustment mechanisms.

We routinely conduct evaluations of revenue decoupling mechanisms and SFV pricing programs, assist utilities and regulators in evaluating alternative methods, and provide testimony regarding proposed revenue decoupling mechanisms.

For more information, contact Dan Hansen.