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Pennsylvania State Lawmaker Proposes Bill Allowing Revenue Decoupling For Electric Utilities Implementing Efficiency Plans

Pennsylvania House lawmaker Christopher Quinn, a Republican, introduced legislation on Sept. 24 that would allow electric distribution companies to use a revenue decoupling mechanism to recover decreased revenues due to lower energy consumption or demand changes. The bill would limit upward adjustments through the mechanism to two percent of rates. The legislation would also allow financing incentives for energy efficiency plans of distribution companies based on the achievement of energy savings and peak demand reduction goals set by the commission. The incentives would be limited to 10 percent of customer benefits or eight percent of utility expenses resulting from the efficiency measures for the year. Revenue decoupling disconnects sales and profits so as to eliminate the potential for revenue losses that may result from utility deployment of distributed energy resources and removes financial disincentives to invest in conservation programs. (HB 2662)

September 24, 2018
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