CenterPoint Energy: New full revenue decoupling pilot program start July 1

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CenterPoint Energy: New full revenue decoupling pilot program start July 1

July 1, 2015

Decoupled rates approved in 2013 rate case

In August 2013, CenterPoint Energy filed a request, called a rate case, with the Minnesota Public Utilities Commission (MPUC) to change its rates for utility distribution service. The final rates approved by the MPUC included a new three-year pilot program for full revenue decoupling to begin July 2015 with annual revenue decoupling adjustments on customers' bills starting in fall 2016.

 

Revenue decoupling is a regulatory tool designed to separate a utility’s revenue from changes in energy sales. Revenue decoupling provides for adjusting a utility’s rates periodically to provide a mechanism to recover certain revenues independent of the amount of energy sold.

 

Checks and balances

The MPUC put a cap on the amount that CenterPoint Energy can surcharge customers in years where the approved rate case revenue was not achieved. The surcharge is capped at 10 percent of the utility’s non-gas commodity costs, which is equal to approximately 3 to 4 percent of your total bill. Under the decoupling pilot, there is no cap on the amount that CenterPoint Energy must refund customers in years where the company recovers more than the rate case approved revenue.

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