Utility Decoupling: Montana Utility Pros and Cons
Northwestern Energy experts consider the utility’s current business model ineffective in the changing energy market and encouraged implementation of full decoupling
Decoupling policy separates a regulated utility’s profits from its total electric or gas sales so a utility is not incentivized to sell more electricity or gas. The implementation of decoupling policy is most often discussed by the commissions that regulate utilities and often in terms of ratemaking. The policy is a mechanism to encourage regulated utilities to support energy efficiency, but it is not a tool for increasing energy efficiency. Instead, it is a ratemaking mechanism that removes what can be seen as a utility’s incentive to discourage energy efficiency.
North Americans consume six times as much energy as the average global consumer, according to Bradley Layton, CEO of Human Powered Future. It’s an unsustainable trajectory with an uncertain future.
The landmark rules will require that by 2035 carmakers must achieve a 100% cut in CO2 emissions from new cars sold, which would make it impossible to sell new fossil fuel-powered vehicles in the 27-country bloc.