Decoupling Mechanism Design in Nevada

Sierra Club
Project completed 2014

Synapse assisted the Sierra Club in providing comments regarding alternatives to Nevada’s Lost Revenue Adjustment Mechanism (LRAM) for demand side management programs. Synapse developed comments contrasting the LRAM to full decoupling, and discussing key design considerations for full revenue decoupling mechanisms, including establishing appropriate revenue targets, appropriate schedules for making decoupling adjustments, caps on decoupling adjustments, return on equity reductions, and utility commitments related to energy efficiency and distributed generation.