What is Revenue Decoupling and why is it being implemented now?
Revenue decoupling separates the link between the amount of revenue CenterPoint Energy collects from its customers and changes in the amount of natural gas they use. Revenue decoupling allows CenterPoint Energy to automatically adjust its rates for residential, commercial and small industrial customers once each year. These rate adjustments allow CenterPoint Energy to adjust its rates up or down each year to make up for any short fall or excess in sales revenue that is not due to weather. The purpose of revenue decoupling is to reduce CenterPoint Energy’s disincentive to promote energy conservation and energy efficiency. This rate adjustment appears on customer bills monthly beginning March 1, 2011 and is recalculated each March 1st thereafter.
