Investor Presentaiton
Decoupling mechanism
The decoupling mechanism is intended to allow recovery of margin lost due to a reduction in sales of
electricity resulting from customers' energy efficiency and conservation efforts.
This includes a Sales Normalization Adjustment (SNA) mechanism for residential and small nonresidential
customers (≤ 30 kW) and a Lost Revenue Recovery Adjustment (LRRA), for large nonresidential customers
(between 31 kW and 1 MWa).
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The SNA is based on the difference between actual, weather-adjusted usage per customer and that projected in
PGE's 2018 general rate case. The SNA mechanism applies to approximately 62% of 2018 base revenues
The LRRA is based on the difference between actual energy-efficiency savings (as reported by the ETO) and those
incorporated in the applicable load forecast. The LRRA mechanism applies to approximately 26% of 2018 base
revenues
In PGE's 2016 rate case, PGE and parties stipulated to the extension of the decoupling mechanism for
three years, through the end of 2019. In addition, the use-per-customer baseline was adjusted for new
connects with lower energy usage.
Recent Decoupling Results
(in millions)
Sales Normalization Adjustment
2014
2015
2016
2017
$(6.6)
$(8.8)
$1.9
$11.6
Lost Revenue Recovery Adjustment
$1.4
$(0.5)
$(0.8)
$(0.4)
Total adjustment
$(5.2)
$(9.3)
$1.1
$11.2
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Note: refund = (negative) / collection = positive
Portland General Electric
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