Decoupling for Sustainability
Decoupled rates approved for Minnesota customers
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 3-year pilot program for full revenue decoupling that began in July with annual revenue decoupling adjustments on customers’ bills starting in fall 2016. The MPUC plans to evaluate the decoupling pilot program on an annual basis. The new approved gas rate design, known as revenue decoupling, breaks the link between the amount of natural gas that customers use and CenterPoint Energy’s recovery of money needed to maintain services. Consequently, CenterPoint will no longer lose revenue by helping its customers reduce energy, allowing the company to continue to work hard to help our customers save energy and money and reduce our carbon footprint. Customers who use less gas will save on their overall bill because the wholesale commodity of natural gas makes up 50-60 percent of the bill.
CenterPoint Energy revenue decoupling timeline
- The Minnesota Public Utilities Commission (MPUC) approved the new 3-year full revenue decoupling pilot program in CenterPoint Energy’s last rate case in 2014.
- CenterPoint Energy had a previous partial decoupling pilot program, which began in 2010 and ended in early 2015.
- CenterPoint Energy’s new full
revenue decoupling pilot program started in July 2015.
- The first full decoupling rate adjustment began on customer billing September 2016.