Performance Based Ratemaking and Decoupling 
Performance Based Ratemaking and Decoupling
by UC Berkeley / Steve Weissman
Video Lecture 11 of 15
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Date Added: November 28, 2009

Lecture Description

April 3, 2008

In this video lecture, Prof. Steve Weissman discusses the following topics:

Under traditional ratemaking, utilities generally make higher profits if they sell more power and lose profits as customers become more efficient. Performance-based ratemaking can address the problem of utility disincentives to promote customer energy efficiency by decoupling utility profits from the amount of sales. It also is a mechanism that can encourage beneficial behavior in many areas of utility operation. Also, introduction to integrated resource planning and portfolio planning for the right mix of generation types, transmission and conservation. Portfolio Management (PM) and Integrated Resource Planning (IRP) both constitute planning exercises and present similar issues. PM, a newer term, focuses on a single utility or other load serving entity. IRP can be performed by a state regulator on a system wide, regional or service area basis, or by a utility for its service area.

The original name of this video lecture is: Performance Based Ratemaking and Decoupling, Integrated Resource Planning and Portfolio Planning.

Course Index

Course Description

In this course, Prof. Steve Weissman gives 15 video lectures on Energy Regulations and the Environment. This course introduces students to the legal, economic, and structural issues that both shape our energy practices and provide opportunities to overcome these critical problems. The course focuses primarily on the regulation and design of electricity systems and markets, since so many energy choices—the use of oil, natural gas, coal, nuclear, the green alternatives such as solar, wind, and energy conservation or “demand side management”— relate to the way we generate or deliver electricity, or avoid the need to do so.



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