Funny, I was just going to post on how, in New York State, the new energy buzzword is “decoupling”. The newspapers report it with a straight face, but the truth is that, in the face of ever-greater political pressure to reward consumers for cutting back energy usage, the power companies are striking a deal to allow their revenues to increase while supplying less electricity.

For the generation side, it is brutal. The market / marginal price for power has plummeted and they are doing “economic stoppages” of coal plants where they don’t run them because of market conditions. You will see a serious shakeout in this type of generator should these low rates continue.

But generally for everyone in utility-land low demand causes less need for expansion which limits construction which also has a multiplier effect thru the community.

Besides industrial demand being down, a cool summer reduces consumption from air conditioning loads.

A regulated utility will make up a short year with what is called a balancing account. If sales don’t meet the expected amortization levels, the rates will recapture the missing moneys next year.