RE:RE:RE:RE:Heating Days for 1stQTR 2021Capharnaum wrote: GunnerG wrote: Capharnaum, care to explain the decoupling mechanism to those who are new to utilities?
Decoupling is basically reducing the effect of number of customers and volumes on revenues. It's a general movement in gas utilities as the growth rate for the plant value slows down. It increases stability in earnings and reduces swings both on the upside and downside due to weather and the level of plant growth.
Just to add that if you look at Altagas' latest presentation (March 3), you'll find a mention about "decoupled rate structure" in Maryland and Virginia with fixed rates protecting 70% of revenue on slide 5.
This would go with my estimate that a 9% change in heating days would only lead to a 2-3% change in revenue.