Impact of decoupling on cost of capital

On several occasions from 2011 to present, Brattle experts have reviewed statistical evidence for whether decoupling or other lost revenue recovery mechanisms have a discernable downward effect on the utility cost of capital. Those studies have repeatedly found there is no such reliable effect, probably because decoupling is introduced only in situations where revenue recovery risk has already increased. Hence, even though decoupling offsets some of this risk, there is no net effect.