Net Income Neutrality

{
  "id": "MLC-T-ENV-018453",
  "term": "Net Income Neutrality",
  "field": "Environment",
  "definition": "In the case of energy conservation measures undertaken by an investor-owned utility whose rates are regulated by a State utility regulatory authority, rates and charges established by the State utility regulatory authority that ensure that the net income earned by the utility on its State-jurisdictional equity investment will be no lower as a consequence of its expenditures on cost-effective qualified energy conservation measures and any associated lost sales than it would have been had the utility not made such expenditures, or that the State utility regulatory authority has implemented a ratemaking approach designed to meet this objective.",
  "references": [
    "40 CFR 72.2 (CFR 2013)"
  ],
  "url": "https://mlchart.com/terminology/environment/net-income-neutrality/"
}