Damned if you do?

From a brochure I received from Xcel Energy:

"Xcel Energy is also requesting a new rate adjustment for residential customers called a "revenue decoupling mechanism." If approved, "decoupling" will keep Xcel Energy's earnings stable. Xcel Energy believes its sales revenue is decreasing because of lower natural gas use per residential customer. Xcel Energy believes the decrease is due to changes in the cost of natural gas, the use of energy efficient appliances, improvements in new housing construction, and increases in the number of multi-unit housing arrangements. If it's "decoupling" proposal is approved, Xcel Energy will adjust its rates up or down each year to make up for any shortfall or excess in sales revenue that is not due to the weather."(latter emphases mine)

Okay--let me get this straight. For years now, Xcel energy has been harping on its customers to buy more energy efficient appliances, better insulate our homes, turn down thermostats, all in the name of not only saving energy, but of saving money. So we buy their line. We buy more efficient appliances. We insulate our homes and buy expensive energy-efficient windows. We do a helluva job conserving energy to the point where their natural gas sales are down, and their revenue is decreased. So they're going to reward their customers for helping them, by inflating the rates that they charge for using less gas?

Correct me if I'm wrong, but if demand for a product goes down, shouldn't prices go down along with demand? Not only that, but if they're selling and producing less product, wouldn't their overhead to extract and transport same decrease, as well? One would think that the next step in the progression would be to lay off workers that aren't needed due to the decrease in demand.

I don't know--perhaps a greater economic mind than mine needs to look into this.

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Update: The greater mind did.

Thanks, King.
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***UPDATE 8/21/07****

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