Advanced technologies are unleashing the potential for change in power sectors around the globe, transforming the way electricity is generated, delivered, and consumed. These changes hold great promise for a better, cleaner, more reliable, and lower cost future. Whether the benefits are achieved will depend on reforming the regulatory approaches in order to align regulation’s inherent incentives with desired outcomes.
Performance-based regulation, or PBR, is a necessary tool for regulators and policymakers in this era of fundamental change. In the second part of a two-part webinar series, David Littell, Camille Kadoch, and Dr. Jan Rosenow explored PBR and how it can improve outcomes for utilities, customers, regulators, and society at large. They lay out the principles of successful—and not-so-successful—PBR efforts, and share considerations for regulators and policymakers contemplating PBR for better outcomes.