This report, the first of three volumes of Next-Generation Performance-Based Regulation: Emphasizing Utility Performance to Unleash Power Sector Innovation, examines the concept of performance-based regulation (PBR) and how it can provide a framework to connect goals, targets, and measures to utility performance or executive compensation. It examines leading examples of PBR from around the world,…
This report, the second of three volumes of Next-Generation Performance-Based Regulation: Emphasizing Utility Performance to Unleash Power Sector Innovation, focuses on best practices for design, development, and implementation of performance-based regulation mechanisms. It begins by laying the groundwork for understanding the incentives inherent in institutional arrangements, especially utility composition and ownership structure. It then builds…
This report, the final of three volumes of Next-Generation Performance-Based Regulation: Emphasizing Utility Performance to Unleash Power Sector Innovation, focuses on how performance-based regulation (PBR) can be used to navigate an era of rapid technological change in the power sector. It examines the trends seen in this rapid change, including the penetration of disruptive technologies,…
Performance-based regulation (PBR) enables regulators to reform 100-year-old regulatory structures to unleash innovations within 21st century power systems. Our current electric system is built upon an old regulatory paradigm that ensured safe and reliable electricity at reasonable prices from capital-intensive electricity monopolies. Today, disruptive technologies are changing the way we interact with the electric grid,…
