Incentive-based regulation of utilities can play a strong role in encouraging innovation, improving states’ ability to achieve greater energy efficiency, and aligning utility and public policy interests. Yet the prevailing attitude of utility staff, Wall Street, and even the public can be hesitant when it comes to changing regulatory structures. In the last part of a four-part workshop for the New Jersey Board of Public Utilities, Richard Sedano and David Littell explore the constructs of outcome-based regulation, best practices for implementation, and the various options for linking utility activities to performance. Drawing on examples from Vermont, Michigan, Iowa, and the UK, they also highlight examples of outcome-based regulation.