Rich Sedano joined the National Governors Association Policy Academy to discuss how specific incentives directed at utility performance can increase the realization of public priorities. Performance regulation links some utility earnings to exemplary performance in important public policy matters, such as energy efficiency, reliability, or customer service. Mr. Sedano indicated that good metrics are measurable, under utility control, and relevant to public policy goals, and recommended that states utilize a collaborative process to establish metrics. As energy efficiency, distributed generation, and microgrid technologies continue to empower customers, a new utility regulatory model, built on service and public policy success, is needed.