As US power grid costs rise and the length of outages increases, risk-aware regulation—an approach in which regulators explicitly and proactively seek to identify, understand, and minimize the risks associated with electric utility resource investment, will lead to the efficient deployment of utility resources, the continued financial health of utilities, and the confidence and satisfaction of the customers on whose behalf utilities invest. As RAP principal Rich Sedano notes in, “US power grid costs rise, but service slips,” utilities and regulators gravitate towards tried and true technology and are generally risk-averse. Risk aware regulation offers an approach that balances both the costs and risk associated with new utility investments to minimize overall long term costs, while delivering reliable power. Strategies such as redesigning utility rates to reward performance (shorter or fewer outages) and the delivery of energy services, such as energy efficiency, instead of linking utility profits to infrastructure investments are critical. “Practicing Risk-Aware Regulation: What Every State Regulator Needs to Know,” a joint effort between RAP and Ceres, recommends seven strategies to minimize risk and lower utility costs.