March 29, 2017 | Advanced Energy Institute
Today, Advanced Energy Economy Institute (AEE Institute) issued a new report suggesting that performance-based regulation (PBR) can help Pennsylvania modernize electricity service, drive innovation, and deliver greater customer benefits.
Performance-based regulation (PBR) is a regulatory framework that attempts to align the behavior and financial interests of regulated utilities with public interest objectives and consumer benefits. It does so by rewarding utilities for achieving well-defined performance metrics (outputs), as opposed to providing incentives related primarily to capital investment (inputs). Continue reading.
The report, Performance-Based Regulation for Pennsylvania: An Opportunity for Pennsylvania to Drive Innovation in the Utility Sector, is available for direct download here.