Publish Date: March 28, 2017
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).
This paper summarizes the collective thinking of an industry-based Working Group, facilitated by AEE Institute, that met over several months to develop recommendations regarding the potential for PBR in Pennsylvania.
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