Advanced Energy Perspectives

Ryan Katofsky and Benjamin Stafford

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How Performance-Based Regulation Could Put Pennsylvania at the Forefront of a 21st Century Electricity System

Posted by Ryan Katofsky and Benjamin Stafford

Apr 13, 2017 2:26:47 PM

PA-PBR-future.jpg

The electricity sector is changing. New technologies are being integrated into the grid and installed behind customer meters, including a range of smart grid technologies, distributed generation, demand response, and energy efficiency. These same technologies are putting pressure on the traditional utility business model, which is focused on providing a regulated rate of return on capital investment. As a result, both utilities and regulators are looking for ways to modernize the regulatory framework to better align utility financial incentives with the changes taking place on the grid and with public policy goals. One way to do that is performance-based regulation (PBR). A new paper from AEE Institute explores the potential for Pennsylvania to benefit from PBR to deliver better service (and more options) for customers and greater economic development for the state.

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Topics: State Policy Update, 21st Century Electricity System

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