PBR regulates electric utilities to align profit motive with policy goals such as decarbonization and resilience. “Broadly speaking, PBR provides an alternative to the traditional ‘cost of service’ regulation by compensating utilities for how they perform rather than for selling more electricity or making new infrastructure investments,” according to the RMI, a non-profit group that supports decarbonization.
PBR has been authorized by law in six other states: Hawaii, Colorado, Illinois, Nevada, North Carolina and Washington, RMI said. States cite more than a dozen policy goals for PBR, with reliability, emissions reductions and cost control among the most common, RMI said.
