Many states are working on regulatory reforms focused on utility performance, but some compromise approaches may be self-defeating, performance-based regulation, or PBR, consultants said.
“A future power system that is affordable and optimally integrates clean energy requires changing the current incentives that reward utilities for spending,” said Strategen Consulting Managing Director, U.S. Consulting, Matt McDonnell, who helped lead Hawaii to the U.S.’s only full PBR implementation to date. “Recognition is emerging even in the utility industry of PBR as a solution to that spending bias.”
