Author: Benjamin Mandel
Traditional utility regulation provides inadequate incentives for electric utilities to invest in technologies that reduce network energy losses. This article examines how alternative regulatory designs influence such investments, and simulates the procurement and performance of distribution transformers under differing regulatory scenarios, to demonstrate the enormous potential benefits of a performance-based regulation scheme that targets network losses.
This article is featured in a special issue of The Electricity Journal for the Energy Policy Institute’s Fourth Annual Energy Policy Research Conference. Click here to view and download the article.