Performance-Based Regulation to Improve Upstream Energy Efficiency

Author: Benjamin Mandel

2014_Mandel_PBR to improve upstream energy efficiency_Page_01Traditional 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.