Author: Benjamin Mandel
The composition of utility revenues under performance-based regulation depends on the approach used to set base revenue allowances and the magnitude of financial
performance incentives. For the most policy-responsive regime, regulators should pursue ‘integrated PBR’ by both broadening the set of performance incentives they offer and embracing benchmarking for base revenue allowances.
This article, based on an earlier Guarini Center policy brief, leads off the May 2015 issue of The Electricity Journal. Click here for full access to the journal article through Science Direct until 7/11/2015.