Renovate Best Regulatory Practice “Toolkit” Series: Performance-Based Regulation – Part 2

Renovate Best Regulatory Practice “Toolkit” Series: Performance-Based Regulation – Part 2

  • Practical guidance for regulators looking to address challenges of the changing electricity industry.
  • Curated practices and processes that can be adapted to all regulatory markets.

The Evolution of Performance-Based Regulation: A Model From A Traditional, Vertically Integrated Market.

When thinking about the application of performance-based regulation (PBR), most overlook traditional, vertically integrated markets like Minnesota. In this three-part series, SEPA dives into a case study of Minnesota’s proactive, stakeholder-driven process. Minnesota’s experience shows how a conversation about PBR does not require regulators and stakeholders to abandon existing cost-of-service-regulation (COSR) ratemaking practices.
This series gives regulators and their staff a roadmap that may inform how they proceed with performance-based regulation in their own jurisdiction.

What Is Covered In Part 2:

  • Using multi-year rate plans (MRP) as a stepping stone to performance-based regulation (PBR)
  • The usefulness of building on prior experience when considering regulatory change

Download Part 1 and Part 3

A Resource of the Renovate Initiative

This series is a part of the larger set of tools from the Renovate Initiative. This initiative helps commissions improve their regulatory process and foster innovation by addressing four obstacles: people and knowledge; managing risk and uncertainty; managing increased rate of change, and complexity of objectives. To learn more about the Renovate Initiative and its other tools, click here.

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