The way we generate, distribute, consume, and pay for power today has been slowly evolving over the past decade. Customers are generating some of their own power, advanced metering structures allow for more sophisticated rate design, and large industrials—and even some residential customers—can actively adjust their demand in reaction to price signals and peak events. Utilities, for their part, continue to look for ways to recover enough revenue to provide a reasonable return for shareholders. Many utilities are looking at alternative ratemaking approaches, including performance-based regulation (PBR), to respond to changing customer needs and decouple cost considerations from load changes.
This course on PBR will examine the principles of sound ratemaking, how regulatory objectives can impact the various alternatives, and elements of successful PBR mechanisms. The course will show the momentum of PBR across North America and where individual states are implementing or pursuing PBR. A regulatory perspective and several utility case studies including success at Hawaiian Electric (HECO) will be shared in this event.