Performance Based Regulation for Utilities and Stakeholders

Performance Based Regulation for Utilities and Stakeholders

March 3, 2022 | Online :: Central Time

“This course was relevant and thought provoking. Time very well spent!” – Manager, Rates and Finance, BC Hydro

“EUCI created a great and informative program which greatly improved my knowledge of PBR. I will be back.” – Associate General Counsel, Pepco Holdings Inc.

“Great speakers, thorough coverage of topics, knowledgeable presenters.” – Staff Rate Analyst, PSE&G

The way we generate, distribute, consume, and pay for power today has been slowly evolving over the past decades. 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. As a result, multiple are looking at alternative ratemaking approaches, including performance-based regulation (PBR), to incentivize utilities to respond to changing customer needs, encourage consideration of third-party options, reduce the frequency of rate cases, 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 include updates to show the momentum of PBR across North America and where individual states are regarding implementing or pursuing PBR. Several utility case studies will be shared in this event as well.

Learning Outcomes

  • Explore the principles of sound rate-making and regulatory objectives
  • Discuss the current environment of accommodating distributed energy, which is prompting the need for change
  • Identify why some regulators are looking at new PBR-like mechanisms because of these changing needs
  • Discuss the elements of a successful performance-based ratemaking mechanisms
  • Review alternative rate-making mechanisms
  • Discuss the elements of a successful PBR mechanism
  • List the steps and options for implementation
  • Review relevant case studies


Thursday, March 3, 2022 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:30 – 1:15 p.m.
Lunch Break

9:00 a.m. – 4:30 p.m.
Course Timing


I. Introductions

IA. Opening Address: Regulatory Perspective

Katie Sieben, Chair, Minnesota Public Utilities Commission

II. Principles of Sound Ratemaking and Regulatory Objectives

  1. Stakeholder interests and perspectives
  2. Ratemaking principles and regulatory objectives in the context of a changing paradigm

III. Overview of Traditional Cost-of-Service (COS) Ratemaking

  1. Pros and cons

IV. Current Environment – What is Prompting the Need for Change?

  1. Consumer preferences are changing; to incentivize utilities to respond to these changing needs, some regulators are looking at new PBR-like mechanisms
    • These will likely include new metrics, including sustainability, promotion of interconnection, and in some cases inclusion of local labor workforces
    • Increasingly, utilities will need to further demonstrate that capital investments have had a positive impact on customers, beyond traditional reliability measures
  2. New policy priorities/directives

V. Overview of Alternative Ratemaking Mechanisms

  1. Alternative rate-making mechanisms fall along a spectrum from “incremental” to “comprehensive”
  2. Strengths and weaknesses of specific alternative ratemaking mechanisms

VI. What is PBR and in What Ways it is Different from Traditional Ratemaking?

  1. History
    • Original concept
    • Modifications over time
    • Lessons learned — what has worked and what hasn’t work
    • States where concept is being evaluated
  2. Types
    • Performance incentive mechanisms (PIMs)
      • Effective PIMs
      • Non effective PIMs
    • Price cap
    • Revenue cap
    • Benchmarking
    • “Menu of options”
    • Pros and cons of each
    • Decoupling

VII. Elements of a Successful PBR Mechanism

  1. Identify goals & objectives
  2. Identify outputs and outcomes
    • Quantifiable and measurable metrics
    • Examples of metrics
  3. Aligning stakeholder interests

VIII. Steps and Options for Implementation

  1. Design elements
  2. Design considerations

IX. Breakout Session

  1. Interactive session for participants to co-design PBR mechanisms from the perspective of different stakeholders

X. Case Studies

  1. Examples of PBR in different jurisdictions
    • Regulatory process design
    • Priority outcomes and guiding principles
    • What has worked well and what hasn’t

XI. Conclusions & Takeaways


Rick Starkweather, Partner, ScottMadden, Inc.

Rick Starkweather has been a management consultant for over 30 years and is a leader in ScottMadden’s regulatory practice. His areas of expertise include strategic and business planning, budgeting and forecasting, regulatory compliance and rate case support, and organizational and operations improvement. Prior to joining ScottMadden, he was a consultant with Deloitte Consulting. He also has experience in the healthcare and chemical industries and helped lead the start-up of two companies. Mr. Starkweather received a B.S. in mechanical engineering from Northwestern University and an M.B.A. from the University of Chicago Graduate School of Business. He is also a Certified Measurement and Verification Professional (CMVP) and Certified Energy Auditor (CEA) through the Association of Energy Engineers.

Mark Meitzen, PhD Senior Consultant, Christensen Associates

Mark Meitzen, PhD (University of Wisconsin–Madison) is a Senior Consultant at Christensen Associates, where he has been employed since 1990. He is currently serving as principal investigator on NCFRP24, Preserving and Protecting Freight Infrastructure and Routes.  Dr. Meitzen was a principal author of the November 2008 Christensen Associates’ study of the U.S. freight railroad industry commissioned by the Surface Transportation Board. He was also the project manager and one of the principal authors of Christensen Associates’ supplemental report to the STB on railroad capacity and investment issues. Dr. Meitzen has expertise in the economic analysis of network industries including telecommunications, railroad, electricity and postal. In addition to the recent STB study, his work in the railroad industry includes analysis of railroad mergers and application of the STB’s Constrained Market Pricing standards, including its Stand-Alone Cost methodology.    He also serves as an economic expert in regulatory proceedings on incentive regulation, pricing, and economic costing matters. Prior to joining Christensen Associates, Dr. Meitzen was a corporate economist at Southwestern Bell Telephone Company and was an assistant professor of economics at Eastern Michigan University and the University of Wisconsin-Milwaukee.

Nick Crowley, Economist, Christensen Associates

Nicholas Crowley, MS (University of Wisconsin–Madison) is an Economist at Christensen Associates.  His professional work is primarily with natural gas pipeline and electricity regulation, including wholesale and retail markets. For electricity, he has participated in numerous costing and pricing projects, which involve computational analytics and econometrics, performance-based ratemaking, marginal cost estimation, total factor productivity estimates, and load response with respect to efficient time-of-use tariff options within retail markets. Mr. Crowley’s analyses and study results have been summarized in major reports and formal studies filed with regulatory authorities in Canada and the U.S. Prior to joining CA Energy Consulting,  he served as an economist with the Federal Energy Regulatory Commission, where his work experience was concentrated in natural gas pipeline regulation and assessment of electricity markets. Mr. Crowley was also involved in FERC’s performance-based regulation of oil pipeline rates.

Cara Goldenberg, Manager, Rocky Mountain Institute (RMI)

Cara is a Manager on RMI’s Carbon-Free Electricity Team where she works directly with Public Utilities Commissions and other stakeholders on regulatory reforms and changes to the utility business model needed to support the integration of clean and distributed energy resources. She is the co-author of various RMI reports focused on performance-based regulation, regulatory process design, and demand flexibility. Before joining RMI, Cara received a Master’s in Public Affairs at Princeton University. Prior to Princeton, Cara worked at Dian Grueneich Consulting where her work focused on analyzing state and regional clean energy policies and regulations.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.


Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Event Standard RateAttendees
Single Seat - Performance Based Regulation for Utilities and StakeholdersUS $ 895.00
Pack of 5 SeatsUS $ 3,580.00
Pack of 10 SeatsUS $ 6,265.00
Pack of 20 SeatsUS $ 10,740.00
Call us at 303.770.8800 if you have any specific questions on the volume discounts
* all other discounts do not apply to seat packs

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Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before January 28, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.7 CEUs for this event.

Requirements for Successful Completion of Program

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

Case Studies and PowerPoint presentations

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 8.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Beginner/Intermediate
Delivery Method: Group-Live presented online due to COVID-19
Advanced Preparation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit.



Who Should Attend

This conference was developed for:

  • Utility executives
  • Corporate communication professionals
  • Contact center management professionals
  • Commissioners
  • Commission staff
  • Attorneys
  • Regulatory affairs managers
  • Pricing and load research managers
  • Customer representatives and organizations
  • Cost of service analysts
  • Financial analysts
  • Rate design, product development and customer strategy professionals