A brief history and status report on performance-based ratemaking
- AUC Management Consultants, Vancouver, WA (United States)
In recent years, `performance-based` regulation has been one of a number of terms used interchangeably to describe the transformation from Rate of Return (ROR) regulation to a broader concept of price control and incentives. However, it is believed that PBR is distinct from the generic `alternative regulation` and broader than just `incentive regulation`, since all forms of regulation encompass some type of incentive. In the electric utility industry, certain `sliding-scale` incentive plans have been employed for over 50 years, usually in municipal franchises. In fact, regulation has been undergoing incremental change and experimentation with alternative for a number of years. In an environment where competition is truly beginning to occur, combined with a growing concern over the efficiency and cost of the regulatory process, many companies, regulators, and legislators are engaged in a consolidation of these piecemeal and narrowly focused programs into broader, multifaceted, mechanisms which we refer to as `performance-based ratemaking` (PBR). The basic defining characteristics of PBR that is used to distinguish this form of regulation from ROR regulation are embedded in the goals of these programs.
- OSTI ID:
- 121497
- Report Number(s):
- CONF-9509109-; TRN: 95:007744-0006
- Resource Relation:
- Conference: National Association of Regulatory Utility Commissioners (NARUC) national conference on electric competition and the public interest, Gatlinburg, TN (United States), 10-13 Sep 1995; Other Information: PBD: 1995; Related Information: Is Part Of Competition and the public interest: Addressing strandable benefits and strandable costs in a restructured electric industry; PB: 160 p.
- Country of Publication:
- United States
- Language:
- English
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