PBR for Energy Utilities

Description:

PBR for Energy Utilities - On Demand This 6-hour course taught by expert Mark Newton Lowry will explore performance-based ratemaking (PBR). The traditional cost of service approach to energy utility ratemaking is under stress . Business conditions encourage frequent rate cases that weaken utility performance incentives and may raise regulatory cost. Many also question utility incentives to protect the environment. PBR can improve utility performance and under some approaches streamline ratemaking. This course will explain the rationale for PBR and detail four established approaches used today: - Relaxation of the link between revenue and grid use (e.g. revenue decoupling) - Performance metrics and performance incentive mechanisms (“PIMs”) - Targeted incentives for underused practices (e.g. pilot programs and totex accounting) - Multiyear rate plans - Salient precedents and recent developments will also be highlighted. Comparisons will be made to capital cost trackers and formula rates as well as to traditional ratemaking.