Best Practice Guide

Glossary

Introduction

Planning an Energy Program

Funding and Approval

Commissioning

On-the-Farm Energy Use

Lighting

Building Envelope

Central HVAC System

Boilers

Steam

Combined Heat and Power

Compressed Air

Refrigeration

Motors

Demand Response

Distributed Generation

Water Use

Best Practice Guide Glossary

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PERFORMANCE-BASED REGULATION (PBR)Return to list of terms

Any rate-setting mechanism that attempts to link rewards (generally profits) to desired results or targets. PBR sets rates, or components of rates, for a period of time based on external indices rather than a utility's cost-of-service. Other definitions include light-handed regulation that is less costly and less subject to debate and litigation. A form of rate regulation that provides utilities with better incentives to reduce their costs than does cost-of-service regulation.

Source: California Energy Commission