Best Practice Guide

Glossary

Introduction

Planning an Energy Program

Funding and Approval

Education

Lighting

Central HVAC System

Procurement Policy

Building Envelope

Demand Response

Distributed Generation

Water Use

Motors

Food Service

Resources and Appendices

Lessons Learned

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