Best Practice Guide

Glossary

Introduction

Planning an Energy Program

Funding and Approval

Lighting

Building Envelope

Central HVAC System

Distributed Generation

Demand Response

Commissioning

Procurement Policy

Water Use

Education

Energy Efficiency in Telecommuting

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