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Best Practice Guide |
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Glossary |
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Best Practice Guide GlossaryBrowse the glossary alphabetically: PERFORMANCE-BASED REGULATION (PBR)Return to list of termsAny 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 |