PUC initiates second phase of performance-based regulation (PBR) investigation – Docket No. 2018-0088Posted on Jul 9, 2019 in Important Dockets
The Public Utilities Commission (PUC) has convened the next phase PBR. The PUC oversaw the completion of Phase 1, which examined the current regulatory framework to identify specific areas of focus for further PBR development and to identify key goals and outcomes.
Phase 2 will focus on the development of a detailed framework of a regulatory process meant to better encourage the utilities to achieve state goals, such as renewable energy adoptions, and the reduction of greenhouse gases, while still keeping the rates affordable. This process will look at new revenue adjustment mechanisms, performance incentive mechanisms, and other regulatory processes to reward or penalize the utility based on their progress.
Guiding principles to inform the development of PBR mechanisms in Phase 2 include: (1) a customer-centric approach, (2) administrative efficiency, and (3) utility financial integrity.
A procedural schedule has been established for Phase 2 in Order No. 36388 of this docket.