UTILITY MODELS: QUESTIONS FOR REGULATORS AND STAKEHOLDERS TO ASK AND ANSWER AS UTILITIES EVOLVE

The document outlines critical questions for regulators and stakeholders to assess utility regulatory models. For states using cost of service regulation, it prompts analysis of whether current financial structures incentivize innovation, environmental performance, and the role of third-party providers. For those considering performance regulation, it focuses on the definition of quantitative metrics, the consultation of stakeholders, the setting of ambitious targets, and the balance of financial incentives and penalties to drive the energy transition.

• For states utilizing cost of service regulation, the document suggests evaluating if the current financial structure is capable of providing "comprehensive and coordinated solutions" for current and future utility issues and whether it rewards "adaptation and innovation" in response to new technologies and changing customer preferences.
• Regulators under cost of service models are encouraged to consider if utilities should remain the "sole providers of electricity services" or if the model should "enable a role for customers and third-party providers."
• When assessing performance regulation, the document emphasizes the need for clearly defined goals associated with "quantitative metrics" that can be "tracked and verified with existing or easily-obtained data."
• The guide questions whether a "higher return" for utilities is appropriate if they assume more risk to support the energy transition and asks how to balance "symmetrical or asymmetrical performance rewards and penalties".

APA

Lehr, R., & Aggarwal, S. (2017). UTILITY MODELS: QUESTIONS FOR REGULATORS AND STAKEHOLDERS TO ASK AND ANSWER AS UTILITIES EVOLVE. Energy Innovation. https://energyinnovation.org/wp-content/uploads/UtilityRegModels_QuestionsList.pdf

Chicago

Lehr, Ron, and Sonia Aggarwal. UTILITY MODELS: QUESTIONS FOR REGULATORS AND STAKEHOLDERS TO ASK AND ANSWER AS UTILITIES EVOLVE. Energy Innovation, 2017. https://energyinnovation.org/wp-content/uploads/UtilityRegModels_QuestionsList.pdf.

Wikipedia

{{cite report |last1=Lehr |first1=Ron |last2=Aggarwal |first2=Sonia |title=UTILITY MODELS: QUESTIONS FOR REGULATORS AND STAKEHOLDERS TO ASK AND ANSWER AS UTILITIES EVOLVE |publisher=Energy Innovation |date=February 2017 |url=https://energyinnovation.org/wp-content/uploads/UtilityRegModels_QuestionsList.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{lehr2017utility, author = {Lehr, Ron and Aggarwal, Sonia}, title = {{UTILITY MODELS: QUESTIONS FOR REGULATORS AND STAKEHOLDERS TO ASK AND ANSWER AS UTILITIES EVOLVE}}, institution = {Energy Innovation}, year = {2017}, month = feb, url = {https://energyinnovation.org/wp-content/uploads/UtilityRegModels_QuestionsList.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }