Performance-Based Regulation: Getting Down to Business Model Reform in Colorado

This briefing discusses the mandate given to the Colorado Public Utilities Commission (PUC) to investigate the transition to a performance-based regulation (PBR) model to align utility operations with state clean energy and decarbonization goals.

• In May 2019, Colorado enacted legislation establishing a 100 percent greenhouse gas (GHG) emissions reduction goal for the electricity sector by 2050 and an economy-wide emissions reduction goal of 90 percent below 2005 levels by 2040.
• Section 11 of S.B. 236 requires the Colorado Public Utilities Commission (PUC) to investigate if a performance-based regulation (PBR) model using financial incentives and performance metrics would be "net beneficial" to the state. The PUC must report its findings to relevant committees by November 2020, focusing on how PBR aligns with five goals: safety, reliability, cost-efficiency, emissions reductions, and DER expansion.

APA

RMI (2019). Performance-Based Regulation: Getting Down to Business Model Reform in Colorado. https://rmi.org/resources/performance-based-regulation-getting-down-to-business-model-reform-in-colorado/

Chicago

RMI. Performance-Based Regulation: Getting Down to Business Model Reform in Colorado. 2019. https://rmi.org/resources/performance-based-regulation-getting-down-to-business-model-reform-in-colorado/.

Wikipedia

{{cite report |author=RMI |title=Performance-Based Regulation: Getting Down to Business Model Reform in Colorado |date=18 September 2019 |url=https://rmi.org/resources/performance-based-regulation-getting-down-to-business-model-reform-in-colorado/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2019performancebased, author = {{RMI}}, title = {{Performance-Based Regulation: Getting Down to Business Model Reform in Colorado}}, institution = {RMI}, year = {2019}, month = sep, url = {https://rmi.org/resources/performance-based-regulation-getting-down-to-business-model-reform-in-colorado/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }