The Nuts and Bolts of Performance-Based Regulation

This introductory guide by RMI explains performance-based regulation (PBR) as a tool to modernize utility regulatory frameworks to better accommodate renewable energy, distributed resources, and electrification while addressing affordability and emissions.

• Traditional utility regulatory frameworks in most states were designed for the early 20th century to support large, centralized fossil fuel power plants, but are now challenged by the rise of distributed energy resources, renewable energy, end-use electrification, and affordability concerns.
• Performance-based regulation (PBR) is a regulatory approach intended to incentivize utilities to reduce costs, create innovative programs for customers, and meet specific policy goals, including the reduction of greenhouse gas emissions, improved social equity, and increased demand flexibility.

APA

RMI (2024). The Nuts and Bolts of Performance-Based Regulation. https://rmi.org/resources/the-nuts-and-bolts-of-performance-based-regulation/

Chicago

RMI. The Nuts and Bolts of Performance-Based Regulation. 2024. https://rmi.org/resources/the-nuts-and-bolts-of-performance-based-regulation/.

Wikipedia

{{cite report |author=RMI |title=The Nuts and Bolts of Performance-Based Regulation |date=3 July 2024 |url=https://rmi.org/resources/the-nuts-and-bolts-of-performance-based-regulation/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024nuts, author = {{RMI}}, title = {{The Nuts and Bolts of Performance-Based Regulation}}, institution = {RMI}, year = {2024}, month = jul, url = {https://rmi.org/resources/the-nuts-and-bolts-of-performance-based-regulation/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }