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This research paper examines the 'utility information problem'—the lack of data regarding the locational value of distributed energy resources (DERs)—which obscures the boundaries of the electric distribution utility's natural monopoly. The author proposes that integrated distribution planning (IDP) is necessary to reveal this information, enabling a transition toward a Distribution System Optimizer (DSO) role. The paper evaluates two pathways to this transition: an information-intensive approach compatible with cost-of-service regulation and an outcome-focused approach utilizing performance-based regulation (PBR).

This research paper by Energy Innovation outlines a five-step framework for state regulators to design grid modernization programs that maximize benefits for customers. The authors emphasize the use of outcome-oriented metrics across three primary goals—affordability, resilience, and environmental performance—and suggest tying utility revenue to performance against these targets to align incentives.

This guide provides a structured list of questions for state policymakers and stakeholders to evaluate utility regulatory models, specifically comparing cost of service regulation and performance regulation in the context of evolving power system goals.

This research paper argues that regulators should shift from traditional measure-by-measure energy efficiency tracking to outcome-oriented, economy-wide metrics when tying utility compensation to performance. The authors contend that outcome-oriented metrics are more transparent, easier to monitor, and better aligned with broad policy goals, while reducing the administrative burden and regulatory conflict associated with uncertain savings estimates.

This case study examines the California Risk-Reward Incentive Mechanism (RRIM), an energy efficiency shareholder incentive program, to identify challenges associated with using counterfactuals to vet utility savings claims. The document highlights how measure-by-measure estimation of savings leads to regulatory conflict, high administrative costs, and volatile incentive payments, ultimately recommending a shift toward outcome-oriented metrics.

This white paper proposes a Performance Incentive Mechanism (PIM) to encourage utilities to prioritize peak load reduction over capital-intensive infrastructure expansion. The author recommends using an outcome-oriented metric—specifically percentage reduction in peak load—and a sloped, symmetrical compensation structure with upper and lower caps to align utility incentives with system efficiency and customer value.

This research paper examines different ownership and operation models for distributed energy resources (DERs), evaluating utility-centric, third-party-centric, and customer-centric approaches. Through various case studies, the author argues that any of these models can optimize the electricity system if they prioritize fair compensation, transparency, and adaptability to new technologies.

This summary report details a September 2013 briefing in St. Paul, Minnesota, regarding 'America’s Power Plan' (APP), a policy roadmap for achieving a high-renewables energy future. The document outlines the regional context of the Midwest, discusses the need for new utility business and regulatory models to accommodate distributed energy resources (DERs), and highlights Xcel Energy's experience in integrating variable wind power.

This research paper proposes a flexible framework for electricity policy in a hypothetical "51st State," focusing on system optimization across affordability, reliability, and environmental performance. It outlines modernized principles for rate design and market structure that accommodate the rise of distributed energy resources (DERs) and smart-grid technologies, arguing that these innovations challenge the traditional view of utilities as natural monopolies.

This report by Energy Innovation argues that the traditional electric utility business model in the United States is facing a 'death spiral' due to technological advances, declining energy demand, and climate regulations. The author proposes a shift toward 'performance-based regulation,' where utilities are rewarded for achieving goals in reliability, affordability, and environmental performance rather than for the volume of electricity sold.

This working paper examines how Integrated Resource Plans (IRPs) used by electric utilities influence the integration of solar energy and the ability of large-scale customers, such as corporations and local governments, to meet their clean energy targets.