Performance-Based Regulation in a High Distributed Energy Resources Future

Lawrence Berkeley National Laboratory / by Mark Newton Lowry, Tim Woolf and
Schwartz, Lisa C.

[Utility Dive] As new energy technologies proliferate and eat into electricity sales, utilities and regulators are searching for a rate design that addresses growing load defection.

One currently popular response is tinkering with rate design in a way that could compromise these technologies’ value propositions, but utilities nationwide have experienced a backlash from customers intolerant of those rate changes.

A less common but better option for utilities is rate design that’s palatable to everyone, according to a new report, “Performance-Based Regulation in a High Distributed Energy Resources Future,” from the Lawrence Berkeley National Laboratory (LBNL). The study promotes performance-based regulation as the key to a future grid with “a high reliance on energy efficiency, peak load management, distributed generation and storage.”

It is becoming more difficult to make the longstanding cost-of-service regulation work, LBNL Researcher Lisa Schwartz, the paper’s editor, told Utility Dive…


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