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Glossary Renewable energy / Term

Performance Based Regulation (PBR)

Any rate setting mechanism that attempts to link rewards (generally profits) to desired results or targets. PBR sets rates, or components of rates, for a period of time based on external indices rather than a utility’s cost of service. Other definitions include light-handed regulation that is less costly and less subject to debate and litigation. A form of rate regulation that provides utilities with incentives to reduce their costs.

Permanent link Performance Based Regulation (PBR) - Creation date 2021-06-26


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