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Incentive Regulation

The Brattle Group brings to its assignments an understanding of international practice in regulation of gas, electricity, and telecommunications. We help companies around the world to develop and implement innovative regulatory mechanisms and communicate their merits to regulators and other stakeholders. We support proposed regulatory frameworks through expert testimony.

These mechanisms include various forms of incentive or performance-based regulation, formula-based rates, and innovative tolls for the recovery of uncontrollable costs, capital expenditures, and the cost of environmental compliance. We assist utilities to review available alternative regulatory solutions to help develop, propose, and/or implement innovative incentive regulation plans.

We also have expertise in regulatory consulting strategy, utility capital and operating expenditures, key financial issues affecting regulated utilities, cost of capital, regulatory accounting practices and processes, and quality of service issues.

Representative Engagements

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Related Experts

Principals:
Frank C. Graves
Philip Q Hanser
Robert S. Mudge
Johannes P. Pfeifenberger
Joseph B. Wharton

Senior Associates:
Toby Brown
Richard Caldwell

Selected Publications

Incentive Regulation: Introduction and Context
Incentive Regulation—Design: Key Plan Components I
Incentive Regulation: Lessons from other Jurisdictions
Options for Reforming the Building-Blocks Framework
Review of Incentive Power and Regulatory Options in Victoria
Downstream Price-Cap Regulation and Upstream Market Power
Obstacles to Investment: How Regulators Create Incentives for Electric Infrastructure Investment Depends on How They Deal With a Long List of Incentives
Regulating Service Quality: A Survey
Efficiency as Discovery Process: Why Enhanced Incentives Outperform Regulatory Mandates
REX Incentives: PBR Choices that Reflect Firms' Performance Expectations
The State of Performance-Based Regulation in the U.S. Electric Utility Industry
Before the Public Service Commission of the State of Missouri, Case No. EM-96-149, White Paper on Incentive Regulation: Assessing Union Electric’s Experimental Alternative Regulation Plan, on behalf of Ameren Services Company