performance-based rates, PBR, decoupling, Connecticut, Take Back Our Grid Act, PIMs, performance incentive mechanisms, IRA, Inflation Reduction Act

In April, Connecticut became one of a handful of states to start implementing performance-based rates. Performance-based rates (PBR) align utility profits with public policy goals by changing how utilities invest and make money. In past blogs, we have explored how states can use metrics to pivot program design to include climate and equity goals, and this blog will look at how states can financially incentivize utilities by aligning profits with policy using performance-based rates (PBR).