The Nuts and Bolts of Performance-Based Regulation: Tools to Build a More Affordable, Reliable, and Equitable Grid JULY 2024 PURPOSE This guide aims to introduce the basics of performancebased regulation (PBR) for electric utilities. It begins by explaining the need for changes to the utility business model and the goals of PBR, before moving into the advantages and disadvantages of different PBR tools, alternative regulatory mechanisms, real-world examples, and important considerations in PBR processes. Th ...