Policy Solutions: Performance-Based Rates

We must compensate utilities based on their overall performance, taking into account energy efficiency, innovations and customer service, instead of simply the amount of electricity they sell.

Suggested reading on performance-based rates:

• Perfect Power Seal of Approval™
  This fact sheet provides background information on the Perfect Power Seal of Approval™, a smart grid performance rating system in development by the Galvin Electricity Initiative.
• Guiding Principles for a Consumer-Driven Electric Power System
  This fact sheet is a foundational document for the Initiative, reflecting our belief that reforms to the electricity sector should focus on empowering consumers.
• The Policy Framework for a Consumer-Driven Electric Power System
  This fact sheet outlines examples of regulatory policies that form the building blocks of a consumer-driven electric power system.

For further reading:

• "Congress, Think Small: We Don't Need a National Supergrid, We Need Microgrids" Article by John Kelly, Deputy Director of the Galvin Electricity Initiative
• An Open Letter to U.S. Department of Energy Secretary-designate Dr. Steven Chu: Fix the Grid