Incentive Regulation in the United States: Current Trends and a Look Back

22 August 2018
By Dr. Jeff D. Makholm, Dr. Laura T.W. Olive, et al.

In a recent brief, NERA Managing Director Dr. Jeff D. Makholm, Senior Consultant Dr. Laura T.W. Olive, and former Consultant Max Luke examine trends of incentive regulation in the United States and detail NERA’s involvement in the pursuit and development of incentive regulation. Several North American jurisdictions have recently taken up the challenge to re-examine their regulatory frameworks in an era of fast-moving technology and a heightened public policy push for more responsive and efficient energy utilities. As the oldest and largest firm of consulting economists (whose founders began their work in the United States in the 1950s and in the United Kingdom in 1984), NERA has been directly involved with all aspects of incentive regulation as it has shaped energy utilities and regulatory initiatives around the world. NERA’s participation in these noteworthy advances in the application of incentive regulation reflects our broad roles in regulatory economics in many sectors, all grounded in the scholarly work of our economists in the tradition of our founders and the deep work of our economists in energy sectors around the world since.