In February 2015, the New York Public Service Commission issued a pathbreaking order in its Reforming the Energy Vision (REV) proceeding, fundamentally steering utility regulation away from the century-old cost-based model.
The Commission's innovation, which rewards utilities for creating value for customers, mirrors the analysis presented by Steve Kihm, our chief economist, and Arizona State University's Elisa Graffy in a recent Energy Law Journal article.
The New York Commission order cites to that article as providing the essential contrast between the old and the new regulatory models.
Does disruptive competition mean a death spiral for electric utilities? by Elisabeth Graffy and Steven Kihm, Energy Law Journal, May 2014.