Synapse has considerable expertise investigating alternative ratemaking mechanisms and policies such as Performance-Based Ratemaking (PBR). We identify opportunities where PBR may, or may not, be appropriate, and we develop options to ensure that regulated utilities are provided with meaningful financial incentives to reduce cost and increase efficiency. We also assess and develop performance standards to ensure that utilities will maintain (or improve) customer service, address the needs of low-income customers, and adequately support innovative resources such as energy efficiency and distributed generation. We also investigate performance standards to ensure that utilities continue to provide safe, reliable service to all customers under all conditions. Synapse has been involved in the development and evaluation of alternative ratemaking mechanisms in various rate making proceedings. We have investigated and evaluated state- and utility-specific experiences in performance incentives and decoupling mechanisms. Specific Synapse projects related to this issue include the following:

	Testimony before the Connecticut Department of Public Utility Control critiquing the PBR proposal of the Connecticut Natural Gas Company
	Report for the National Association of Regulatory Utility Commissioners on PBR in a restructured electricity industry
	Assisting US EPA in drafting the PBR portions of its Energy Efficiency Action Plan
	Testimony before the Connecticut Department of Public Utility Control in which Synapse reviewed the performance-based ratemaking proposal of United Illuminating Company. The review focused on performance standards necessary to ensure that incentives to cut costs would not result in a degradation of reliability, customer services, or customer satisfaction.