New York Utility Performance Metrics and Incentives

Advanced Energy Economy Institute
Project completed in 2018

Advanced Energy Economy Institute retained Synapse to review earnings adjustment mechanisms proposed by National Grid in New York. Earnings adjustment mechanisms provide performance incentives for utilities that better align utility performance with regulatory goals. Tim Woolf and Melissa Whited filed testimony before the New York Public Service Commission that provided recommendations regarding which performance incentive mechanisms to approve, as well as appropriate financial incentive allocations.

Synapse also prepared a report on state-wide performance incentive mechanisms for New York. The report examines some of the strengths and weaknesses of each of the three types of performance incentive mechanisms: outcome-based, program-based, and action-based. Because current efforts to implement performance incentive mechanisms in New York focus on outcome‐based mechanisms, the report provides an in-depth analysis of outcome-based performance incentives.