Massachusetts PBR Testimony

Pacific Economics Group personnel have played a prominent role in Massachusetts PBR since its inception in the 1990s. In December, PEG Senior Advisor Larry Kaufmann continued this tradition by filing testimony in support of a PBR proposal by Boston Gas, a National Grid company. The plan features a five year term, an indexed revenue cap, revenue decoupling, and targeted performance incentive mechanisms. Dr. Kaufmann discussed PBR from a policy perspective and detailed a statistical benchmarking study that he prepared which found Boston Gas to be a superior cost performer. Last year, he supported a PBR plan for Grid’s power distribution services in Massachusetts which the Department approved.