Toward a More Resilient Electrical Grid for California

Alex Lei considers two policy options to improve the resilience of California’s electrical grid in the face of climate change: performance-based regulation for utilities and tax incentives for microgrids. After analyzing their e!ectiveness, equity, and political feasibility, he makes the case for the State to adopt performance-based regulation, which would require investor-owned utility companies to achieve pre-negotiated goals or face lost profits.