Using performance-based regulatory incentives for energy efficiency proved to be successful. Should similar incentives be created for reliability? In part one of this discussion, Rich Sedano, of Regulatory Assistance Project, and Danielle Sass Byrnett, of NARUC, discuss how performance-based incentives set by state commissions may accelerate innovation and provide clearer direction to utilities for grid modernization. They also discuss advanced rate structures that move innovation forward while keeping electricity affordable for the ratepayer.