if profit is capped at 10% of revenue then it sounds like the incentive is to raise revenue, not lower expenses.
If it costs $900 to deliver a day's energy to a customer, they can charge $1000, making $100 profit per customer-day.
Where is the incentive to reduce expenses if the only way you can raise profit is by raising expenses?
The same is true of healthcare insurance in the US. The Affordable Care Act instituted an 80/20% rule for insurers. Naturally, the best way to increase profit is to drive up the cost of healthcare.
The Federal Energy Regulatory Commission (FERC) allows for an equity rate of return on assets of approx 10% (9.3). [1]
As a result, California IOUs don't have an incentive to sell more power, but do have an economic incentive to build more assets. Asset construction is driven by growing peak demand. Or under-investment in O&M.
[0] https://www.sciencedirect.com/science/article/abs/pii/S09571...
[1] https://www.utilitydive.com/news/ferc-lowers-pge-transmissio...