>>>A pressure reducing regulator produces a down stream pressure equal to the setpoint, as long as the upstream pressure is greater than or equal to the setpoint.
If the upstream pressure drops below the setpoint of the regulator, then the regulator acts like a piece of pipe (pressure in = pressure out).<<<<
Well, it'll act as a fixed restriction anyway. Most regulators have pretty low Cv values so even if they go wide open, the restriction of the regulator is equivalent to MANY diameters of straight pipe, or an orifice with a pretty small bore. Example: Published Cv of a 1" full-bore ball valve: 110. Cv of a 1" Globe control valve: 15. Cv of a 1" regulator: 2.3.