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Benchmarking Granular Power Distributor Costs

Web Wisconsin • April 19, 2021

New Research Uses Ontario’s Extensive, Detailed Data

The Ontario Energy Board is the leading user of statistical benchmarking in North American regulation. The allowed pace of revenue growth is linked to the results of an annually-updated total cost benchmarking study. Board staff have for several years explored the possibility of benchmarking granular power distribution costs using the detailed data they gather on distributor operations. PEG Vice President Dave Hovde has assisted Board staff in this initiative. His latest report was released April 1. Econometric cost models and unit cost metrics were developed for six kinds of operation expenses ("opex") and four kinds of capital expenditures ("capex").  

Opex
  1.  Lines
  2.  Metering 
  3.  Billing
  4.  Vegetation Management
  5.  Station Equipment
  6.  Poles, Towers and Fixtures
Capex
  1.  Meters
  2.  Station
  3.  Poles, Towers and Fixtures
  4.  Line Transformers
The report presents the results of the work and evaluates the relative merits of each. A webinar was held May 13 to discuss the results and directions for future research.

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