New Benchmarking and Productivity Studies

In addition to its ongoing work for the Ontario Energy Board (OEB) to develop a new cost benchmarking model for smaller Ontario power distributors, PEG recently won three competitive bids to perform custom benchmarking studies for three of Ontario's larger utilities: Alectra Utilities, Elexicon Energy, and the hydroelectric operations of Ontario Power Generation. The Alectra study was filed April 12th. Using Ontario, U.S., and Alberta data, PEG developed new econometric models of the operation and maintenance expenses, capital cost, and total cost of power distributors. PEG also calculated the recent productivity trends of Ontario power distributors. During the eleven growth rate years during which the OEB's Renewed Regulatory Framework has been in effect, the total factor productivity growth of these distributors averaged 0.16% annually using simple arithmetic averages and 0.49% annually using cost-weighted averages. O&M productivity growth was more rapid than capital productivity growth, especially for larger companies.