Power Transmission Benchmarking and Productivity Study

PEG filed evidence September 5th in an Ontario Energy Board proceeding to establish a performance-based ratemaking (“PBR”) framework for power transmission services of Hydro One Networks. The evidence includes a study of the productivity trends of a large sample of U.S. power transmitters. The typical multifactor productivity of the sampled transmitters declined at an increasing rate over the sample period considered. PEG also developed a sophisticated econometric cost benchmarking model and used it to benchmark the recent historical and forecasted future cost of Hydro One. Hydro One is one of North America’s largest power transmitters.