Benefit-Cost Analysis Framework for Addressing Electricity System Needs

Consultation has concluded.

The OEB is developing a Benefit-Cost Analysis (BCA) Framework to guide electricity distributors in assessing the economic feasibility of leveraging non-wires solutions (NWS) – alternatives to conventional infrastructure, including distributed energy resources – to meet distribution system needs. This initiative unfolds in two distinct phases.

Phase One, finalized and released in May 2024, introduced two cost-effectiveness tests:

  • The Distribution Service Test (DST) evaluates the quantitative impacts of NWS on the distribution system.
  • The Energy System Test (EST) is an optional extension of the DST that considers the broader energy system.

Phase One also provided general methodological guidance, including how to account for qualitative impacts in assessing NWS.

This project has now entered Phase Two. This phase primarily focuses on:

  • Refining the EST.
  • Exploring approaches to incorporate societal impacts into the assessment of NWS.

The OEB is developing a Benefit-Cost Analysis (BCA) Framework to guide electricity distributors in assessing the economic feasibility of leveraging non-wires solutions (NWS) – alternatives to conventional infrastructure, including distributed energy resources – to meet distribution system needs. This initiative unfolds in two distinct phases.

Phase One, finalized and released in May 2024, introduced two cost-effectiveness tests:

  • The Distribution Service Test (DST) evaluates the quantitative impacts of NWS on the distribution system.
  • The Energy System Test (EST) is an optional extension of the DST that considers the broader energy system.

Phase One also provided general methodological guidance, including how to account for qualitative impacts in assessing NWS.

This project has now entered Phase Two. This phase primarily focuses on:

  • Refining the EST.
  • Exploring approaches to incorporate societal impacts into the assessment of NWS.

Consultation has concluded.

  • OEB  Releases Draft Phase Two Revisions to the BCA Framework

    The OEB has released draft revisions proposed for Phase Two of the BCA Framework. The BCA Framework supports electricity distributors in assessing the economic feasibility of non-wires solutions to meet distribution system needs. These revisions aim to further enable cost-effective and innovative approaches that can help support Ontario’s economic growth.

    Registered participants are invited to submit written feedback on the draft revisions by March 6, 2026.

    The OEB has released draft revisions proposed for Phase Two of the BCA Framework. The BCA Framework supports electricity distributors in assessing the economic feasibility of non-wires solutions to meet distribution system needs. These revisions aim to further enable cost-effective and innovative approaches that can help support Ontario’s economic growth.

    Registered participants are invited to submit written feedback on the draft revisions by March 6, 2026.

    Consultation has concluded.

  • Upcoming Release of Draft BCA Framework Revisions in Early 2026

    The OEB will now release the draft Phase Two revisions to the Benefit-Cost Analysis (BCA) Framework in early 2026. This timing ensures the framework aligns with priorities outlined in the Ontario government’s Integrated Energy Plan.

    Updated timelines for feedback will be shared when the draft revisions are released.

    More information on stakeholders who registered for Phase Two engagement, including those approved for cost award eligibility, can be found in the OEB letter issued on November 26, 2025.

    Thank you for your patience as we work to ensure the framework supports the adoption of cost-effective and innovative solutions that can support Ontario’s economic growth.

    The OEB will now release the draft Phase Two revisions to the Benefit-Cost Analysis (BCA) Framework in early 2026. This timing ensures the framework aligns with priorities outlined in the Ontario government’s Integrated Energy Plan.

    Updated timelines for feedback will be shared when the draft revisions are released.

    More information on stakeholders who registered for Phase Two engagement, including those approved for cost award eligibility, can be found in the OEB letter issued on November 26, 2025.

    Thank you for your patience as we work to ensure the framework supports the adoption of cost-effective and innovative solutions that can support Ontario’s economic growth.

    Consultation has concluded.

  • Phase Two BCA Framework launches

    The OEB is initiating Phase Two of its consultation on the Benefit-Cost Analysis Framework for Addressing Electricity System Needs (BCA Framework). This phase builds on the work completed in Phase One by proposing potential refinements to the Energy System Test and exploring the inclusion of societal impacts related to energy conservation investments within the framework. Stakeholders interested in participating are invited to submit their intent via email by November 4, 2025.

    The OEB is initiating Phase Two of its consultation on the Benefit-Cost Analysis Framework for Addressing Electricity System Needs (BCA Framework). This phase builds on the work completed in Phase One by proposing potential refinements to the Energy System Test and exploring the inclusion of societal impacts related to energy conservation investments within the framework. Stakeholders interested in participating are invited to submit their intent via email by November 4, 2025.

    Consultation has concluded.