Benefit-Cost Analysis Framework for Addressing Electricity System Needs

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.

  • 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.

Page last updated: 20 Oct 2025, 02:28 PM