Total Cost Benchmarking

The Ontario Energy Board (OEB) is updating its benchmarking methodology as part of its ongoing efforts to enhance Ontario’s ratemaking framework.

The current Total Cost Benchmarking (TCB) method the OEB uses to assess the performance of each utility has not been updated since 2013. This consultation is aimed at renewing the 2013 benchmarking methodology which is expected to incent distributors towards better productivity. The OEB plans to update this methodology and the data it requires, including updates to the X factor in the I-X formulation. The OEB is also considering the use of a Global Stretch Factor (GSF) as a

The Ontario Energy Board (OEB) is updating its benchmarking methodology as part of its ongoing efforts to enhance Ontario’s ratemaking framework.

The current Total Cost Benchmarking (TCB) method the OEB uses to assess the performance of each utility has not been updated since 2013. This consultation is aimed at renewing the 2013 benchmarking methodology which is expected to incent distributors towards better productivity. The OEB plans to update this methodology and the data it requires, including updates to the X factor in the I-X formulation. The OEB is also considering the use of a Global Stretch Factor (GSF) as a new Ontario industry-wide productivity expectation for electricity distributors.

As part of our consultation, the OEB is engaging stakeholders in its evaluation of current methods. Their input on recommended changes and improvements will support developing the updated TCB model.

The OEB has retained the consulting firm, Pacific Economics Group Research, LLC (PEG), to support the TCB update and contribute to the associated stakeholder consultation work. Working under the oversight of OEB staff, PEG will engage with stakeholders for review and feedback.

  • Timeline extended for draft report on TCB Consultation

    The OEB is extending the timeline for releasing its draft report on enhancements to the Total Cost Benchmarking methodology. Originally scheduled for July 15, 2025, the report will now be shared at a later date.

    This change reflects our commitment to incorporating the valuable feedback we’ve received from stakeholders - including utilities, intervenors, and regulators - through stakeholder meetings, surveys, interviews, and written submissions. By taking the time to integrate these insights, we aim to ensure the draft report accurately represents the priorities and perspectives of all stakeholders.

    We’ll notify all consultation participants as soon as the draft is ready and provide clear instructions on how to review the document and submit written comments.

    Thank you to everyone who attended the stakeholder meeting on April 24, 2025, and has contributed to this important process. Your engagement continues to shape the direction of this work.

    If you have any questions, please contact the Performance Analytics & Reporting Team at performance_reporting@oeb.ca.

  • OEB Launches Total Cost Benchmarking Consultation

    The OEB has launched a consultation to review the use of total cost benchmarking to assess the overall cost performance of rate-regulated electricity distributors. This consultation is aimed at renewing the 2013 benchmarking methodology which is expected to incent distributors towards better productivity. Stakeholder feedback will inform the OEB’s consideration of updates to the components of the X factor in the I-X formulation.

Page last updated: 15 Aug 2025, 03:46 PM