Findings and Recommendations: Comparators and Cohorts For Electricity Distribution Rates

TL;DRAbstract

December 2004 INTRODUCTION This report presents the findings, recommendations, and supporting analysis of Christensen Associates’ study of the Comparators and Cohorts mechanism. The study addresses the issue of feasibility of developing cost drivers to determine Cohorts of local distribution companies (LDCs) and developing Comparators, for use by the Ontario Energy Board (the Board) and its staff in assessing LDC rate applications. Second, the report identifies a plausible, though preliminary, set of Comparators and Cohorts. Third, the report defines the necessary data and information to be reported by the LDCs for their rate applications in the 2006 Electricity Distribution Rates (2006 EDR) proceeding, should the Board decide to implement the Comparators and Cohorts mechanism. The report concludes with recommendations for the Board’s consideration.

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