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Economic Benchmarking Workshop: Insights on Outputs and Environmental Factors

Recap of recent workshops on economic benchmarking, focusing on transmission and distribution outputs, environmental factors, and stakeholder discussions. Review of inputs and criteria, discussions on reliability and environmental factors, and preparation for upcoming workshops. Objectives include addressing input variables, economic insights, and defining inputs and factors. Minutes of the meeting will be recorded for further review.

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Economic Benchmarking Workshop: Insights on Outputs and Environmental Factors

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Presentation Transcript

  1. Better regulation workshopEconomic benchmarking inputs

  2. Issues paper released late last year • Submissions due last week • Two recent workshops • Transmission outputs and environmental factors • Distribution outputs and environmental factors • This is the third workshop on economic benchmarking Recap of recent activity

  3. Numerous matters discussed • Discussion regarding the application of economic benchmarking • Some stakeholders supportive & others apprehensive • Broad agreement that the criteria for selecting outputs and environmental factors were appropriate Summary of recent workshops

  4. Functional outputs are preferable to billed outputs • Throughput not considered to be a driver of costs • Debate concerning the use of either peak demand or system capacity • Broad agreement that reliability is an output – however issues regarding its use Summary of recent workshops -Outputs

  5. Point made that economic benchmarking cannot account for all environmental factors • Some discussion regarding the importance of environmental factors • Support for the AER’s shortlist Summary of recent workshops -Environmental factors

  6. AER to consider workshop discussion submissions in preparing for next workshops • Focus on measurement issues • Development of definitions for inputs and environmental factors • Further briefing notes to be released Forward work program

  7. Where are we today?

  8. Discuss the NSP input variables • Durable vs non-durable inputs and input selection criteria • Operating inputs • Capital inputs • Economic insights will present on these issues Objective of today’s meeting

  9. Minutes of meeting will be recorded, but not attributed to particular stakeholders • Please provide any comments that you have on the minutes by next Tuesday Housekeeping

  10. Agenda

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