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Technical Definition
Total cost is calculated as the sum of a distributor's capital costs and OM&A costs, including certain adjustments to make the costs more comparable between distributors, per reporting period. This amount is then divided by the total number of customers that the distributor serves.

Plain Language Description
A simple measure that can be used as a comparison with other utilities is the utility's total cost per customer. Total cost is a sum of all the costs incurred by the utility to provide service to its customers. The amount is then divided by the utility's total number of customers.

How Can This Measure be Compared?

✓ Year-over-Year
✓ Distributor-to-Distributor

Technical Definition
A total cost benchmarking evaluation is used to produce a single efficiency ranking of Ontario's distributors. The efficiency ranking is then segmented into five groups based on the size of the difference between each distributor's actual costs and its predicted costs as estimated in the benchmarking evaluation. Distributors whose actual costs are lower than their predicted costs are considered more efficient.

Group Demarcation Points for Relative Cost Performance
1 Actual costs are 25% or more below predicted costs
2 Actual costs are 10% to 25% below predicted costs
3 Actual costs are within +/-10% of predicted costs
4 Actual costs are 10% to 25% above predicted costs
5 Actual costs are 25% or more above predicted costs

Plain Language Description
The utility must manage its costs successfully in order to help assure its customers they are receiving value for the cost of the service they receive. Utilities' total costs are evaluated to produce a single efficiency ranking. This is divided into five groups based on how big the difference is between each utility's actual and predicted costs. Utilities whose actual costs are lower than predicted are considered more efficient and will be assigned to Group 1 or Group 2. Utilities that are considered average performers will be assigned to Group 3. Utilities whose actual costs are higher than predicted will be assigned to Group 4 or Group 5.

How Can This Measure be Compared?

✓ Year-over-Year
✓ Distributor-to-Distributor

Average Number of Hours that Power to a Customer is Interrupted

Technical Definition
System Average Interruption Duration Index (Loss of Supply) is an index of system reliability that expresses the average amount of time, per reporting period, supply to a customer is interrupted. It is determined by dividing the total monthly duration of all interruptions experienced by all customers (excluding interruptions caused by Loss of Supply events), in hours, by the average number of customers served:
= (Total Customer Hours of Interruptions - Total Customer Hours of Interruptions caused by Loss of Supply events)/ Average Number of Customers Served

Plain Language Description
An important feature of a reliable distribution system is recovering from power outages as quickly as possible. The utility must track the average length of time, in hours, that its customers have experienced a power outage over the past year.

Average Number of Times that Power to a Customer is Interrupted

Technical Definition
System Average Interruption Frequency Index (Loss of Supply) is an index of system reliability that expresses the number of times per reporting period that the supply to a customer is interrupted. It is determined by dividing the total number of interruptions experienced by all customers (excluding interruptions caused by Loss of Supply events), by the average number of customers served:
= (Total Customer Interruptions - Interruptions caused by Loss of Supply events) / Average Number of Customers Served

Plain Language Description
Another important feature of a reliable distribution system is reducing the frequency of power outages. The utility must also track the number of times its customers have experienced a power outage over the past year.

How Can This Measure be Compared?

✓ Year-over-Year
✓ Distributor-to-Distributor