Performance Benchmarking
Performance benchmarking research can help utilities understand how their metrics compare to a customized benchmark or target. We do this by using benchmarking techniques that adjust for the specific operating characteristics of the utility using either regression or peer group modeling. This allows for a more accurate “apples to apples” comparison of the utility’s actual values and what values would the utility be expected to display given its circumstances.
- Metrics that can be benchmarked:
- Total costs of the utility (revenue requirement)
- Operation & Maintenance (O&M)
- Capital costs and annual capital expenditures
- Reliability
- Heat rates, plant portfolios
Clearspring Energy Advisors’ staff has the depth and extensive experience required to provide cutting-edge benchmarking research. Our staff has provided expert witness testimony in regulatory applications and helped utilities internally evaluate their metrics and set reliability targets used for strategic decisions or in setting employee bonus targets.
“If you can’t measure it, you can’t manage it.”
- Peter Drucker
Clearspring provided performance cost benchmarking and reliability target setting services to a client so that they could better understand what areas of the utility’s operations are being run efficiently and which areas may require more focused attention. We used statistical modeling techniques to account for numerous service territory conditions to provide the best and most accurate performance evaluation. Our team presented the findings to the utility and also provided expert witness testimony in support of regulatory proceedings.