There should be competitive…

There should be competitive process for major transmission investments. In cases where competitive process is not viable the transmitter be required to undergo a more rigorous prudency review of the project costs; this process would include benchmark reporting of investment costs before, during and after construction completion. The additional reporting and prudence review will provide supplemental protection to Ontario customers.

Transmission cost allocation and the “Beneficiary Pays Principle”, the allocation of transmission costs could potentially result in the allocation of significant costs to Local Distribution Companies (LDCs) which receive little (or no) benefit from new transmission investments. it is important that the allocation of costs be identified and justified early in the process, as misallocations can have significant consequences in terms of both customer impact and resourcing requirements.