Hydro One is the largest electricity transmission and distribution company in Ontario, with $24.33 billion in total assets as of 2015. The company owns and operates substantially all of Ontario’s electricity transmission system, accounting for about 97% of Ontario’s transmission. The distribution system is the largest in Ontario and spans approximately 75% of the province through its 123,000 circuit km low-voltage distribution system.
The company was looking to improve its planning and investment optimization processes in response to requirements from the provincial regulator, the Ontario Energy Board (OEB), for longterm, risk-based asset management plans, and data-driven decisions.
Hydro One responded to this challenge by implementing several process and technology innovations. One of these was to adopt the Copperleaf™ Value Framework to enable consistent risk assessment and investment decision making aligned to its corporate strategic objectives. This was followed by the implementation of the Copperleaf C55 in 2012, which provides an enterprise-wide investment planning repository and a platform to:
- Consider the risk and financial impacts of investments
- Evaluate investments based on the value they contribute and their alignment to strategic objectives
- Coordinate competing investment plans to achieve an optimized long-term plan that meets all constraints
Designing an investment plan that enables Hydro One to balance the needs and preferences of our customers, our assets and our company, today and for the future, is extremely important to us. Copperleaf’s C55™ solution has enabled us to determine the optimal investment approach in the face of competing objectives, and make better investment decisions that support achieving our goals.