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Client Projects
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Asset Management Process Development and Implementation
Hydro Ottawa, Limited

Ottawa, Ontario


Hydro Ottawa is a regulated private utility with an average load of 1,200 MW serving 275,000 customers in Ottawa, Ontario, and the surrounding area. BIS staff assisted the electrical distribution operations arm of Hydro Ottawa with development and implementation of an asset management process for planning and justifying capital and maintenance expenditures internally and to its regulatory board.


The first phase of this project formalized Hydro Ottawa's vision for its asset management process and its short- and long-term goals and objectives. Based on this, the team developed the framework for an overall asset management process and performed a gap analysis identifying areas where significant changes were needed in data collection, analysis, communication, or other areas to effectively implement the process.

The next phase was an application of the asset management process to evaluate spending requirements for select asset classes, starting with station transformers and wood poles. The process outlined in phase 1 was developed in more detail as it was used to generate capital spending programs for these asset classes. These capital programs are optimized replacement and rehabilitation plans for the assets over the 20-year planning horizon, considering condition, risk, corporate values, sustainability, and other drivers. This phase also included a more detailed plan for closing the gaps identified in both phases.


The asset management process uses risk to develop an economically optimal plan for future replacements. Risk includes the effects on customers of outages, and environmental and safety effects. The process also includes assessing the health and criticality of the population and developing a strategy based on least-cost principles for each asset.

The spending plans developed using this process were part of Hydro Ottawa’s most recent rate filing with the Ontario Electric Board. Hydro Ottawa’s experience with rate filings has been that it is difficult to receive funding for general replacement and rehabilitation activities. However in this case the spending plans were accepted by the board and were part of the basis for a rate increase.

Date Completed: 2005

Development of overall Asset Management process. Capital planning support based on condition and risk. Early gains from immediate implementation.
Key Services
Justification for equipment replacement programs before regulator. Support for needed rate increase. Knowledge of condition of assets.
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