Performance Evaluation of Electric Distribution Utilities Based on Data Envelopment Analysis

A method for benchmarking performance of electric distribution utilities based on data envelopment analysis (DEA) is presented. Basic theory of DEA is followed by case studies addressing performance analysis of 50 largest (based on MWh sales) electric distribution utilities in the USA. The results include performance efficiency, gaps in inputs and outputs of inefficient utilities, sensitivity based classification of utilities, and a gap report. Also, peer-to-peer comparison of inefficient with efficient utilities is provided. Based on these results inefficient utilities can develop strategic plans to improve performance