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Improving the estimated cost of sustained power interruptions to electricity customers

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  • LaCommare, Kristina Hamachi
  • Eto, Joseph H.
  • Dunn, Laurel N.
  • Sohn, Michael D.

Abstract

Electricity reliability and resiliency have become a topic of heightened interest in recent years in the United States. As utilities, regulators, and policymakers determine how to achieve optimal levels of electricity reliability while considering how best to prepare for future disruptions in power, the related issue of how much it costs when customers lose power remains a largely unanswered question. In 2006, Lawrence Berkeley National Laboratory developed an end-use based framework that estimates the cost of power interruptions in the U.S that has served as a foundational paper using the best available, yet far from perfect, information at that time. Since then, an abundance of work has been done to improve the quality and availability of information that now allow us to make a much more robust assessment of the cost of power interruptions to U.S. customers. In this work, we find that the total U.S. cost of sustained power interruptions is $44 billion per year (2015-$) −25% more than the $26 billion per year in 2002-$ (or $35 billion per year in 2015-$) estimated in our 2006 study.

Suggested Citation

  • LaCommare, Kristina Hamachi & Eto, Joseph H. & Dunn, Laurel N. & Sohn, Michael D., 2018. "Improving the estimated cost of sustained power interruptions to electricity customers," Energy, Elsevier, vol. 153(C), pages 1038-1047.
    • Handle: RePEc:eee:energy:v:153:y:2018:i:c:p:1038-1047
    DOI: 10.1016/j.energy.2018.04.082
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    References listed on IDEAS

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    Cited by:

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    3. Woo, C.K. & Tishler, A. & Zarnikau, J. & Chen, Y., 2021. "Average residential outage cost estimates for the lower 48 states in the US," Energy Economics, Elsevier, vol. 98(C).
    4. Carvallo, Juan Pablo & Frick, Natalie Mims & Schwartz, Lisa, 2022. "A review of examples and opportunities to quantify the grid reliability and resilience impacts of energy efficiency," Energy Policy, Elsevier, vol. 169(C).
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    6. Jasiūnas, Justinas & Lund, Peter D. & Mikkola, Jani & Koskela, Liinu, 2021. "Linking socio-economic aspects to power system disruption models," Energy, Elsevier, vol. 222(C).
    7. Judy P. Che-Castaldo & Rémi Cousin & Stefani Daryanto & Grace Deng & Mei-Ling E. Feng & Rajesh K. Gupta & Dezhi Hong & Ryan M. McGranaghan & Olukunle O. Owolabi & Tianyi Qu & Wei Ren & Toryn L. J. Sch, 2021. "Critical Risk Indicators (CRIs) for the electric power grid: a survey and discussion of interconnected effects," Environment Systems and Decisions, Springer, vol. 41(4), pages 594-615, December.
    8. Meier, Alan & Ueno, Tsuyoshi & Pritoni, Marco, 2019. "Using data from connected thermostats to track large power outages in the United States," Applied Energy, Elsevier, vol. 256(C).
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    10. Abadie, Luis Ma & Chamorro, José M., 2019. "Physical adequacy of a power generation system: The case of Spain in the long term," Energy, Elsevier, vol. 166(C), pages 637-652.
    11. Golmohamadi, Hessam, 2022. "Demand-side management in industrial sector: A review of heavy industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).

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