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Using customer outage costs in electricity reliability planning

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  • Forte, Vincent J.
  • Putnam, Robert
  • Pupp, Roger L.
  • Woo, Chi-Keung

Abstract

We propose an economic electricity reliability planning model which includes customer outage costs (COCs). The objective is to select transmission and distribution (T&D) planning projects which minimize the total costs of providing service in the T&D system. Total costs include both traditional labor and material costs of a T&D project and customer outage costs. We apply this model to evaluate two distribution projects using outage cost data recently collected by Niagara Mohawk Power Corporation (NMPC). We compare the projects selected in this approach to the projects that would have been chosen if outage costs were not used in the analysis.

Suggested Citation

  • Forte, Vincent J. & Putnam, Robert & Pupp, Roger L. & Woo, Chi-Keung, 1995. "Using customer outage costs in electricity reliability planning," Energy, Elsevier, vol. 20(2), pages 81-87.
    • Handle: RePEc:eee:energy:v:20:y:1995:i:2:p:81-87
    DOI: 10.1016/0360-5442(94)00063-9
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    References listed on IDEAS

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    1. Mohan Munasinghe & Mark Gellerson, 1979. "Economic Criteria for Optimizing Power System Reliability Levels," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 353-365, Spring.
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    Cited by:

    1. 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).
    2. Luise Röpke, 2015. "Essays on the Integration of New Energy Sources into Existing Energy Systems," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 58.
    3. Röpke, Luise, 2013. "The development of renewable energies and supply security: A trade-off analysis," Energy Policy, Elsevier, vol. 61(C), pages 1011-1021.

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