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Local and utility-wide cost allocations for a more equitable wildfire-resilient distribution grid

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Listed:
  • Zhecheng Wang

    (Stanford University
    Stanford University)

  • Michael Wara

    (Stanford University)

  • Arun Majumdar

    (Stanford University
    Stanford University)

  • Ram Rajagopal

    (Stanford University
    Stanford University)

Abstract

Climate-induced extreme weather conditions make electricity infrastructure more vulnerable. They increase the risk of power-line-ignited wildfires which can, in turn, jeopardize electric power delivery. Here, leveraging machine learning, we show that lower-income communities in California not only have lower fractions of power distribution lines undergrounded, but overhead lines and poles in their neighbourhoods are also more vulnerable to wildfires. Should they bear the cost of undergrounding fire-prone lines themselves, they would have to pay a disproportionately higher cost per household. We propose a cost allocation scheme with an income threshold below which the cost is borne by utility-wide ratepayers and above which the cost is borne locally. This scheme can not only minimize the average of undergrounding costs per household as a share of income, but also homogenize such cost–income ratios across communities. Our research demonstrates the opportunity to appropriately integrate existing policies to make electricity infrastructure affordable, equitable and reliable amidst climate change.

Suggested Citation

  • Zhecheng Wang & Michael Wara & Arun Majumdar & Ram Rajagopal, 2023. "Local and utility-wide cost allocations for a more equitable wildfire-resilient distribution grid," Nature Energy, Nature, vol. 8(10), pages 1097-1108, October.
  • Handle: RePEc:nat:natene:v:8:y:2023:i:10:d:10.1038_s41560-023-01306-8
    DOI: 10.1038/s41560-023-01306-8
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