A valuation framework for customers impacted by extreme temperature-related outages

Yu, Min Gyung; Mukherjee, Monish; Poudel, Shiva; Bender, Sadie R.; Hanif, Sarmad; Hardy, Trevor D.; Reeve, Hayden M.

doi:10.1016/j.apenergy.2024.123450

A valuation framework for customers impacted by extreme temperature-related outages

Journal Article · Tue May 21 00:00:00 EDT 2024 · Applied Energy

DOI:https://doi.org/10.1016/j.apenergy.2024.123450· OSTI ID:2496213

^[1]; Mukherjee, Monish ^[1]; ^[1]; ^[1]; Hanif, Sarmad ^[2]; ^[1]; Reeve, Hayden M. ^[1]

Pacific Northwest National Laboratory (PNNL), Richland, WA (United States)
Electric Power Research Institute, Washington, DC (United States)

Extreme temperature outages can lead to not just economic losses but also various non-energy impacts (NEI), such as increased mortality rates, property damage, and reduced productivity, due to significant degradation of indoor operating conditions caused by service disruptions. However, existing resilience assessment approaches lack specificity for extreme temperature conditions. They often overlook temperature-related mortality and neglect the customer characteristics and grid response in the calculation, despite the significant influence of these factors on NEI-related economic losses. This paper aims to address these gaps by introducing a comprehensive framework to estimate the impact of resilience enhancement not only on the direct economic losses incurred by customers but also on potential NEI, including mortality and the value of statistical life during extreme temperature-related outages. The proposed resilience valuation integrates customer characteristics and grid response variables based on a scalable grid simulation environment. This study adopts a holistic approach to quantify customer-oriented economic impacts, utilizing probabilistic loss scenarios that incorporate health-related factors and damage/loss models as a function of exposure for valuation. The proposed methodology is demonstrated through comparative resilient outage planning, using grid response models emulating a Texas weather zone during the 2021 winter storm Uri. The case study results show that enhanced outage planning with hardened infrastructure can improve the system resilience and thereby reduce the relative risk of mortality by 16% and save the total costs related to non-energy impacts by 74%. In conclusion, these findings underscore the efficacy of the framework by assessing the financial implications of each case, providing valuable insights for decision-makers and stakeholders involved in extreme-weather related resilience planning for risk management and mitigation strategies.

View Accepted Manuscript (DOE)

Research Organization:: Pacific Northwest National Laboratory (PNNL), Richland, WA (United States)

Sponsoring Organization:: USDOE Office of Electricity (OE)

Grant/Contract Number:: AC05-76RL01830

OSTI ID:: 2496213

Report Number(s):: PNNL-SA--191343

Journal Information:: Applied Energy, Journal Name: Applied Energy Vol. 368; ISSN 0306-2619

Publisher:: ElsevierCopyright Statement

Country of Publication:: United States

Language:: English

References (27)

Epidemiology and outcomes of acute respiratory failure in the United States, 2001 to 2009: A national survey Stefan, Mihaela S.; Shieh, Meng‐Shiou; Pekow, Penelope S. Journal of Hospital Medicine, Vol. 8, Issue 2 https://doi.org/10.1002/jhm.2004	journal	January 2013
The national risk index: establishing a nationwide baseline for natural hazard risk in the US Zuzak, Casey; Mowrer, Matthew; Goodenough, Emily Natural Hazards, Vol. 114, Issue 2 https://doi.org/10.1007/s11069-022-05474-w	journal	July 2022
Valuing mortality risk in the time of COVID-19 Hammitt, James K. Journal of Risk and Uncertainty, Vol. 61, Issue 2 https://doi.org/10.1007/s11166-020-09338-1	journal	October 2020
Mortality risk attributable to high and low ambient temperature: a multicountry observational study Gasparrini, Antonio; Guo, Yuming; Hashizume, Masahiro The Lancet, Vol. 386, Issue 9991 https://doi.org/10.1016/S0140-6736(14)62114-0	journal	July 2015
Analyzing at-scale distribution grid response to extreme temperatures Hanif, Sarmad; Mukherjee, Monish; Poudel, Shiva Applied Energy, Vol. 337 https://doi.org/10.1016/j.apenergy.2023.120886	journal	May 2023
Assessing thermal resilience of an assisted living facility during heat waves and cold snaps with power outages Sheng, Maggie; Reiner, Michael; Sun, Kaiyu Building and Environment, Vol. 230 https://doi.org/10.1016/j.buildenv.2023.110001	journal	February 2023
The Cost of ARDS Boucher, Paul E.; Taplin, John; Clement, Fiona Chest, Vol. 161, Issue 3 https://doi.org/10.1016/j.chest.2021.08.057	journal	March 2022
Damage functions for the cold regions and their applications in hygrothermal simulations of different types of building structures Kočí, Jan; Maděra, Jiří; Keppert, Martin Cold Regions Science and Technology, Vol. 135 https://doi.org/10.1016/j.coldregions.2016.12.004	journal	March 2017
Estimating and projecting the effect of cold waves on mortality in 209 US cities Wang, Yan; Shi, Liuhua; Zanobetti, Antonella Environment International, Vol. 94 https://doi.org/10.1016/j.envint.2016.05.008	journal	September 2016
Heat wave impact on morbidity and mortality in the elderly population: A review of recent studies Oudin Åström, Daniel; Bertil, Forsberg; Joacim, Rocklöv Maturitas, Vol. 69, Issue 2 https://doi.org/10.1016/j.maturitas.2011.03.008	journal	June 2011
Resilience assessment and enhancement evaluation of power distribution systems subjected to ice storms Hou, Guangyang; Muraleetharan, Kanthasamy K.; Panchalogaranjan, Vinushika Reliability Engineering & System Safety, Vol. 230 https://doi.org/10.1016/j.ress.2022.108964	journal	February 2023
Relationship between winter temperature and mortality in Seoul, South Korea, from 1994 to 2006 Ha, Jongsik; Yoon, Joungho; Kim, Ho Science of The Total Environment, Vol. 407, Issue 7 https://doi.org/10.1016/j.scitotenv.2008.12.029	journal	March 2009
The quest to quantify the value of lost load: A critical review of the economics of power outages Gorman, Will The Electricity Journal, Vol. 35, Issue 8 https://doi.org/10.1016/j.tej.2022.107187	journal	October 2022
Profitability and investment risk of Texan power system winterization Gruber, Katharina; Gauster, Tobias; Laaha, Gregor Nature Energy, Vol. 7, Issue 5 https://doi.org/10.1038/s41560-022-00994-y	journal	April 2022
Increased frequency of and population exposure to extreme heat index days in the United States during the 21st century Dahl, Kristina; Licker, Rachel; Abatzoglou, John T. Environmental Research Communications, Vol. 1, Issue 7 https://doi.org/10.1088/2515-7620/ab27cf	journal	July 2019
Temperature and Mortality in 11 Cities of the Eastern United States Curriero, F. C. American Journal of Epidemiology, Vol. 155, Issue 1 https://doi.org/10.1093/aje/155.1.80	journal	January 2002
Modifiers of the Temperature and Mortality Association in Seven US Cities O'Neill, M. S. American Journal of Epidemiology, Vol. 157, Issue 12 https://doi.org/10.1093/aje/kwg096	journal	June 2003
Customer cost of electric service interruptions Wacker, G.; Billinton, R. Proceedings of the IEEE, Vol. 77, Issue 6 https://doi.org/10.1109/5.29332	journal	June 1989
Power System Resilience: Current Practices, Challenges, and Future Directions Bhusal, Narayan; Abdelmalak, Michael; Kamruzzaman, Md IEEE Access, Vol. 8 https://doi.org/10.1109/ACCESS.2020.2968586	journal	January 2020
Approximate Methods for Event-Based Customer Interruption Cost Evaluation Billinton, R.; Wangdee, W. IEEE Transactions on Power Systems, Vol. 20, Issue 2 https://doi.org/10.1109/TPWRS.2005.846098	journal	May 2005
Improving Societal Outcomes of Extreme Weather in a Changing Climate: An Integrated Perspective Morss, Rebecca E.; Wilhelmi, Olga V.; Meehl, Gerald A. Annual Review of Environment and Resources, Vol. 36, Issue 1 https://doi.org/10.1146/annurev-environ-060809-100145	journal	November 2011
Heat Waves in the United States: Mortality Risk during Heat Waves and Effect Modification by Heat Wave Characteristics in 43 U.S. Communities Anderson, G. Brooke; Bell, Michelle L. Environmental Health Perspectives, Vol. 119, Issue 2 https://doi.org/10.1289/ehp.1002313	journal	February 2011
The potential impacts of climate variability and change on temperature-related morbidity and mortality in the United States. McGeehin, M. A.; Mirabelli, M. Environmental Health Perspectives, Vol. 109, Issue suppl 2 https://doi.org/10.1289/ehp.109-1240665	journal	May 2001
Temporal Variation in Heat–Mortality Associations: A Multicountry Study Gasparrini, Antonio; Guo, Yuming; Hashizume, Masahiro Environmental Health Perspectives, Vol. 123, Issue 11 https://doi.org/10.1289/ehp.1409070	journal	November 2015
Predictors of in-hospital mortality in stroke patients Ranasinghe, Vindya Shalini; Pathirage, Manoji; Gawarammana, Indika Bandara PLOS Global Public Health, Vol. 3, Issue 2 https://doi.org/10.1371/journal.pgph.0001278	journal	February 2023
Updated Value of Service Reliability Estimates for Electric Utility Customers in the United States Sullivan, Michael; Schellenberg, Josh; Blundell, Marshall https://doi.org/10.2172/1172643	report	January 2015
Susceptibility to mortality related to temperature and heat and cold wave duration in the population of Stockholm County, Sweden Rocklöv, Joacim; Forsberg, Bertil; Ebi, Kristie Global Health Action, Vol. 7, Issue 1 https://doi.org/10.3402/gha.v7.22737	journal	March 2014

Similar Records

Techno-Economic Analysis of Data-Driven and Transactive Approaches for Resilience Enhancement

Journal Article · Thu Jan 16 19:00:00 EST 2025 · IEEE Transactions on Industry Applications · OSTI ID:2575097

Resilient Grid Operational Strategies

Technical Report · Tue Feb 28 23:00:00 EST 2017 · OSTI ID:1345917

RePOWERD: Restoration of Power Outage from Wide-area Severe Weather Disruptions

Technical Report · Mon Jan 31 23:00:00 EST 2022 · OSTI ID:1887668

Related Subjects

24 POWER TRANSMISSION AND DISTRIBUTION
Customer interruption costs
Extreme temperatures
Power distribution control
Resilience
Valuation

A valuation framework for customers impacted by extreme temperature-related outages

Citation Formats

References (27)

Similar Records

Related Subjects