Power shortage costs: estimates and applications. Final report

Technical Report · Tue Dec 01 04:00:00 EST 1981

OSTI ID:5206336

Mosbaek, E J

This report presents estimates of costs associated with major outages in San Diego, California, and Key West, Florida. It also outlines several applications of shortage cost estimates. The total losses for the several-hour outage in San Diego were $3.12 and $2.62 per kWh for industrial and commercial users, respectively. For the 26-day shortage in Key West, the total loss for commercial and industrial users combined was $2.20 per kWh in the short-run (during and immediately after the outage) plus an additional $.19 per kWh during the subsequent year. The suggested applications of shortage cost estimates include: (1) designing and evaluating better rate design; (2) establishing optimum reliability; (3) scheduling plant expansion; (4) designing programs in load management; (5) selecting options in loss-of-load management; and (6) establishing a benchmark from which to measure improvements in the supply of electric power. The estimates and suggested applications in this report should be helpful for many decisions by utility companies, regulatory authorities, and government programs. All estimates in this report are the true cost of a shortage - they represent the willingness-to-pay to avoid a kWh of shortage. Willingness-to-pay is the most helpful measure of shortage impact because it shows the value of eliminating or reducing a shortage of electricity.

• Research Organization: Faucett (Jack) Associates, Inc., Chevy Chase, MD (USA)
• OSTI ID: 5206336
• Report Number(s): EPRI-EA-1215-Vol.3; ON: DE82902215
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CALIFORNIA
COMMERCIAL SECTOR
COST
DATA
DATA COMPILATION
DECISION MAKING
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY SHORTAGES
FEDERAL REGION IV
FEDERAL REGION IX
FLORIDA
INDUSTRIAL PLANTS
INFORMATION
LOAD MANAGEMENT
MANAGEMENT
NORTH AMERICA
NUMERICAL DATA
OUTAGES
POWER
PRODUCTION
PUBLIC UTILITIES
REGULATIONS
SHORTAGES
USA