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Title: Cost-benefit analysis of power system reliability: Determination of interruption costs

Technical Report ·
OSTI ID:6840006
 [1]
  1. RCG/Hagler, Bailly, Inc., Washington, DC (USA)

This study examines and characterizes the impacts and costs of service interruptions to customers. Alternative methods to measure interruption costs are reviewed, and the major steps involved in conducting an interruption cost measurement study are described. The applications of interruption cost data in reliability planning are discussed, and the results of a survey of US and Canadian utilities on reliability planning practices are evaluated. The study also documents two case studies, one for the Bonneville Power Administration and one for a major utility in the southeast US. For these studies, surveys of households and commercial and industrial firms were conducted using a survey instrument tailored to each segment. The survey data were statistically analyzed to develop estimates of customer interruption costs that are representative of the customer mix'' at typical delivery points in the network. This study also documents the survey methodology, and presents summary statistics that describe the survey respondents' experience with service reliability and power quality. Finally, the results of econometric analyses of the survey data are described. These analyses identify the subset of variables that best explain the variation in interruption costs across different customer types. 10 figs., 87 tabs.

Research Organization:
Electric Power Research Inst., Palo Alto, CA (USA); RCG/Hagler, Bailly, Inc., Washington, DC (USA)
Sponsoring Organization:
EPRI
OSTI ID:
6840006
Report Number(s):
EPRI-EL-6791-Vol.3
Country of Publication:
United States
Language:
English