IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v153y2018icp1038-1047.html
   My bibliography  Save this article

Improving the estimated cost of sustained power interruptions to electricity customers

Author

Listed:
  • LaCommare, Kristina Hamachi
  • Eto, Joseph H.
  • Dunn, Laurel N.
  • Sohn, Michael D.

Abstract

Electricity reliability and resiliency have become a topic of heightened interest in recent years in the United States. As utilities, regulators, and policymakers determine how to achieve optimal levels of electricity reliability while considering how best to prepare for future disruptions in power, the related issue of how much it costs when customers lose power remains a largely unanswered question. In 2006, Lawrence Berkeley National Laboratory developed an end-use based framework that estimates the cost of power interruptions in the U.S that has served as a foundational paper using the best available, yet far from perfect, information at that time. Since then, an abundance of work has been done to improve the quality and availability of information that now allow us to make a much more robust assessment of the cost of power interruptions to U.S. customers. In this work, we find that the total U.S. cost of sustained power interruptions is $44 billion per year (2015-$) −25% more than the $26 billion per year in 2002-$ (or $35 billion per year in 2015-$) estimated in our 2006 study.

Suggested Citation

  • LaCommare, Kristina Hamachi & Eto, Joseph H. & Dunn, Laurel N. & Sohn, Michael D., 2018. "Improving the estimated cost of sustained power interruptions to electricity customers," Energy, Elsevier, vol. 153(C), pages 1038-1047.
    • Handle: RePEc:eee:energy:v:153:y:2018:i:c:p:1038-1047
    DOI: 10.1016/j.energy.2018.04.082
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S036054421830690X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2018.04.082?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carnero, María Carmen & Gómez, Andrés, 2017. "Maintenance strategy selection in electric power distribution systems," Energy, Elsevier, vol. 129(C), pages 255-272.
    2. Sun, Chuanwang, 2015. "An empirical case study about the reform of tiered pricing for household electricity in China," Applied Energy, Elsevier, vol. 160(C), pages 383-389.
    3. Woo, Chi-Keung & Pupp, Roger L., 1992. "Costs of service disruptions to electricity consumers," Energy, Elsevier, vol. 17(2), pages 109-126.
    4. Keane, Dennis M. & Woo, Chi-Keung, 1992. "Using customer outage costs to plan generation reliability," Energy, Elsevier, vol. 17(9), pages 823-827.
    5. Larsen, Peter H. & LaCommare, Kristina H. & Eto, Joseph H. & Sweeney, James L., 2016. "Recent trends in power system reliability and implications for evaluating future investments in resiliency," Energy, Elsevier, vol. 117(P1), pages 29-46.
    6. LaCommare, Kristina Hamachi & Eto, Joseph H., 2006. "Cost of power interruptions to electricity consumers in the United States (US)," Energy, Elsevier, vol. 31(12), pages 1845-1855.
    7. Shayesteh, E. & Yu, J. & Hilber, P., 2018. "Maintenance optimization of power systems with renewable energy sources integrated," Energy, Elsevier, vol. 149(C), pages 577-586.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Meier, Alan & Ueno, Tsuyoshi & Pritoni, Marco, 2019. "Using data from connected thermostats to track large power outages in the United States," Applied Energy, Elsevier, vol. 256(C).
    2. Yuan, Peng & Pu, Yuran & Liu, Chang, 2021. "Improving electricity supply reliability in China: Cost and incentive regulation," Energy, Elsevier, vol. 237(C).
    3. Lenhart, Stephanie & Araújo, Kathleen, 2021. "Microgrid decision-making by public power utilities in the United States: A critical assessment of adoption and technological profiles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    4. Fremerey, Melinda & Sommer, Julian, 2023. "Standortwettbewerb im Wandel," IW-Kurzberichte 81/2023, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    5. 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).
    6. Carvallo, Juan Pablo & Frick, Natalie Mims & Schwartz, Lisa, 2022. "A review of examples and opportunities to quantify the grid reliability and resilience impacts of energy efficiency," Energy Policy, Elsevier, vol. 169(C).
    7. Abadie, Luis Ma & Chamorro, José M., 2019. "Physical adequacy of a power generation system: The case of Spain in the long term," Energy, Elsevier, vol. 166(C), pages 637-652.
    8. Ye, Bin & Jiang, Jingjing & Liu, Junguo & Zheng, Yi & Zhou, Nan, 2021. "Research on quantitative assessment of climate change risk at an urban scale: Review of recent progress and outlook of future direction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    9. Jasiūnas, Justinas & Lund, Peter D. & Mikkola, Jani & Koskela, Liinu, 2021. "Linking socio-economic aspects to power system disruption models," Energy, Elsevier, vol. 222(C).
    10. Golmohamadi, Hessam, 2022. "Demand-side management in industrial sector: A review of heavy industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    11. Judy P. Che-Castaldo & Rémi Cousin & Stefani Daryanto & Grace Deng & Mei-Ling E. Feng & Rajesh K. Gupta & Dezhi Hong & Ryan M. McGranaghan & Olukunle O. Owolabi & Tianyi Qu & Wei Ren & Toryn L. J. Sch, 2021. "Critical Risk Indicators (CRIs) for the electric power grid: a survey and discussion of interconnected effects," Environment Systems and Decisions, Springer, vol. 41(4), pages 594-615, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cheng, Y.S. & Wong, W.K. & Woo, C.K., 2013. "How much have electricity shortages hampered China's GDP growth?," Energy Policy, Elsevier, vol. 55(C), pages 369-373.
    2. Woo, C.K. & Sreedharan, P. & Hargreaves, J. & Kahrl, F. & Wang, J. & Horowitz, I., 2014. "A review of electricity product differentiation," Applied Energy, Elsevier, vol. 114(C), pages 262-272.
    3. LaCommare, Kristina Hamachi & Eto, Joseph H., 2006. "Cost of power interruptions to electricity consumers in the United States (US)," Energy, Elsevier, vol. 31(12), pages 1845-1855.
    4. Larsen, Peter H. & Boehlert, Brent & Eto, Joseph & Hamachi-LaCommare, Kristina & Martinich, Jeremy & Rennels, Lisa, 2018. "Projecting future costs to U.S. electric utility customers from power interruptions," Energy, Elsevier, vol. 147(C), pages 1256-1277.
    5. Toubeau, Jean-François & Pardoen, Lorie & Hubert, Louis & Marenne, Nicolas & Sprooten, Jonathan & De Grève, Zacharie & Vallée, François, 2022. "Machine learning-assisted outage planning for maintenance activities in power systems with renewables," Energy, Elsevier, vol. 238(PC).
    6. Odin Foldvik Eikeland & Filippo Maria Bianchi & Inga Setså Holmstrand & Sigurd Bakkejord & Sergio Santos & Matteo Chiesa, 2022. "Uncovering Contributing Factors to Interruptions in the Power Grid: An Arctic Case," Energies, MDPI, vol. 15(1), pages 1-21, January.
    7. Liu, Chang & Lin, Boqiang, 2020. "Is increasing-block electricity pricing effectively carried out in China? A case study in Shanghai and Shenzhen," Energy Policy, Elsevier, vol. 138(C).
    8. Dunn, Laurel N. & Sohn, Michael D. & LaCommare, Kristina Hamachi & Eto, Joseph H., 2019. "Exploratory analysis of high-resolution power interruption data reveals spatial and temporal heterogeneity in electric grid reliability," Energy Policy, Elsevier, vol. 129(C), pages 206-214.
    9. Lim, Kyoung-Min & Lim, Seul-Ye & Yoo, Seung-Hoon, 2014. "Estimating the economic value of residential electricity use in the Republic of Korea using contingent valuation," Energy, Elsevier, vol. 64(C), pages 601-606.
    10. Kuang, Yunming & Lin, Boqiang, 2021. "Performance of tiered pricing policy for residential natural gas in China: Does the income effect matter?," Applied Energy, Elsevier, vol. 304(C).
    11. Chunhong Sheng & Yun Cao & Bing Xue, 2018. "Residential Energy Sustainability in China and Germany: The Impact of National Energy Policy System," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    12. Li, Lanlan & Luo, Xuan & Zhou, Kaile & Xu, Tingting, 2018. "Evaluation of increasing block pricing for households' natural gas: A case study of Beijing, China," Energy, Elsevier, vol. 157(C), pages 162-172.
    13. Wang, Zhaohua & Sun, Yefei & Wang, Bo, 2020. "Policy cognition is more effective than step tariff in promoting electricity saving behaviour of residents," Energy Policy, Elsevier, vol. 139(C).
    14. Woo, Chi-Keung, 2001. "What went wrong in California's electricity market?," Energy, Elsevier, vol. 26(8), pages 747-758.
    15. Wilberforce, Tabbi & El Hassan, Zaki & Durrant, A. & Thompson, J. & Soudan, Bassel & Olabi, A.G., 2019. "Overview of ocean power technology," Energy, Elsevier, vol. 175(C), pages 165-181.
    16. Majid Hashemi & Glenn Jenkins, 2021. "The Economic Benefits of Mitigating the Risk of Unplanned Power Outages," Working Paper 1468, Economics Department, Queen's University.
    17. Elie Bouri & Joseph El Assad, 2016. "The Lebanese Electricity Woes: An Estimation of the Economical Costs of Power Interruptions," Energies, MDPI, vol. 9(8), pages 1-12, July.
    18. Woo, C.K. & Ho, T. & Shiu, A. & Cheng, Y.S. & Horowitz, I. & Wang, J., 2014. "Residential outage cost estimation: Hong Kong," Energy Policy, Elsevier, vol. 72(C), pages 204-210.
    19. Yu-Chung Tsao & Thuy-Linh Vu, 2023. "Electricity pricing, capacity, and predictive maintenance considering reliability," Annals of Operations Research, Springer, vol. 322(2), pages 991-1011, March.
    20. Sulaima, Mohamad Fani & Dahlan, Nofri Yenita & Yasin, Zuhaila Mat & Rosli, Marlinda Mohd & Omar, Zulkiflee & Hassan, Mohammad Yusri, 2019. "A review of electricity pricing in peninsular Malaysia: Empirical investigation about the appropriateness of Enhanced Time of Use (ETOU) electricity tariff," Renewable and Sustainable Energy Reviews, Elsevier, vol. 110(C), pages 348-367.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:153:y:2018:i:c:p:1038-1047. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.