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Using customer outage costs to plan generation reliability

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  • Keane, Dennis M.
  • Woo, Chi-Keung

Abstract

There is a general consensus that the 1990s will be a decade characterized by generation capacity shortages, at least in portions of the U.S. This poses the question “should the utility industry be committed to maintain its reserve margin at the historical level?” To answer this question, we develop and discuss a simple model of reliability planning, which incorporates customer value of service (VOS) information. Next, we describe a more sophisticated approach that was recently implemented.

Suggested Citation

  • Keane, Dennis M. & Woo, Chi-Keung, 1992. "Using customer outage costs to plan generation reliability," Energy, Elsevier, vol. 17(9), pages 823-827.
    • Handle: RePEc:eee:energy:v:17:y:1992:i:9:p:823-827
    DOI: 10.1016/0360-5442(92)90100-E
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    Cited by:

    1. 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.
    2. Woo, C.K. & King, M. & Tishler, A. & Chow, L.C.H., 2006. "Costs of electricity deregulation," Energy, Elsevier, vol. 31(6), pages 747-768.
    3. 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.
    4. 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.
    5. Tishler, A. & Woo, C.K., 2006. "Likely failure of electricity deregulation: Explanation with application to Israel," Energy, Elsevier, vol. 31(6), pages 845-856.
    6. 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.

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