IDEAS home Printed from https://ideas.repec.org/p/isu/genres/10789.html
   My bibliography  Save this paper

The Cost of Power Interruptions in the Industrial Sector: Estimates Derived from Interruptible Service Programs

Author

Listed:
  • Herriges, Joseph A.
  • Caves, Douglas W.
  • Windle, R. J.

Abstract

The electric power industry has become increasingly interested in the value customers place upon service reliability, with the demand for reliability couched in terms of outage or shortage costs. The survey-based method of eliciting these costs dominates the literature. This paper explores and demonstrates a method for estimating outage and shortage costs based upon behavioral data. A discrete choice model is developed for estimating shortage costs using observed decisions of industrial customers regarding participation in interruptible service programs. The resulting shortage cost estimates of $4.00 per kWh unserved for a one-hour interruption are consistent with previous survey-based estimates.

Suggested Citation

  • Herriges, Joseph A. & Caves, Douglas W. & Windle, R. J., 1992. "The Cost of Power Interruptions in the Industrial Sector: Estimates Derived from Interruptible Service Programs," Staff General Research Papers Archive 10789, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:10789
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    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:isu:genres:10789. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    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.