TY - CPAPER
KW - Power system economics
KW - Electricity reliability trends
KW - Power system reliability publications
KW - Value of service reliability
AU - Michael J Sullivan
AU - Matthew G Mercurio
AU - Josh A Schellenberg
AU - Joseph H Eto
AB - <p>A robust methodology for estimating the value of service reliability improvements is presented. Although econometric models for estimating value of service (interruption costs) have been established and widely accepted, analysts often resort to applying relatively crude interruption cost estimation techniques in assessing the economic impacts of transmission and distribution investments. This paper first shows how the use of these techniques can substantially impact the estimated value of service improvements. A simple yet robust methodology that does not rely heavily on simplifying assumptions is presented. When a smart grid investment is proposed, reliability improvement is one of the most frequently cited benefits. Using the best methodology for estimating the value of this benefit is imperative. By providing directions on how to implement this methodology, this paper sends a practical, usable message to the industry.</p>
BT - IEEE Power and Energy Society General Meeting
C2 - LBNL-3592E
CY - Minneapolis, MN
DA - 07/2010
DO - 10.1109/PES.2010.5589316
N2 - <p>A robust methodology for estimating the value of service reliability improvements is presented. Although econometric models for estimating value of service (interruption costs) have been established and widely accepted, analysts often resort to applying relatively crude interruption cost estimation techniques in assessing the economic impacts of transmission and distribution investments. This paper first shows how the use of these techniques can substantially impact the estimated value of service improvements. A simple yet robust methodology that does not rely heavily on simplifying assumptions is presented. When a smart grid investment is proposed, reliability improvement is one of the most frequently cited benefits. Using the best methodology for estimating the value of this benefit is imperative. By providing directions on how to implement this methodology, this paper sends a practical, usable message to the industry.</p>
PB - IEEE
PP - Minneapolis, MN
PY - 2010
EP - 5
T2 - IEEE Power and Energy Society General Meeting
T3 - IEEE Power and Energy Society General Meeting
TI - How to Estimate the Value of Service Reliability Improvements
ER -