Value-based power system reliability planning

In a competitive energy market, in which power supply reliability can influence customer purchasing decisions, electric utilities throughout the world are rapidly recognizing that they cannot ignore customer preferences. Today's energy market is characterized by intense price competition, and electric utilities are faced with new challenges of large debts, budget constraints, safety, environment and economic issues, lower load growth than in the past, need for more involvement of public at large in the planning and design process, and more competitive nonconventional suppliers of electricity. In addition, in a deregulated competitive energy market, electric utilities are under conflicting pressures of providing even higher standards of service reliability and holding the line on rates. Value-based system facility planning offers a rational response to these conflicting customer demands. This paper presents two case studies to illustrate the basic concepts and applications of value-based power system planning. The paper also presents a methodology for determining the unique composite customer cost of interruptions (i.e. damage functions) for changing area system network configurations. These techniques are presently being used in the decision-making processes at Alberta Power Limited, Edmonton, Alta., Canada.