Value-based system facility planning - a rational response to conflicting customer and regulatory demands

In a competitive energy market in which power supply reliability influence customer's purchasing decisions, utilities throughout the world are rapidly recognizing that they cannot ignore customer preferences. Reliability of electric service should be based on balancing the costs to a utility and the value of the benefits received by its customers. The customer survey approach is based on the assumption that customers are in the best position to understand how interruptions impact their activities that depend on electricity supply. A challenge to electric utilities is to increase the market value of the services they provide with the right amount of reliability and to lower its costs of operation, maintenance, and construction to provide lower rates for customers. Lastly, the value-based reliability cost-benefit assessment helps electric utilities to achieve the goal of providing reliable energy service at the lowest possible cost, which their customer values.