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Cost-benefit analysis of power system reliability: two utility case studies

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10 Author(s)
E. G. Neudorf ; Ontario Hydro, Toronto, Ont., Canada ; D. L. Kiguel ; G. A. Hamoud ; B. Porretta
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There is an emerging recognition that utility investments and other decisions that affect electric service reliability should be explicitly evaluated on the basis of their cost and benefit implications. A cost-benefit approach that quantifies the reliability benefits of alternatives in terms of the reduction in costs resulting from unserved energy enables the evaluation of generation and transmission capacity additions on a consistent, economic basis. This approach has been applied to two utility case studies. In a case study for Pacific Gas and Electric Company, it was used to evaluate three options for maintaining reliability in a major load center-two involving local generation, and the third, a new 230 kV transmission connection. In a case study for Duke Power Company, the approach was used to evaluate alternative designs for proposed additions to a transmission station. This paper describes the methodology and presents the two utility studies

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IEEE Transactions on Power Systems  (Volume:10 ,  Issue: 3 )