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Measurement and application of customer interruption costs/value of service for cost-benefit reliability evaluation: some commonly raised issues

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1 Author(s)
A. P. Sanghvi ; RCG/Hagler, Bailly Inc., Washington, DC, USA

This work deals with the customer perspective of service reliability. In particular, given the changes in the electric utility industry's cost structure in recent years, there is a growing feeling that investments related to the provision of electric service reliability should be carefully evaluated as regards their cost and benefit implications. Such an explicit cost-benefit analysis provides the basis for answering the economic question of how much reliability is adequate from the customer's perspective

Published in:

IEEE Transactions on Power Systems  (Volume:5 ,  Issue: 4 )