Cost of electric power interruptions in the agricultural sector-statistical analysis

The authors describe the methodology and results of statistical analyses of data collected to estimate the losses incurred by the farm sector as a result of electric power system interruptions. The project was sponsored by the Canadian Electrical Association and employed a postal survey to estimate the costs to electric customers resulting from electric power outages. The survey included interruption cost estimation questions based on three principles: direct estimate of losses, an economic principle of substitution, and a willingness-to-accept method. The results of these questions together with the others included in the questionnaire were subjected to rigorous statistical analysis. The analysis presented unexpected challenges due to the peculiarities of the data. The difficulties associated with data analysis, the methodology used, and the results are discussed.<>