Value of service reliability

The authors present the value of service (VOS) reliability evaluation approach, which explicitly incorporates into the planning process customer choices regarding reliability 'worth' and service costs. Using the least-cost planning framework and taking advantage of the recent advances in the quantification of outage costs, this approach determines the optimal level of reliability for the utility and its customers. The approach considers system operational measures-the so-called emergency actions-that the operators invoke in times of dwindling reserves. Information on customer outage costs associated with such actions is incorporated using a probabilistic framework. This approach permits utilities to plan for levels of reliability commensurate with the customers' willingness to pay. The application of this methodology to planning problems is discussed. Numerical results for a large utility are presented.<
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