Premium Power Valuation Method Based on Customer Perception of Utility for High-Technology Manufacturing Customers

Many devices and processes installed at the high-technology manufacturing customer side are very sensitive to voltage sags and short-time interruptions. To meet the customers' requirements for power quality, premium power is needed with a large amount of investment. The investment of premium power depends on the premium power value (PPV) perceived by the customers. One valuation method of PPV based on customers' perceived power utility (PPU) and willingness to pay (WTP) is proposed in this study. The quantitative method of the power utility and the PPU has been studied in detail. Taking customers' loss aversion psychology to economic losses into account, the quantitative assessment methods of the customer WTP and PPV have also been proposed. As a case study, one field investigation to five high-technology manufacturing customers located in one High Technology Park in Western China has been done. With the help of the field-recorded voltage sag data and customer economic losses data over the last 10 years, the proposed method was applied to valuate these five customers. The valuated results compared with investigated results proved that the proposed method is correct, rational, and feasible.