Kenneth H. Tiedemann
Energy managemnt, Power quality, Reliability, Electricity
With increasing deregulation of electricity markets, increased emphasis is being placed on electric service reliability. The objectives of this paper are to: first, provide new estimates of the value of reliability for commercial customers; second, model the determinants of the value of reliability using multivariate regression analysis; and, third, compare the results of this work with other studies of the value of reliability for commercial customers. Key findings are as follows. First, costs per outage vary by time of day, season of the year and length of the outage. Average cost per outage varies from $22.27 for a twenty minute outage at 8Am in the summer to $628.80 for an 8 hour outage in the summer. Second, regression models successfully explain 97% of the variation in costs per outage. Third, costs per kWh lost also vary by length of the outage, time of day and season of the year. Average cost per kWh varies from $1.17 for an 8 hour outage at 8am in the winter to $231.50 for a twenty minute outage at 4pm in the summer. Fourth, multivariate regression models successfully explain 556% of the variation in cost per lost kilowatt hour.
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