Abstract
Electricity outage cost (EOC) estimates ($ per kWh unserved) are essential input data for optimal reliability planning and efficient pricing of electricity services. Based on the 2019-2020 market data published by two US government agencies for the lower 48 states, this paper’s EOC estimates by census region and year are median values of $1.39 to $2.93 per kWh unserved, well below the estimate of $9 per kWh unserved adopted by Texas for optimal reliability planning. The policy implications of adopting our lower EOC estimate are (a) a reduction in an electric grid’s optimal planning reserve to improve the grid’s cost efficiency; and (b) a decline in the grid’s marginal cost-based retail price to encourage welfare-enhancing end-use consumption.
Original language | English |
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Pages (from-to) | 1-5 |
Number of pages | 5 |
Journal | Energy Research Letters |
Volume | 5 |
Issue number | 2 |
DOIs | |
Publication status | Published - 10 May 2024 |
Scopus Subject Areas
- Energy (miscellaneous)
User-Defined Keywords
- Electricity outage costs
- Market-based estimation
- United States