An Insurance Perspective on U.S. Electric Grid Disruption Costs

Mills, Evan; Jones, R. B.

doi:10.1057/gpp.2016.9

Cited by 17 publications

(5 citation statements)

References 12 publications

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“…It is also important to conduct additional research into the cost of interruptions to different customer classes, including how risks may be distributed across different socio-economic populations. Evaluating the interruption costs to customers through an insurance perspective is an important new research angle worth exploring further [26]. And conducting a national interruption cost survey, using a consistent framework, would improve confidence in the assumptions about the value of reliability.…”

Section: Resultsmentioning

confidence: 99%

Projecting future costs to U.S. electric utility customers from power interruptions

Larsen

Boehlert

Eto

et al. 2018

Energy

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This analysis integrates regional models of power system reliability, output from atmosphereocean general circulation models, and results from the Interruption Cost Estimate (ICE) Calculator to project long-run costs to electric utility customers from power interruptions under different future severe weather and electricity system scenarios. We discuss the challenges when attempting to model long-run costs to utility customers including the use of imperfect metrics to measure severe weather. Despite these challenges, initial findings show that discounted cumulative customer costs, through the

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Section: Resultsmentioning

confidence: 99%

Projecting future costs to U.S. electric utility customers from power interruptions

Larsen

Boehlert

Eto

et al. 2018

Energy

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“…Revealed Preference Methods for Estimating Customer Power Interruption Costs involve reviewing what customers have actually done to prepare for and respond to power interruptions [45]. Another example is a review of premiums paid by customers for business interruption insurance [46].…”

Section: B the Economic Costs To Customers Of Power Interruptions Res...mentioning

confidence: 99%

Methods for Analysis and Quantification of Power System Resilience

Stanković

Tomsovic

et al. 2023

IEEE Trans. Power Syst.

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This paper summarizes the report prepared by an IEEE PES Task Force. Resilience is a fairly new technical concept for power systems, and it is important to precisely delineate this concept for actual applications. As a critical infrastructure, power systems have to be prepared to survive rare but extreme incidents (natural catastrophes, extreme weather events, physical/cyber-attacks, equipment failure cascades, etc.) to guarantee power supply to the electricity-dependent economy and society. Thus, resilience needs to be integrated into planning and operational assessment to design and operate adequately resilient power systems. Quantification of resilience as a key performance indicator is important, together with costs and reliability. Quantification can analyze existing power systems and identify resilience improvements in future power systems. Given that a 100% resilient system is not economic (or even technically achievable), the degree of resilience should be transparent and comprehensible. Several gaps are identified to indicate further needs for research and development.

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“…They have studied costs from an insurance perspective, which gives a new understanding of where the cost burden truly lies. 57 They have developed methods to estimate the costs of interruptions; here, they also loosely consider resilience, but focus on its relation to storms, natural disasters, and cybersecurity events. 58 59 They also examine the costs of interruptions to consumers 60 61 and the value of service reliability for consumers.…”

Section: May 2021 Inl/ext-21-62149mentioning

confidence: 99%

Distributed Wind Resilience Metrics for Electric Energy Delivery Systems: Comprehensive Literature Review

Culler

Bukowski

Gentle

et al. 2021

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W hile most people have a general concept of what it means to be "resilient, " an examination of definitions from different sources reveals that there are key commonalities, but key differences as well. The lack of a generally accepted definition and application of resilience extends to electric energy delivery systems. Without an accepted definition, it is difficult to implement programs or processes to improve resiliency. In this paper, existing work from industry, regulatory bodies, and national laboratories to define and apply resilience to electric energy delivery systems is studied to understand the key components to define resilience and better understand associated metrics. This understanding is then applied to distributed wind for a specific example of how resilience of a system is affected by the technologies and generation sources used to support it.A key finding is that there is no "one size fits all" process for resilience. Each system has a "distinctiveness" characteristic, which qualifies the possibility of differences in resilience due to different threats, geography, stakeholders, risk tolerance, and mitigations. The distinctiveness characteristic extends to distributed wind technologies and applications where different configurations may lend the distributed wind assets to contribute to the resilience of each system in a variety of ways.The findings of this research demonstrate the need for a resilience framework that can be readily applied by stakeholders to improve resilience based on the specific system, threat, risk tolerance and stakeholders.

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An Insurance Perspective on U.S. Electric Grid Disruption Costs

Cited by 17 publications

References 12 publications

Projecting future costs to U.S. electric utility customers from power interruptions

Projecting future costs to U.S. electric utility customers from power interruptions

Methods for Analysis and Quantification of Power System Resilience

Distributed Wind Resilience Metrics for Electric Energy Delivery Systems: Comprehensive Literature Review

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