Interruption costs, customer satisfaction and expectations for service reliability

Sullivan, Michael J.; Suddeth, B.N.; Vardell, T.; Vojdani, Ali

doi:10.1109/59.496185

Cited by 157 publications

(49 citation statements)

References 3 publications

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“…This indicates that there is a cost pertaining to GENCOs' coordination, which is imposed by the ISO to ensure an appropriate distribution of maintenance outages over the period. Along with the competitive prices, GENCOs should also play an important role in delivering high reliability and customer care to enhance their corporate reputation and brand value by acting in a responsible manner which can make a significant impact on customer retention [6,33]. Cai et al [6] analysed GENCOs' customers 2 who would switch to a competitor under various price discounts and service attributes (reliability, renewable power, energy conservation assistance, and customer service).…”

Section: Related Workmentioning

confidence: 99%

Modelling generator maintenance scheduling costs in deregulated power markets

Dahal

Al-Arfaj²,

Paudyal

2015

European Journal of Operational Research

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Generating companies use the maintenance cost function as the sole or main objective for creating the maintenance schedule of power generators. Usually only maintenance activities related costs are considered to derive the cost function. However, in deregulated markets, maintenance related costs alone do not represent the full costs of generators. This paper models various cost components that affect the maintenance activities in deregulated power markets. The costs that we model include direct and indirect maintenance, failures, interruptions, contractual compensation, rescheduling, and market opportunity. The loss of firm's reputation and selection of loyalty model are also considered using the Analytic Hierarchy Process (AHP) within an opportunity cost model. A case study is used to illustrate the modelling activities. The enhanced model is utilised in generator maintenance scheduling cases. The experimental results demonstrate the importance and impact of market related costs in maintenance schedules.

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Section: Related Workmentioning

confidence: 99%

Modelling generator maintenance scheduling costs in deregulated power markets

Dahal

Al-Arfaj²,

Paudyal

2015

European Journal of Operational Research

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“…For example see: (Munasinghe, 1979), (Burns and Gross, 1990), (Sanghvi et al, 1991), (Allan and Billinton, 1992), (Sullivan et al, 1996), (Sullivan and Keane, 1995), , , , (Woo and Train, 1988), (Matsukawa and Fujii, 1994), (Dalton et al, 1996), (de Nooij et al, 2006) and2008), (Ghajar and Billinton, 2005), , (Wangdee and Billinton, 2004), (Reitz and Sen, 2006) and (Rose et al, 2007) (LaCommare andEto, 2006) Value-based planning is designed to match the level of investment in reliability with the societal benefit of the improvement in reliability. The use of value-based planning requires a method for estimating customers' economic value of service reliability.…”

Section: Summary Of Data and Overview Of Analysismentioning

confidence: 99%

Estimated Value of Service Reliability for Electric Utility Customers in the United States

Sullivan¹,

Mercurio²,

Schellenberg³

2009

Self Cite

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“…a single 1 hour outage is less costly than the sum of sixty 1 minute outages) Lehtonen & Lemstroem (1995) 4 Tollefson et al (1994) 5 Sullivan et al (1996) 6 Gilmer & Mack (1983) 7 Sanghvi (1990) 8 Unless otherwise noted, outages are unexpected (no advance notice). Lehtonen & Lemstroem (1995) 4 05 Sanghvi (1990) 6 Sullivan et al (1997) 7 Sullivan et al (1996) 8 Caves et al (1992) 9…”

Section: Summary Of Outage and Power Quality Event Costsmentioning

confidence: 99%

“…Beenstock (1997) uses data on firms' investment in back-up power sources. Sullivan et al (1996) address the issue of the high cost of collecting outage cost data and perform statistical analysis of detailed survey results to produce a series of regression equations that could be used to estimate customer outage costs from just a few inputs, such as customer energy use, the presence of certain equipment, types of processes used and presence of back-up equipment.…”

Section: Non-survey-based Estimates Of Outage Costsmentioning

confidence: 99%

Scoping study on trends in the economic value of electricity reliability to the U.S. economy

Eto¹,

Koomey²,

Lehman³

et al. 2001

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During the past three years, working with more than 150 organizations representing public and private stakeholders, EPRI has developed the Electricity Technology Roadmap. The Roadmap identifies several major strategic challenges that must be successfully addressed to ensure a sustainable future in which electricity continues to play an important role in economic growth. Articulation of these anticipated trends and challenges requires a detailed understanding of the role and importance of reliable electricity in different sectors of the economy. This report is intended to contribute to that understanding by analyzing key aspects of trends in the economic value of electricity reliability in the U.S. economy.We first present a review of recent literature on electricity reliability costs. Next, we describe three distinct end-use approaches for tracking trends in reliability needs: 1) an analysis of the electricity-use requirements of office equipment in different commercial sectors; 2) an examination of the use of aggregate statistical indicators of industrial electricity use and economic activity to identify high reliability-requirement customer market segments; and 3) a case study of cleanrooms, which is a cross-cutting market segment known to have high reliability requirements. Finally, we present insurance industry perspectives on electricity reliability as an example of a financial tool for addressing customers' reliability needs.iv

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Interruption costs, customer satisfaction and expectations for service reliability

Cited by 157 publications

References 3 publications

Modelling generator maintenance scheduling costs in deregulated power markets

Modelling generator maintenance scheduling costs in deregulated power markets

Estimated Value of Service Reliability for Electric Utility Customers in the United States

Scoping study on trends in the economic value of electricity reliability to the U.S. economy

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