Power interruption costs to industrial and commercial consumers of electricity

Sullivan, Michael J.; Vardell, T.; Johnson, Murray L.

doi:10.1109/icps.1996.533934

Cited by 28 publications

(22 citation statements)

References 5 publications

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“…The contractual compensation for each unit for a time period can be calculated using expression (6) Using the data presented in reference [34] the interruption cost for a week for a large commercial and industrial customer is assumed to be equal to $74,835. Calculation for other time periods can be obtained in a similar way and these are summarised in Table 4.…”

Section: Maintenance Cost Data Gatheringmentioning

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: Maintenance Cost Data Gatheringmentioning

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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“…This relationship can often be defined by a matrix of weighting factors, using the cost of a momentary interruption as the base. If a voltage sag to 50% causes 80% of the economic impact that an interruption causes, then the weighting factor for a 50% sag would be 0.8 [22] Financial losses due to tripping events can be calculated according to [23]: Losses = Value of lost production + shutdown costsshutdown savings The value of lost production is equal to the customer's expected revenue without the trip. Shutdown costs include equipment damage costs, material damage costs, backup generation costs, labor costs, and any penalties due to delay in product delivery, shipping, etc.…”

Section: A Losses Due To Sags and Interruptionsmentioning

confidence: 99%

Costs of Custom Power Devices Versus the Financial Losses of Voltage Sags and Short Interruptions: A Techno-economic Analysis

El-Gammal¹,

Abou-Ghazala²,

El-Shennawy³

2010

IJCEE

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Abstract-The increased concern about the financial losses due to voltage sags and interruptions plus the advancements in power electronics technology have led to the innovation of very fast acting intervening equipment that can mitigate such disturbances at the facility entrance. Although significant improvements in the overall power quality can be achieved, however, the high cost of these custom power devices can offset the benefits resulting from their application. The problem therefore, is one of finding a compromised solution that makes technical and financial sense. In this paper, the technical merits of the custom power devices are highlighted, along with their effectiveness in mitigating voltage sags and/or short interruptions. The costs of each application are financially analyzed together with a procedure for the decision maker to compare the payback or the revenue of investment in such devices. A case study of an oil refinery in Alexandria, Egypt is considered to illustrate the proposed procedure.Index Terms-Custom Power Devices, Power Quality, Techno-economic Analysis, Voltage Sags. I. INTRODUCTIONVoltage sags and short interruptions can be generally described as brief voltage reduction events, followed by restoration of the normal supply conditions. Voltage sags and short interruptions are probably the most serious power quality problems, as they are frequent causes of tripping electrical equipment in industrial installations, leading to costly process shutdowns [1].Custom power devices are a special category of power conditioning equipment, used to protect the entire facility from such voltage disturbances. Custom power devices have to work within parts of a cycle, thanks to the advancements in power electronics technology, such that the load bus will not be affected by the supply disturbance [2].The study work in this paper tries to answer two questions; which custom power device to use and at what cost. The paper proposes a methodology for the decision makers, to Manuscript received February 3, 2010. M. A. El-Gammal is the head of the Electrical Power Engineering Department, Faculty of Engineering, Alexandria University, Alexandria 21544 Egypt (e-mail: gammalmah50@yahoo.com).A. Y. Abou-Ghazala, is the Electrical Power Engineering Department, Faculty of Engineering, Alexandria University, Alexandria 21544 Egypt (e-mail: a.ghazala@electroopower.com).T. I. El-Shennawy is with Alexandria National Refining and Petrochemicals Co. (ANRPC), Alexandria 23111 Egypt (corresponding author, e-mail : tshennawy@yahoo.com, mob.: (+2012) 3926297, Fax.: (+203) 4446785, Phone(+203) 4264161).compare the technical merits and limitations of these devices, along with an economical evaluation of their costs against the financial losses associated with sags and interruptions. II. VOLTAGE SAGS AND SHORT INTERRUPTIONS A. DefinitionsThe IEEE Std. 1159-2009 defines voltage sag as: A decrease to between 0.1 and 0.9 pu in rms voltage or current at the power frequency for durations of 0.5 cycle to 1 min. The amplitude of voltage...

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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%

“…Table 2-2 summarizes the types of costs experienced by commercial and industrial customers. Sullivan et al (1997) 2.1.3 Electricity Reliability Cost Estimation Electricity reliability cost estimation methods fall into three broad categories: a) proxy methods, b) market-based methods and c) survey methods. Proxy methods use macroeconomic data or observable expenditures as a proxy for customers' willingness to pay for service reliability.…”

Section: The Cost Of Unreliable Electricity To Customersmentioning

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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Power interruption costs to industrial and commercial consumers of electricity

Cited by 28 publications

References 5 publications

Modelling generator maintenance scheduling costs in deregulated power markets

Modelling generator maintenance scheduling costs in deregulated power markets

Costs of Custom Power Devices Versus the Financial Losses of Voltage Sags and Short Interruptions: A Techno-economic Analysis

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

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