Integrating fossil fuel mix and pricing in evaluating the Total Ownership Cost of distribution transformers of vertically integrated utilities

Abstract

This paper outlines a holistic approach to evaluate the Total Ownership Cost (TOC) of distribution transformers. Particular emphasis is given in modelling the forecasted fossil fuel prices that subsequently influence the demand and the energy component of the cost of losses. The fuel prices are statistically calculated as per the specific fuel used (or would be used) in the generation mix of the system over the life-cycle of the transformer under study The method refers on vertically-integrated systems where the generation, transmission and distribution facilities are owned either by private regulated utilities or by public companies/ government agencies.