Reliability cost-benefit evaluation of transmission capital projects

Abstract

Any investment decision related to transmission reliability could easily be addressed on a rational and quantitative basis within a cost-benefit framework explicitly using data on the value of changes in service reliability to customers. The ultimate determination of poor or adequate transmission reliability performance in value-based planning framework is based on customer's preferences and customer mix that are unique to each transmission system. In the current competitive energy market environment, such an approach makes perfect sense. This paper presents the results of a reliability cost-benefit evaluation performed for capital projects identified to improve supply reliability of a practical transmission system