Electricity spot pricing has been advocated in the past few years as a potential method for assigning incremental electricity costs to the time of delivery, and sending appropriate price signals to customers. Marginal outage costs constitute an important component of electricity spot prices. These costs are defined as the change in the expected customer outage costs that are incurred due to an incremental load change. The published literature indicates that the methods currently available for calculating the marginal outage costs utilize approximate economic models which do not take into consideration the stochastic nature of the power system and its effects on these costs. This thesis presents a method based on quantitative power system reliability concepts for calculating the marginal outage costs in electric power systems. This method is based on the premise that the marginal outage costs are expected quantities that depend upon two major factors: the customer economic costs that accompany various outage levels and the effects of load changes on the probabilities that these costs will actually be incurred. The proposed method calculates the marginal outage cost as the product of the incremental expected unserved energy and the average cost of unserved energy. A method for calculating the incremental expected unserved energy in generating and composite generation and transmission systems is developed in this thesis. The average cost of unserved energy is represented by the interrupted energy assessment rate. The proposed method is illustrated in this thesis by application to two reliability test systems in order to show the impact of system size on the robustness of the method and the accuracy of the approximations. In addition to the basic studies, a number of sensitivity analyses are conducted to show the impact of selected modelling assumptions and parameters on the marginal outage cost. The results from the sensitivity analyses are then used to provide recomme.

Discover cutting-edge developments in electric power systems Stemming from cutting-edge research and education activities in the field of electric power systems, this book brings together the knowledge of a panel of experts in economics, the social sciences, and electric power systems. In ten concise and comprehensible chapters, the book provides unprecedented coverage of the operation, control, planning, and design of electric power systems. It also discusses: A framework for interdisciplinary research and education Modeling electricity markets Alternative economic criteria and proactive planning for transmission investment in deregulated power systems Payment cost minimization with demand bids and partial capacity cost compensations for day-ahead electricity auctions Dynamic oligopolistic competition in an electric power network and impacts of infrastructure disruptions Reliability in monopolies and duopolies Building an efficient, reliable, and sustainable power system Risk-based power system planning integrating social and economic direct and indirect costs Models for transmission expansion planning based on reconfiguration capacitor switching Next-generation optimization for electric power systems Most chapters end with a bibliography, closing remarks, conclusions, or future work. Economic Market Design and Planning for Electric Power Systems is an indispensable reference for policy-makers, executives and engineers of electric utilities, university faculty members, and graduate students and researchers in control theory, electric power systems, economics, and the social sciences.

Discusses the events that led to current initiatives to restructure the electric power industry, and the institutional and structural changes that will be required to support the competitive pricing of electricity. Describes the analysis assumptions and methodology. Compares electricity prices under regulation and prices under competition. Discusses the sensitivities of the results to key parameters in the analysis cases. Analyzes the cash flow implications of the new competitive prices for utilities. Extensive charts, tables and graphs.

An electric power outage, which has many social and most importantly economical outcomes, is an undesired and unpleasant event that leads to inevitable damages to the society. Regardless of its psychological effects, preventing power outages presents a vital importance due to its severe effects on economy. Therefore, since it has so many motivating factors, studying and estimating the outage costs have been an attractive and popular field of study for the recent years. The electric supply utilities want to know the customer interruption costs for planning and investment purposes. Official departments want to know it for legislation and applying fine reasons. And of course, the customers desire to find out their true interruption costs to see their real losses to implement precautions in order to prevent such damages. These facts clearly show the meaning and the importance of evaluating power outage costs. This work is an attempt to estimate these costs on an objective manner by taking Finland's industry and service sectors as proper case studies.

Electric generating systems are so complex that the problems of devising analytical techniques and models that predict their actual behavior are enormous. But since the reliable and economic operation of such systems has become necessary to everyday life, it is imperative that those problems be solved. A host of diverse techniques—ranging from simple graphical devices to sophisticated simulation and mathematical programming models—have been developed. Each of these, however, is applicable only to certain classes of problems, not to the systemwide performance of power generation. The purpose of this book is to present a unified approach applicable to a whole range of systems-analysis needs in the electric energy generation field, an approach based on the recently developed equivalent load-duration curve (ELDC). The first seven chapters review traditional concepts and issues in the field, including reliability analysis and reserve planning, operating cost calculation, and rate structure analysis. The remaining seven chapters, which emphasize the random nature of electric generating systems, develop the ELDC approach and show its applicability to the full range of concepts and issues that have long engaged the attention of system designers and decisionmakers. This comprehensive and sophisticated treatment will interest electric utility managers and researchers, planners, and various federal commissions on utilities, as well as operations researchers, systems analysts, and energy economists.