Cost of Power Interruptions to Electricity Consumers in the United States (U.S.)

TitleCost of Power Interruptions to Electricity Consumers in the United States (U.S.)
Publication TypeReport
Year of Publication2006
AuthorsKristina Hamachi LaCommare, Joseph H Eto
Date Published02/2006
Keywordselectricity markets and policy group, electricity reliability trends, power interruptions, power system reliability, power system reliability publications

The massive electric power blackout in the northeastern U.S. and Canada on August 14-15, 2003 catalyzed discussions about modernizing the U.S. electricity grid. Industry sources suggested that investments of $50 to $100 billion would be needed. This work seeks to better understand an important piece of information that has been missing from these discussions: what do power interruptions and fluctuations in power quality (power-quality events) cost electricity consumers? We developed a bottom-up approach for assessing the cost to U.S. electricity consumers of power interruptions and power-quality events (referred to collectively as "reliability events"). The approach can be used to help assess the potential benefits of investments in improving the reliability of the grid. We developed a new estimate based on publicly available information, and assessed how uncertainties in these data affect this estimate using sensitivity analysis.


The attached file is a preprint version of an article published in Energy: The International Journal. To view the published article, click here.

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