Electrical service reliability: the customer perspective

Electric-utility-system reliability criteria have traditionally been established as a matter of utility policy or through long-term engineering practice, generally with no supportive customer cost/benefit analysis as justification. This report presents results of an initial study of the customer perspective toward electric-utility-system reliability, based on critical review of over 20 previous and ongoing efforts to quantify the customer's value of reliable electric service. A possible structure of customer classifications is suggested as a reasonable level of disaggregation for further investigation of customer value, and these groups are characterized in terms of their electricity use patterns. The values that customers assign to reliability are discussed in terms of internal and external cost components. A list of options for effecting changes in customer service reliability is set forth, and some of the many policy issues that could alter customer-service reliability are identified.