Putting a Price on Power Interruptions: How Utilities and Customers Can Share Interruption Costs

This article provides a process to quantify the costs associated with interruptions of service to customers of electric utilities. A basic assumption is that in a majority of cases, the most cost-effective solution to a given power quality or power reliability issue involves investment of time and money on both sides of the electric meter. The information we have provided here is intended to guide the engineer from the utility and the engineer from the utility customer as they collaborate to justify funds for the solution they have designed. We discuss the development of realistic costs for both parties in an effort to justify joint investments for improving reliability and power quality for the utility customer in its specific situation without being subsidized by other customers of the utility.