Template-Type: ReDIF-Article 1.0 
Author-Name: Chi Keung Woo
Author-Name:  A. Tishler
Author-Name:  Kang Hua Cao
Author-Name:  Han Qi
Author-Name:  Raymond Li
Author-Name:  Jay Zarnikau
Author-Email:  steffan@szu.edu.cn
Author-Workplace-Name:  Centre for Sustainable Development Studies, Hong Kong Baptist University, China
Title: Market-based Estimation of Average Electricity Outage Costs in the United States
Abstract:  Electricity outage cost (EOC) estimates ($ per kWh unserved) are essential input data for optimal reliability planning and efficient pricing of electricity services. Based on the 2019-2020 market data published by two US government agencies for the lower 48 states, this paper’s EOC estimates by census region and year are median values of $1.39 to $2.93 per kWh unserved, well below the estimate of $9 per kWh unserved adopted by Texas for optimal reliability planning. The policy implications of adopting our lower EOC estimate are (a) a reduction in an electric grid’s optimal planning reserve to improve the grid’s cost efficiency; and (b) a decline in the grid’s marginal cost-based retail price to encourage welfare-enhancing end-use consumption.
Classification-JEL:  D12 ,Q41 ,Q48
Keywords:  Electricity outage costs, Market-based estimation, United States
Journal:  Energy RESEARCH LETTERS
Pages: 1-5
Volume: 5
Issue: 2
Year:  2024
DOI:  2024/07/10
File-URL:  https://erl.scholasticahq.com/api/v1/articles/90927-market-based-estimation-of-average-electricity-outage-costs-in-the-united-states.pdf
File-Format:  Application/pdf
Handle:  RePEc:ayb:jrnerl:103