New reward and penalty scheme for electric distribution utilities employing load-based reliability indices

Bo Wang; Jorge Alexis Camacho; Gary Michael Pulliam; Amir Hossein Etemadi; Payman Dehghanian

New reward and penalty scheme for electric distribution utilities employing load-based reliability indices

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Author(s): Bo Wang¹ ; Jorge Alexis Camacho² ; Gary Michael Pulliam³ ; Amir Hossein Etemadi¹ ; Payman Dehghanian¹
- Affiliations: 1: Department of Electrical and Computer Engineering , The George Washington University , Washington, D.C ., USA ;
  2: United States Department of Commerce , National Institute of Standards and Technology , Washington, D.C ., USA ;
  3: Division of Infrastructure and System Planning , The Public Service Commission of the District of Columbia , Washington, D.C ., USA
Source: Volume 12, Issue 15, 28 August 2018, p. 3647 – 3654
DOI: 10.1049/iet-gtd.2017.1809 , Print ISSN 1751-8687, Online ISSN 1751-8695

Received 21/11/2017, Accepted 17/05/2018, Revised 15/04/2018, Published 21/05/2018

Electric distribution utilities are required to continuously deliver reliable electric power to their customers. Regulatory utility commissions often practise reward and penalty schemes to regulate reliability performance of utility companies annually with respect to a desired performance targets. However, the conventional regulation procedures are commonly found based on the customer-based standard reliability indices, which are not able to discern the service characteristics behind the electric meters and, hence, fail to holistically characterise the actual impact of electricity interruption. This study proposes a new method to evaluate the load-based reliability indices in power distribution systems using advanced metering infrastructure data. Furthermore, the authors introduce a reward/penalty regulation scheme for utility regulators to provide a reliability oversight using the proposed load-based reliability metrics. The new load-based reliability metric and the reward/penalty scheme proposed bring about superior advantages as the distribution grids become further complex with a high penetration of distributed energy resources and enabled microgrid flexibilities. Numerical analyses on different settings with and without microgrid considerations reveal the applicability and effectiveness of the proposed approach in real-world scenarios.

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New reward and penalty scheme for electric distribution utilities employing load-based reliability indices

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