Cost-benefit analysis of electric power system reliability

The purpose of this investigation is to determine an appropriate cost-benefit formula that will help the power system planners in prioritizing transmission system projects. This paper deals with describing the value of increased reliability and security in bulk power systems. Three different approaches used for prioritization of transmission system projects by the electric utilities are discussed and analyzed for two different transmission system alternatives. Utilizing the best approach, transmission alternatives are prioritized and the best alternative is placed on top of the prioritized table. An analysis of the three approaches and a relative comparison is performed on the IEEE 25 bus Reliability Test System. TRELSS (Transmission Reliability Evaluation of Large Scale Systems), a software package developed by EPRI, is utilized in determining the probabilistic indices that are used in the proposed approach.<>