Abstract
A generalized simulation model for optimizing the reliability level of electrical supply is described. The model is applied to a case study of Cascavel, Brazil to determine a range of optimum reliability levels for long range electric power distribution system planning. The basis of the model is its comparison of the social benefits and costs of changes in power system reliability. The supply side costs of increasing system reliability can be determined from straight forward engineering considerations. On the demand side, the benefits of electricity users consist of cost savings from averted power failures or outages, which may be measured by the disruption of the output streams owing to idle input factors and spoilage. The results of the Cascavel case study indicate that the principal outage costs are incurred by industrial and residential consumers. This fact is reflected in the optimum design of the distribution system, with the high population density core city area and the industrial zone receiving the most reliable service. 22 references.
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