Impacts of demand-side management on reliability cost/reliability worth analysis

Abstract

Electric utilities are responding to public concern regarding the environment and the desire to conserve natural resources by placing increased attention on the customer side of the meter. Demand-side management (DSM) is now an important consideration for electric power utilities. DSM in general refers to any activity adopted by an electric utility that ultimately changes the utility's system load curve. The paper presents a model which can be used to quantify the basic load shaping goals of DSM activities. Twenty new load models were simulated that represent basic load modification goals. The proposed models can be used as the basic framework in the design and implementation of a utility DSM programme. The integration of supply-side and demand-side planning in reliability cost and reliability worth analysis is illustrated using the IEEE Reliability Test System. Studies were conducted to assess the effect of considered load-shape modifications on the planning reserve margin and on the total societal cost of electricity. This total cost includes system costs and customer interruption costs but does not include costs associated with implementing DSM.