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While transmission and distribution system assets are replaced on an ongoing basis, some network components can be satisfactorily maintained for several decades before they need to be replaced. For any individual system component however, the frequency, duration and probability of failure that can lead to an interruption all increase with age.
Electricity service interruptions are costly. Recent estimates of the cost of service interruptions to U.S. customers range from $175 to $1,085 per customer per year. However, lowering the frequency, number of customers affected and duration of interruptions will result in lowering customer losses associated with equipment failure.
In order to ensure State reliability performance standards continue to be met in the future, our Client carefully planned and subsequently sought regulatory approval for a 5 year, multi-million dollar network infrastructure investment program.
We supported the Client by assisting them to prepare a Business Case report the key elements of which were:
- an analysis of recent trends in the utilitys reliability performance
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- a distillation of current research on the financial losses incurred by customers due to service interruptions
- a description of the utilitys asset management principles and procedures
- an assessment of the avoided cost associated with reducing the number, frequency and duration of equipment failures.
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