A Study on Optimal Planning Strategy Based on Customer Outage Costs

  • Kim, Bal-Ho H. (School of Electrical Engineering at the Hongik University)
  • Published : 2010.03.01


This paper examines the long-run social welfare maximization problems facing public utilities, which includes consideration of the cost of capital or other fixed costs of production, from which it derives optimal investment decisions in a reliability differentiated pricing based market. Reliability differentiated pricing policies lead to straightforward mathematical results on optimal investment decisions in generation and transmission expansion planning. This paper presents the mathematical conditions for optimal investment decisions.


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