The costs that power interruptions impose on customers and society have emerged as essential considerations for decision making about power system reliability and resilience. There is well-established literature on the direct costs of localized and relatively short-duration power interruptions. However, far less is known about the costs of widespread and long-duration (WLD) power interruptions, especially the indirect costs and related economy-wide impacts of these events. As a result, utility planning activities generally incorporate these costs incompletely or not at all.
This report proposes a new approach to estimating WLD power interruption costs to support utility resilience planning studies. Specifically, the paper describes a hybrid method that integrates: (1) empirical surveys of region- and sector-specific inherent and adaptive customer behaviors during and after power interruptions, and (2) computable general equilibrium (CGE) modeling, which estimates the direct and indirect impacts of WLD power interruptions. The report provides both a rationale for the proposed hybrid approach and a roadmap outlining how it could be implemented.