A practical approach to evaluating the marginal outage costs in generating systems

Abstract

This paper presents a fornialized and p ra c t i ca I iii a r gi n a I outage costs in generating systems for the piirposes of spot pricing. The proposed iiictliod Involves cstiniating tlic economic costs incurred by custoniers due to various outage lcvcls aiid the cffccts of load cliangcs on the probabilitics that these costs will actually be incurred. The utilization of tiie proposed nietliod In calciilating the marginal outage costs of a slngle generating system Is illustrated using the I EEE -Reliability Test Systein. A nuniber of si in pl i fy in g assu in p ti on s a re a Iso d i sc ussctl i n tli is p:ipcr in order to sliow how the proposed iiicthod can I)c tailorcd to practical systeni applications. Tlic b:1sic nlctllodology is tl1cn cxtencled to two i II t cr con nect cd genera t iiig s ys tcm s in ordcr to show the iinpact of capacity assistance on the iiiargiiial on1age cost.