COST OF POWER INTERRUPTION BASICS AND TUTORIALS
The costs of electric power outages to American electric customers are generally called “socio-economic” costs. Attempts have been made to quantify these costs but the estimates vary widely. One source reports that the costs are $26 billion each year and that they have been increasing as the electric power industry is restructured. A 2001 report1 from the Electric Power Research Institute (EPRI) states that power outages and problems with power quality cost the U.S. economy over $119 billion per year. Numerous impacts of power outages have been identified. Included among these impacts are: • Loss of life due to accidents (e.g., no street lights); • Loss of life of ill and elderly (death rates go up); • Loss of productivity by industry; • Loss of sales by business; • Loss of wages of labor; • Damage to equipment in industry; • Fires and explosions; • Riots and thefts; • Increased insurance rates.