| Resource Type | Research Report |
| Author / Source | Leddy, Jenket, Thomas, Ericson, Cox, Grue, and Hotchkiss (NREL/NLR (U.S. Department of Energy)) |
| Publication Date | August 2023 |
| Location | New York (framework applicable nationally) |
| Initiative Type | Technology, Policy |
| Project Complexity | Advanced |
| Recommended For | Staff, Board |
Estimated reading time: 30+ minutes
Why This Matters for Rural Electric Co-ops
Co-ops can usually estimate what a resilience project will cost, but its benefits are harder to put into numbers. This review lays out the main ways the power sector measures and puts a dollar value on resilience, so leaders can build a stronger case for hardening, backup power, or microgrid investments.
A co-op can use it as a plain map of the options, from simple outage cost estimates to full cost-benefit analysis. It points to free tools such as the Interruption Cost Estimate (ICE) Calculator and NLR's Customer Damage Function Calculator. It also helps boards weigh the full range of outage impacts, from utility repair costs to lost business and harm to members, when comparing investments.
Key Takeaways
| › | Standard reliability indices such as SAIDI and SAIFI exclude major event days, so they do not measure resilience to large storms or long outages. |
| › | Resilience metrics are still emerging. They fall into attribute-based and performance-based groups, and no single metric fits every decision. |
| › | About 90% of outages start on the distribution system, where hardening is comparatively cheap, making it a practical first step for most co-ops. |
| › | Eight principles for resilience cost-benefit analysis, such as avoiding double counting and keeping it separate from rate impact analysis, help co-ops build a defensible investment case. |
Implementation Considerations
- Regulatory or Governance Considerations: The report notes open questions about which outage consequences members should pay to reduce through rates and which belong to public funding. Boards should settle this before committing to large resilience spending.
- Staffing or Technology Requirements: Advanced methods like probabilistic risk assessment and economic modeling need specialized skills and good outage data. Smaller co-ops may start with the free calculators and lean on their G&T, statewide association, or outside consultants for deeper analysis.
- Time-Sensitive Information: The review is a snapshot of research as of mid 2023 in a fast-moving field. FEMA benefit figures for hospital generators rest on assumed outage frequencies and may be updated. Tool and report links may shift further as NREL web content moves to NLR.
Notable Examples
- New York State Energy Research and Development Authority (NYSERDA): Commissioned the review to guide statewide resilience efforts.
- Federal Emergency Management Agency (FEMA): Source of a value of lost load for hospitals and the National Risk Index for hazard screening.
- Lawrence Berkeley National Laboratory ICE Calculator: DOE tool for estimating the cost of outages to customers.
- NLR Customer Damage Function Calculator: Tool showing how a site's outage costs grow as an outage lengthens.
- Sandia National Laboratories: Microgrid siting analysis for Puerto Rico after Hurricane Maria, using a social burden metric to guide equity-informed siting.
Estimated reading time: 30+ minutes
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