Optimizing Reliability Project Portfolios for Electric Distribution Companies

Cost-efficiency is a major concern of electric distribution companies. While facing the pressure of improving distribution system reliabilities required by customers and regulators, electric distribution companies are struggling to implement distribution reliabilities projects as much as possible within budget. This paper presents a systematic methodology in optimizing reliability project portfolios based on cost efficiency. It starts with the introduction of benefit measurement and distribution system modeling techniques, followed by discussion of reliability project modeling. Cost efficiency is then measured for each project in consideration, based on which a final reliability project portfolio is optimized to provide guides for future budgeting and planning. This method is then applied in a test case on a central US electric distribution system. Results indicate that this distribution company can save up to half of the budget to reach the same goal of improving reliabilities after optimizing the project portfolio.