RELIABILITY AND RATIONING COST IN A POWER SYSTEM

Abstract

The present paper attempts to analyse the implications of the
\nrelationship between reliability and rationing cost involved in a power
\nsupply system in the framework of the standard inventory analysis,
\ninstead of the conventional marginalist approach of welfare economics.
\nThe study is substantiated by fitting a normal distribution to the daily
\ninternal maximum demand of the Kerala power system during 1995-96,
\nand also by estimating, based on the techno-economic parameters of
\ndifferent types of power plants, the rationing costs implied in different
\nreliability target criteria.
\nJEL Classification: C44; L94; Q41.
\nKey words: Reliability, rationing cost, maximum demand, normal
\ndistribution, power supply.