Estimating the Value of Electricity Reliability
Brattle principals Dr. Charles Gibbons and Dr. Sanem Sergici were retained by the Electric Reliability Council of Texas, Inc. (ERCOT) to study the value of electricity reliability by estimating the economic costs customers incur due to power outages and their willingness-to-pay to avoid those outages. As part of their assignment, the principals designed and conducted surveys of residential, commercial, and industrial customers in the ERCOT Region. They calculated separate values of reliability for each customer class as well as for the region as whole. The Public Utility Commission of Texas called the analysis “detailed and thorough” and adopted Brattle’s estimates for use in ongoing Commission market design initiatives.
