Analysis of contingency logistic system reliability for power utilities in Florida after a hurricane

The electrical power restoration time in Florida after a hurricane is directly related to the capacity of the investor-owned utilities to provide repair. The problem is the standardized electrical power system reliability calculations do not use repair cost to represent investor-owned utility performance. Some investor-owned utilities increased residential consumer rates 20% in the year after the hurricane season. The purpose of this study is to evaluate the investor-owned utilities contingency logistic system during the Florida 2004 and 2005 hurricane seasons. The theoretical foundation of the study is reliability interference theory of contingency logistics systems using first order of reliability method to calculate the reliability index from archival data provided by the Florida Public Service Commission. The research questions focus on the association between repair cost after hurricane and electrical outage duration and the relationship to power system reliability. This quantitative study uses correlation and regression analysis to investigate the relationship between outage duration and restoration cost. This researcher determines that power system reliability along with electrical outage duration can be used to evaluate the cost of the investor-owned utilities' contingency response after a hurricane. The results indicates that the average time to restore power after a hurricane is 22 hours with a mean cost of 110 million dollars per investor-owned utility. Implication for positive social change is the evaluation of investor-owned utility post hurricane repair cost can insure related consumer rate decisions are justified by the actual impact to the electrical infrastructure.