A Probabilistic Formulation for Cost / Benefit Analysis in Power Distribution Engineering

Cost to benefit analysis in electric power engineering is revisited by including uncertainty in both the cost and benefit models. The uncertainty in costs and benefits are modeled in probabilistic terms with assumed probability density functions. The result is a stochastic calculation of such indicators as payback time, expected monetized benefits, and conditional expectations of these indicators. The method is applied to power distribution system cost to benefit analysis.