CDF Calculator Helps Utilities Improve Outage Cost Estimations
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A new tool called the CDF Calculator can help utilities get a more holistic view of total outage costs. This is important, because estimating these costs is easier said than done.
There are many “soft” factors that impact outage costs, such as spoilage, lost time, reduced productivity, interrupted services, etc. While it’s relatively straightforward for utilities to calculate direct restoration costs (equipment, supplies, crew hours, etc.), adding costs that customers and stakeholders incur is trickier. And while this may not seem important, access to this type of information can pay dividends to utilities when it comes to customer service, regulatory scrutiny, and company reputation, among other benefits.
How the CDF Calculator Helps Derive Outage Costs
The good news is that utilities that want a more holistic understanding of outage costs do not need to reinvent the wheel. The National Renewable Energy Laboratory (NREL) has created a free, publicly available Customer Damage Function (CDF) Calculator.
While the CDF Calculator is geared more for facility managers, government agents and consumers, it offers value to utilities as well. Utility companies can extend an olive branch to their large and/or critical customers after outages by proactively reaching out to them with the cost information.
This information can be used to justify recommendations that will soften the blow of future outages for critical customers, such as building microgrids, adding storage, or developing a backup power solution. It can also be used by the utility itself for grid management during times of peak demand, and may even help reduce help customers’ agita if actual costs of a recent outage are lower than perceived costs.
The bottom line is that communication, narrative control and perception management are critical elements of a successful restoration. As the old saying goes, perception is reality, and if utilities can steer perception closer to reality in a way the enhances their reputation, their restoration efforts will be more positively perceived. And that is precisely how the CDF Calculator can help.
