The costs of
electric power outages to American electric customers are generally called
“socio-economic” costs.
Attempts have been made to quantify these
costs but the estimates vary widely.
One source
reports that the costs are $26 billion each year and that they have been increasing
as the electric power industry is restructured.
A 2001
report1 from the Electric Power Research Institute (EPRI) states that power
outages and problems with power quality cost the U.S. economy over $119 billion
per year.
Numerous
impacts of power outages have been identified. Included among these impacts
are:
• Loss of
life due to accidents (e.g., no street lights);
• Loss of
life of ill and elderly (death rates go up);
• Loss of
productivity by industry;
• Loss of
sales by business;
• Loss of
wages of labor;
• Damage to
equipment in industry;
• Fires and
explosions;
• Riots and
thefts;
• Increased
insurance rates.
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