The economics of custom power

The term "custom power" is usually used to describe advanced technologies that can be applied to the utility system for improving the power quality delivered to end use customers. These technologies include the distribution voltage restorer (DVR), the distribution static compensator, and the static switch applied at distribution voltages. These technologies provide the opportunity for utilities to tailor the quality of the supply to the needs of individual customers. This paper evaluates the economics of applying custom power on the distribution system, providing a general methodology for the evaluation. The methodology presented in this paper was incorporated into the latest draft of the IEEE P1409 draft application guidelines for custom power technologies.