Distribution network upgrading base on expected utility by using insurance model

It is customer who defines quality and organizations have to consider quality in customer viewpoint. Nowadays, the concept of quality no longer equals to standards compatibility but it is defined as equal to the need of customer. In power industry, it is important to provide customer with reliability and quality, the same has been provided a lot in power supply industry tradition and several procedures have been performed to improvement the reliability. Such improvements dictated a lot of costs for customer. Now it seems that it is essential more than ever before that customer must receive right to choose the reliability rate by himself or herself. This paper plans to represents a model of reliability consistent with desired reliability in views of the distribution company as well as the customer. Different levels of reliability are suggested to provide the customer demanded desired. According to the insurance model, the customer will receive compensation if the guaranteed service is not available.