Cost of electrical power system losses for use in economic evaluations

A methodology is presented for calculating the cost of losses that incorporates both established and novel concepts. Its enhancement can accommodate a loss decrease during a planned period, with additional generation not being required for many years. The effects of peak load diversity and the compounding of losses on `upstream´ categories are combined into multiplying factors. The method also utilizes the incremental approach for percent demand losses. For each system category, the costs of variable and fixed losses can be calculated, including the costs associated with the burden imposed on all `upstream´ categories. Examples are included