Achieving high distribution reliability levels and concurrently minimizing capital costs can be viewed as a problem of optimization. Assuming given outage rates and repair times, distribution system design is the remaining factor in determining customer reliability. Including customer value of reliability in an economic analysis allows for optimization of the major components of distribution system design. Using mathematical models and simulations, a comparison of design concepts can be performed to compute the optimal feeder section length, feeder loading level, and distribution substation transformer loading level. The number of feeder ties and feeder tie placement are also optimized through the models. The overall outcome of this analysis is that capital costs can then be directed towards system improvements that will be most cost-effective in improving system reliability. This paper presents a reliability cost-benefit approach to designing urban distribution systems. The methodology is illustrated using a practical urban distribution system.
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