Economic design evaluation displays utilizing interval mathematics

Utility economic decisions are currently evaluated with revenue requirement theory. The current evaluations generally do not treat engineering considerations such as efficiency, reliability, and peak concerns in a rigorous manner. Furthermore, if sensitivity analysis is to be performed, numerous simulations are carried out as parameters are varied. Interval mathematics offers an alternative approach to sensitivity analysis for economic decisions. A single simulation using interval variations in parameters can provide the total variation in revenue requirement. In this paper the use of interval analysis in modeling uncertainty in utility economics is discussed. The economic problem faced by utilities is multi-objective. Therefore, a series of design evaluation displays which illustrate results of interval calculations are proposed