Evaluating Total System Cost
Quality is quickly becoming a strategically important consideration in the specification of materials for end users. According to the Electric Power Research Institute (EPRI), it is estimated that power quality problems are already costing industry billions of dollars each year. And both residential and commercial users are demanding better performance from their utilities at lower prices.
It’s quickly becoming standard practice to evaluate the total cost of a new system, including installation, testing and energizing costs, rather than simply making system-wide decisions based only on the cost of cables.
Future costs, those that are incurred after installation, are also becoming important considerations and can include:
- Operation costs
- Replacement costs
- Other costs associated with premature failures
- Costs associated with loss of service (revenue, intangibles, etc.)
More and more utilities are specifying high-quality cables that provide reliable, cost-effective, long-life performance. Cables made with quality peroxide cure compounds, both insulation and semiconductive compounds, have demonstrated excellent field service in Europe and in North America, as explained in the "Underground power cable longevity" article, in this issue of Point-To-Point.