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Modeling of demand response contracts with operational reliability indices in distribution management system

Utility Industry is evolving to a new distribution operation paradigm where demand response activity is becoming an integral part. One of the methodologies for measuring distribution operation design correctness has been to analyze how well utility has kept up with reliability performance indices, such as SAIDI (System Average Interruption Duration Index) and SAIFI (System Average Interruption Frequency Index). With the advent of wide variety of demand response (DR) programs, the utility industry needs to re-define the existing approach and practices in distribution grid operation. This paper presents a novel methodology for establishing and evaluating distribution operation goals and execution respectively. The methodology discussion is extended with design models for implementing demand response contracts in real-time distribution operation. In addition, the paper presents critical comments on various differences in modeling approaches for integrated distribution operation together with demand response.