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Automation is acknowledged by distribution utilities as a successful investment strategy to enhance reliability and operation efficiency. However, practical approaches that can handle the complex decision-making process faced by decision makers to justify the long-term financial effects of distribution automation have remained scarce. An automated and remote-controlled sectionalizing switch play a fundamental role in an automated distribution network. This paper introduces a new optimization approach for distribution automation in terms of automated and remotely controlled sectionalizing switch placement. Mixed-integer linear programming (MILP) is utilized to model the problem. The proposed model can be solved with large-scale commercial solvers in a computationally efficient manner. The proposed sectionalizing switch placement problem considers customer outage costs in conjunction with sectionalizing switch capital investment, installation, as well as annual operation and maintenance costs. The effectiveness of the proposed approach is tested on a reliability test system and a typical real size system. The presented results indicate the accuracy and efficiency of the proposed method. [ABSTRACT FROM PUBLISHER]

The concerns of regulatory authority for the cost efficiency and service quality of distribution utilities has led them to implement monetary schemes, such as penalty/reward mechanism (PRM). PRM provides explicit financial incentives for distribution system operators (DSO) to maintain or improve their efficiency and quality of service. Although the effectiveness of the PRM is proven, analytical tools that can handle the complex decision-making process faced by decision makers to respond to PRM are scarce. This paper presents an approach for distribution system maintenance management in the presence of the PRM. The proposed approach tailors the maintenance plans by taking into account the equipment condition in terms of failure rate, cost of planned and unplanned outage, as well as labor and material cost in conjunction with the incentives provided by PRM. New insights are also gained regarding the effects of PRM on the process of decision making by DSO. [ABSTRACT FROM AUTHOR]