Includes bibliographical references.The report outlines details of research in distribution network development with consideration of costs due to quality. Network planning methods are diverse with the common objective of establishing minimum cost options without violating network constraints. The selected network alternative is directed to meet customer requirements. Network planning models have evolved from consideration of simplistic models to multi variable and more realistic approaches. It is not always possible to achieve the desired outcome because planning is a difficult and complex task. There are usually uncertainties due to vague or no information available about the long-term (15-20 years) planning. The uncertainties generally result in risks, which have to be sufficiently analysed before reaching planning decisions. The recently proposed Minimum Risk Criterion is not a preferred risk resolution approach because it suggests that utilities should not establish expensive networks due to cost risk. Uncertainty modeling approaches based on fuzzy logic are proposed as the solution for analysis of uncertain conditions where very limited information is available. Costs in distribution lines are usually due to capital investment and operating costs. Distribution capital costs are primarily due to cost of conductor, s ucture and insulator. The cost of conductor and structure varies with size and type. Insulator costs do not vary significantly with variations in insulator type and properties. Quality related costs are a relatively new concept in distribution costing and are developed in the research. They are primarily due to mitigation, condition monitoring and interruptions. Quality mitigation costs are defined in the mitigation cost models in Figure 4- 8 and Figure 4- 9. The impact cost values in the models were established on the basis of assumptions, which require further research. According to CTLab , quality-monitoring equipment costs could vary from R50, 000 to R250, 000. Interruption costs are incurred through penalty cost and revenue losses. The penalty cost is similar to the revenue loss cost in many respects but is incurred when the standard limits are violated. Revenue loss costs are applicable whenever the frequency or voltage deviates from the nominal. It may be preferred to accept revenue losses where mitigation is expensive
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