2006 Update of Business Downtime Costs

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The objective of this paper is to assess the downtime cost of power outages to businesses in the commercial and industrial sectors, updating and improving upon studies that have already been published on this subject. The goal is to produce a study that, relative to existing studies, (1) applies to a wider set of business types (2) reflects more current downtime costs, (3) accounts for the time duration factor of power outages, and (4) includes data on the costs imposed by real outages in a well-defined market. This study examines power outage costs in 11 commercial subsectors and 5 industrial ... continued below

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Hinrichs, Doug & Goggin, Michael January 1, 2007.

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Description

The objective of this paper is to assess the downtime cost of power outages to businesses in the commercial and industrial sectors, updating and improving upon studies that have already been published on this subject. The goal is to produce a study that, relative to existing studies, (1) applies to a wider set of business types (2) reflects more current downtime costs, (3) accounts for the time duration factor of power outages, and (4) includes data on the costs imposed by real outages in a well-defined market. This study examines power outage costs in 11 commercial subsectors and 5 industrial subsectors, using data on downtime costs that was collected in the 1990's. This study also assesses power outage costs for power outages of 20 minutes, 1 hour, and 4 hours duration. Finally, this study incorporates data on the costs of real power outages for two business subsectors. However, the current limited state of data availability on the topic of downtime costs means there is room to improve upon this study. Useful next steps would be to generate more recent data on downtime costs, data that covers outages shorter than 20 minutes duration and longer than 4 hours duration, and more data that is based on the costs caused by real-world outages. Nevertheless, with the limited data that is currently available, this study is able to generate a clear and detailed picture of the downtime costs that are faced by different types of businesses.

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  • Report No.: ORNL/TM-2006/592
  • Grant Number: DE-AC05-00OR22725
  • DOI: 10.2172/931299 | External Link
  • Office of Scientific & Technical Information Report Number: 931299
  • Archival Resource Key: ark:/67531/metadc900391

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Office of Scientific & Technical Information Technical Reports

Reports, articles and other documents harvested from the Office of Scientific and Technical Information.

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  • January 1, 2007

Added to The UNT Digital Library

  • Sept. 27, 2016, 1:39 a.m.

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  • Oct. 28, 2016, 1:20 p.m.

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Hinrichs, Doug & Goggin, Michael. 2006 Update of Business Downtime Costs, report, January 1, 2007; [Tennessee]. (digital.library.unt.edu/ark:/67531/metadc900391/: accessed October 19, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.