VI. CONCLUSION
The concepts and applications of a probabilistic reliability
model for computing DG equivalence to a distribution facility
in the deregulated electric utility environment is presented in the
paper. Local area distribution reliability planning is a powerful
methodology especially when the area capacity improvement
options are disparate. One important conclusion of this paper
is that while the distribution generation addition may be the
most expensive alternative, with the right generator size determined
using the reliability techniques and the distribution capital
deferral credit obtained from the utility company, theDGoption
could become a cost-effective solution to the energy supply
problem of the future benefiting both the energy suppliers and
the energy consumers. Finally, the methodology can be effectively
used in the emerging competitive electric energy market
to evaluate a wide range of power supply problems.