A client group had us evaluate and present evidence on the appropriate generation reserve margin for a jurisdiction comprising several integrated utilities. Reliability is not a question of “how much do you want?”, but of “how much do you want to pay for?” The reliability of the system can always be increased at a price, so the question is “At what point does the cost outweigh the benefits?”

In another proceeding, we applied this concept to the issues of transmission congestion and the appropriate degree of reliability of an independent transmission operator.