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Hurricanes and Power System


Reliability—The Effects of
Individual Decisions and
System-Level Hardening
By A l l ison C. R ei l ly, G i na L. Ton n , C h e ng w ei Z h a i , and S e t h D. G u i k e m a

ABSTRACT  |  Hurricanes produce significant, widespread, characterize how a community's likelihood of losing power in
and often prolonged electrical-power outages. For example, repeated hurricanes is affected by the complex interactions
Hurricane Irene caused more than 500 000 Long Island Power among individuals' behavioral responses in whether to
Authority customers to lose power and it took eight days to engage in personal or collective action.
achieve 99% customer restoration. Individuals and businesses
are heavily dependent on a continuous supply of electricity. Given Agent-based model; behavioral response;
KEYWORDS  | 
this strong dependence on reliable electricity, individuals and electric-power outage
private industries are increasingly putting collective pressure
on regulators to require system hardening by utilities. In some
I.   I N T RODUC T ION
cases, this has led to utility action. Conversely, many customers
install a backup generator to guarantee electricity supply during Business and household consumers of electric power
disruptive events. These actions taken by individual customers are increasingly reliant on a constant flow of electricity
affect their experiences in future storms, and are generally even following severe hazards such as hurricanes and
influenced by individuals' strength of preference for reliable ice storms. In a recent study, 62% of respondents say
power, their beliefs about the likelihood of losing power in the compensation of $500 would not suffice for a two-day
future, and the outcomes of their most recent experiences. outage [1]. This expectation of uninterrupted service is
However, individual action may come at the expense of collective expected to continue as facets of the transportation and
action, whereby those who buy generators, often those with heating infrastructure are added to the grid to utilize
more resources available to purchase the generator, do not decarbonized energy [2]. Despite this, not all service pro-
participate in the collective grievance, reducing the demand for viders offer similar levels of reliability following these
overall system hardening. By using a validated power-outage hazards. The prevailing wisdom assumes that differences
forecasting model in conjunction with an agent-based model, we among utilities’ performance stem from either the unique
characteristics of the recent hazard or managerial differ-
ences that guide system-wide hardening and restoration
Manuscript received September 21, 2016; revised January 5, 2017; accepted decisions [3], [4]. While these are likely significant fac-
February 22, 2017. This work was supported by the National Science Foundation (NSF) tors, it does not fully explain differences among utilities
under Grants 1621116 and 1631409. Any opinions, findings, conclusions, or recommenda-
tions presented in this paper are those of the authors and do not necessarily reflect the operated by the same electric-holding company, differ-
view of NSF. (Corresponding author: Seth D. Guikema.)
A. C. Reilly was with the Department of Industrial and Operations Engineering,
ences between adjacent utilities, and differences within
University of Michigan, Ann Arbor, MI 48109 USA. She is now with the Department a service area. For example, adjacent utilities, which
of Civil and Environmental Engineering, University of Maryland, College Park,
MD 20742 USA (e-mail: areilly2@umd.edu)
presumably experience many similar hazards due to spa-
G. L. Tonn was with the Department of Geography and Environmental Engineering, tial proximity, can have vastly different SAIFI and SAIDI
The Johns Hopkins University, Baltimore, MD 21218 USA. She is now with the Risk
Center at Wharton, University of Pennsylvania, Philadelphia, PA 19104 USA
index values when major events are considered [5].
(e-mail: gtonn@wharton.upenn.edu) This paper focuses on how factors other than mana-
C. Zhai and S. D. Guikema are with the Department of Industrial and Operations
Engineering, University of Michigan, Ann Arbor, MI 48109 USA (e-mail: sguikema@
gerial-driven decisions and unique aspects of the hazards
umich.edu; cwzhai@umich.edu). may affect the reliability of utilities. Specifically, this

Digital Object Identifier: 10.1109/JPROC.2017.2689720

0018-9219 © 2017 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.
See http://www.ieee.org/publications standards/publications/rights/index.html for more information.
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Reilly et al . : Hurricanes and Power System Reliabilit y

paper explores impacts from hurricanes and how customer understanding and perspective. As such, the paper contrib-
expectation of reliable power and behavioral response to utes to the literature in the following ways: 1) it provides an
sustained outages may create a dynamic feedback loop that alternative explanation for regional disparities in power sys-
forces change and affects the overall reliability. This study is tem reliability; 2) it develops an integrated model for com-
limited to customers either purchasing a generator or filing bining both outage forecasting and behavioral responses;
a complaint, with the latter being an effective strategy for 3) it tests the implications of climate change scenarios and
system improvement should a sufficient number of people policy interventions on grid reliability; 4) it builds a realistic
complain. It is possible that customers do both, though it case study using open-source parcel data from over 357 000
is more likely that customers with generators do not file a State of Maryland electric-power customers; and last, 5) it
complaint and thereby reduce the demand for system hard- demonstrates the value of interdisciplinary modeling.
ening now and in the future. In this paper, system harden- The paper is organized as follows. The next section
ing is assumed to be the process whereby an electric-power provides an overview of relevant literature, including a
utility makes an investment in the system to reduce its vul- discussion of the relevance of behavioral response to haz-
nerability to damage in future events. This could include ards, outage forecast modeling, and agent-based modeling.
measures such as raising substations, undergrounding lines, Section III presents the methodology, and a case study is
and replacing poles with ones that can withstand greater provided in section IV. The fifth section concludes with
wind loading. insights, limitations, and next steps.
The hazard explored in this paper is hurricanes, for two
reasons. The first is because they can cause widespread and II.  L I T ER AT U R E
prolonged outages. Hurricane Sandy1 caused more than
8 million outages and nearly 10% of those outages persisted The model presented in Section III is grounded in an agent-
for more than one week [6]. Sustained outages directly based simulation that integrates components of both out-
attributed to at least nine deaths for reasons including car- ages forecasting and behavioral response.
bon monoxide poisoning, falls due to darkness, and inopera-
ble oxygen machines [7]. Generators were sold out and some A. Electric-Power Outage Modeling
utilities were required to invest heavily in hardening after- Knowing the likely extent of outages in the hours and
ward. The second reason is more banal. Models that forecast days prior to a hurricane provides a significant advantage
localized hazards generated by hurricanes (e.g., wind speed) to those overseeing emergency response and recovery. It
are sufficiently advanced to characterize the risk of an out- guides decision makers on where to open shelters and utili-
age in a localized region (e.g., census-tract level). While ties on where to preposition mobile assets so power can
hurricanes are the focus of this work, the methodology and promptly be restored, along with a host of other benefits.
insights could also be applied to other wide-scale spatial dis- As such, there has been a significant push toward a priori
asters, such as ice storms, as the methodology continues to prediction of electric-power outages in advance of a disas-
advance [8]. ter. Typically, the predictions are updated when the hurri-
The objective of this work is to close a feedback loop in cane tracks are updated, which typically happens every six
electric-power utility system reliability modeling by incorpo- hours. The two general approaches are: network models
rating customer behavioral response. To the authors’ knowl- and predictive statistical and data modeling. The first uses
edge, this is the first work to do so. This is done through an topographical or network flow models with sets of supply
integrated power-outage-prediction and agent-based model and demand nodes to predict which nodes will have unmet
that uses a probabilistically consistent synthetic hurricane demand when nodes or links are removed [9]–[11]. For
generation model to create a tunable hurricane environ- reasons particularly linked to model size, scaling, and data
ment. The hypothesis is that seemingly minor adjustments requirements, this type of modeling tends to be at the trans-
to how customers respond and their tolerances to outages mission level. Fortunately, transmission lines tend to fare
may aggregate to system-wide changes that affect regional well during hurricanes whereas components at the distribu-
power reliability. Through this, the research explores how tion level tend to fail and cause the vast majority of outages.
different trajectories of power system reliability may emerge Statistical approaches and data mining methods for pre-
over time. dicting outages have made significant advances in the past
The model presented in this paper is quantitative, and decade and, with sufficient training data, they can offer esti-
its structure is heavily informed by social science studies of mates that are more spatially detailed than those described
behavioral responses to natural hazards. The model high- above [12]. Liu et al. developed the first statistical outage
lights the value of interdisciplinary work by bringing new prediction model using generalized linear models along
with the hurricane’s track to estimate outages [13], [14].
1
The name “Hurricane Sandy” is used throughout this paper. The However, the model was evaluated based on fit and not pre-
storm merged with a nontropical system, and its proper name is subject dictive accuracy, in part because some covariates were hur-
to debate.
ricane specific indicator variables. Han et al. developed and

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validated a predictive outage forecasting model that relied how to prepare for the next event [34]. Severe consequences
on a bevy of utility-specific spatial information [15], [16]. from some hazards have emboldened citizens to unite their
Unfortunately, much of these data are not widely available, grievances and either demand corrective action from regu-
reducing the model’s direct applicability for other utilities lators or undertake wide-scale mitigation measures them-
and regions. Nateghi et al. expanded upon these methods selves. For example, Neef et al. [35] present a case study of
by comparing them to the predictive performance of other farmers in flood-prone North Thailand who united in wid-
regressing and data mining methods [12]. This work demon- ening the local riverbed to reduce the likelihood of severe
strated how flexible ensemble-based statistical models offer flooding in the future. In a separate case, numerous denials
superior predictive accuracy. Quiring et al. used classifica- of flood insurance claims led many Hurricane Sandy victims
tion and regression trees to evaluate the role of soil moisture to complain to reporters and congressional representatives.
and land cover in outage modeling [17]. These studies later The federal investigation that resulted highlighted a myriad
informed Nateghi et al. and Guikema et al. which showed of problems facing the Federal Flood Insurance Program
that strong predictive accuracy could be achieved by using and may be a step toward changing how individuals are
a random forest model and only public data that are avail- insured for floods in the United States [36]. These examples
able in advance of an approaching storm [18], [19]. These highlight why studying a system in isolation without consid-
prediction models have been validated using extensive out- ering how humans may intervene and alter the system may
of-sample testing and Guikema et al. is used to estimate the underestimate or overestimate the risk.
likelihood of power outages at a census tract level in the A power outage may induce a variety of behavioral
model present in Section III [19]. responses. Some people may do nothing, either because the
outage does not bother them, or because they do not have the
ability to do anything [2]. Those who perceive the likelihood
B. Downstream Effects of Electric-Power Outages
of outages to be high in the future may purchase generators
Historically, the research on the impacts of sustained depending on affordability. General trends in generator
outages focused on cost. Wacker and Billinton reviewed dif- ownership are unknown and likely geographically depend-
ferent methodologies for assessing cost of interruption for ent. One study grounded in interviews in rural United
electric-power customers [21]. They conclude that despite Kingdom reported relatively few respondents using or pur-
reasonable methodologies being available, insufficient data chasing a generator [2]. This is consistent with other stud-
prevent accurate estimates. Essentially, too few regions have ies based in Scandinavia, which suggest residents in rural
experienced prolonged, repeated outage events and the cost regions are more likely to report that outages are expected
depends on many factors, including location and demograph- and manageable [37], [38]. Tendencies toward purchasing
ics. Since 1989, however, there has been a tenfold increase generators may differ in the United States. 15% of homes
in the number of major outage events—defined as having have either portable or standby generators, and the sales of
50 000+ customers without power—in the United States, generators grew 45% in 2012—a year that witnessed over
providing significantly more data [22]. More recently, the 120 major outage events [39]. Anecdotally, a run on gen-
interruption cost modeling has focused on improved local- erators is typically seen in the days before and after a hur-
ized, temporal, and sector-specific estimates [23]–[26]. ricane and a search in Google Trends for the term “personal
While interruption costs and willingness to pay are good generator” was 20 times higher in the days after Hurricane
indicators for the impacts of outages, the range of effects Sandy than the month prior. The actions of others in the
is much wider. From a critical services perspective, the loss community may either encourage or discourage mitigation.
of power for a dependent infrastructure system (e.g., tele- This phenomenon is consistently witnessed in the flooding
communications) can set a cascade of failures into motion, and other natural hazards literature [33], [40], and there is
leaving customers both without power and other critical ser- little reason to believe it would not occur with generators.
vices [27], [28]. Only recently, however, has the research The consensus is that by mitigating, an agent is implicitly
perspective on the impacts of outages been broadened to conveying information to their neighbors that their risk is
consider human welfare, coping, and behavioral response, sufficiently high to take action [33]. This may induce others
though its study is still nascent and geographically limited. to mitigate as well. On the other hand, an individual with a
Researchers have repeatedly shown that how individuals generator may exert social altruism and become the beacon
respond to a hazard affects the regional risk landscape under for his or her neighborhood, with neighbors visiting to cook
similar events in the future [29]–[31]. Responses can be food or power electrics [2]. The authors suppose that it may
complex and range from doing nothing to moving out of the create a free rider effect, in which neighbors are dissuaded
hazard zone, and everything in between. That which moti- from purchasing generators themselves [41].
vates these responses is perhaps even more complex, though There is some evidence that collective action has forced
outside the scope of this paper [32], [33]. Generally, when hardening of utilities. For example, based on complaints,
individuals perceive a high likelihood of large consequences, the American Customer Satisfaction Index ranked Pepco,
they are more likely to mitigate or demand information on the regional electric-power supplier for Washington, DC

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Reilly et al . : Hurricanes and Power System Reliabilit y

and surrounding counties as the “most hated company in useful and important to understand the potential impacts
America” in 2011—a feat given its relatively small customer of uncertain model parameters and rules on ABM output.
base compared to more national brands [42]. As a condition ABMs have been used to simulate natural hazard
for its 2016 merger with Exelon, Pepco must achieve aggres- response, wherein individual behavior is a key driver of col-
sive reliability targets by 2020 [43]. lective outcomes. For instance, Dawson et al. developed an
There is an inherent dichotomy between participating in ABM to simulate vulnerability to coastal flooding in light
collective action and individual mitigation. That which one of different storm surge conditions, evacuation strategies,
chooses is many times aligned with whether one views miti- and flood warning times [55]. Chen et al. used agent-based
gation as a personal or governmental responsibility [44]. simulation to study hurricane evacuation in the Florida
When large-scale mitigation is conducted, individuals are Keys [56]. Other studies have also generated agent-based
often deterred from mitigating locally [45]. The perception simulations of urban and coastal evacuation under vary-
is typically that their risk has been reduced. Those who do ing situations [57]–[59]. This study focuses on longer term
mitigate individually, which can be expensive, are less likely responses and mitigation action in reaction to hurricane
to participate in the collective action. When that occurs, power outages.
large-scale mitigation efforts to may be less likely to occur The insights provided by ABMs, regardless of the topic,
and create risk disparities that are based on income [46]. must be qualified by the learning and behavioral assump-
Finally, it is possible that customers who experience an tions employed. Modeling human behavior is challenging at
outage request information about the situation. This has best because individuals have differing prior beliefs, experi-
been seen after other hazards [34]. Information dissemi- ences, preferences, cognitive abilities, and so on. The goal of
nation by a community can affect residents’ perceptions capturing behavior is not to precisely mimic behavior or to
of risk as well as their perception of how they can manage forecast how the system will act. Rather it is to understand
and mitigate risk on an individual level. Improved provision how the strength of assumptions, preferences, beliefs, etc.,
of information can better prepare households for natural may inform the results and to identify traits that could lead
hazard events [47]. A study by Ludy and Kondolf [48] indi- to superior outcomes. This can only be accomplished with
cates that informed individuals are more likely to take pre- rigorous sensitivity analyses. From a policy perspective, this
ventative action than uninformed individuals. Information could aid in identifying which aspects of behavior are most
sources and availability are prominent components of an important for some systems, and the direction that policy-
individual’s response to natural hazards, playing a part in makers may want to “nudge” some individuals, and by how
both the perception of risk and in the behavioral response much, to improve outcomes.
to risk [49]. The mechanism that spurs mitigation is more To that end, the authors have identified three general
complex and dependent on a host of factors. classes of models that incorporate behavior in ABMs. The
Practically, an information campaign could inform resi- first group are “perfect world” behavioral models. These
dents of the closest shelters. This is especially necessary when models are more prescriptive than they are descriptive and
extreme heat or cold accompanies the storm. Alternatively, indeed not likely to be empirically valid in any meaning-
an information campaign could inform residents on how ful way. As an example, Bayesian learning models, where
likely prolonged outages are and how to survive a sustained parameters that support a distribution are updated after
outage. This is crucial in hard-to-access rural regions and some experience, fall into this category (e.g., see [66]).
for customers reliant on power for life-sustaining machines. These are reasonable models, and in a “perfect world,” indi-
To the best of the authors’ knowledge, there is no research viduals would use their entire experience to parameterize
examining the effectiveness of information campaigns that reasonable distributions over possible future events and
raise awareness of prolonged electric-power outages. then act in their best interest. We know from observation
though that people do not always act in this manner, which
is why it is important to compare these “perfect world” mod-
C. Agent-Based Modeling for Extreme Events els with more descriptive models, and then to measure the
Agent-based models (ABMs) are simulation models that implications of being wrong. An example of this approach is
include decision-making entities called agents in addition to provided in Section IV-B.
stochastic elements [50]–[52]. The agents are autonomous The second class of models are simple “if–then” models,
and heterogeneous, and can have distinct learning rules, which make reasonable inferences about causes and effects
behavioral rules, and history. The agents can interact with but do not attempt to characterize any underlying process.
each other and with their environment. ABMs are typically This model type may be probabilistic. For example, “If the
used to explain rather than predict, and can be used to simu- power goes out, then I will buy a generator with a likelihood
late the emergence of system-level properties [53], [54]. of ​x%
​ .” This is then followed by rigorous sensitivity analyses.
ABMs are particularly powerful in domains such as the one These models are typically intuitive, or at least empirically
present in the paper, ones that lack data sources and contain observed, and not subjected to validation per se. Despite
complex social interactions [54]. Sensitivity analyses are not being grounded in the most recent scientific advances

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in behavioral modeling, trends still emerge which indicate


the relative importance of preferences. Berglund [54] and
Epstein [61] provide examples of this type of approach.
The final class of models is supported by recent significant
advances in behavioral sciences. This has resulted in numer-
ous frameworks for learning, behavior, and decision mak-
ing under uncertainty. Many have had elements validated
but none are (arguably) universally more valid than others.
This class of models tends to address more of the intricate
relationships between causes and effects and the limitations
of humans themselves. How one would accurately param-
eterize many of these models is up for debate, which dem-
onstrates, again, the importance of sensitivity analyses. All
of the classes are plausible depending on the problem, and
each has unique strengths and limitations. Aspects of all
model classes exist in the methodology that follows.

D. Alternative Approaches for Modeling Complex


Systems With Many Agents
Agent-based modeling is among the many mathematical
modeling methods for shedding light on complex systems,
especially in the arena of policy and resilience. Broadly,
the field can be divided into bottom-up approaches, which
include simulation and agent-based models discussed
above, and top-down approaches, which include optimiza-
tion, economic, and other methods. An advantage to simu-
lation methods is that unique behaviors can be assigned to
each agent. However, this behavioral assignment could be
imprecise, making sensitivity analysis crucial. Examples of
bottom-up simulation methods that quantify regional vul-
Fig. 1. Model overview.
nerability and that are not explicitly agent-based models
include [62] and [63].
Top-down approaches typically assign the same reason-
able behavior to all agents (e.g., cost minimizers), in part to of storms at landfall, respectively. Track data from historic
add model tractability. These models may use optimization storms are collected and used to train a random forest model
to identify optimal strategies given some resilience or other that predicts a storm’s movement in 6-h increments. This
policy objectives (e.g., [64]and [65]). Performance and data predicts the storm’s path. The Kaplan and DeMaria hurri-
analysis methods, such as data envelopment analysis and cane decay model is then employed to parametrically reduce
input–output models, are useful for evaluating high-level wind speeds for each 6-h increment [60]. Next, any storm
impacts of policies (e.g., [4]and [66]). In many of these track that does not produce significant winds in the study
models, agents can be fully strategic, meaning that they can area (i.e., winds of tropical storm strength or below) is dis-
anticipate the effects of their choices on others (e.g., how carded. This step concludes by using a parametric downs-
the decision to purchase insurance affects the insurance caling model that interpolates the 6-h hurricane track and
market’s exposure [65], [67]). As we begin to more fully intensity into 3-s peak wind gusts for the centroid of each
understand human behavioral responses to risk, complex census tract [68], [69]. These wind speeds are used to pre-
system modeling will continue to advance. dict the fraction of customers to lose power and comprise
the synthetic hurricane library. In sum, 32 000 synthetic
hurricanes tracks are produced and range in intensity
III.   M ET HOD OL O GY between tropical storms and Category 5 storms in the
Fig. 1 provides an illustrative overview of the integrated study area. Hurricanes are not chosen randomly from this
outage prediction and agent-based model. First, a library library but rather in proportion to the frequency and inten-
of synthetic tracks is produced for the study area. Storms sity parameters set by the model later.
are generated in the following manner. A starting location Using the historical storm data set, the peak wind
and wind speed for a storm are randomly selected in propor- speed from each storm in the area is used to parameterize a
tion to the historical spatial and wind speed distributions Weibull distribution. This distribution reflects the historical

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distribution of storm intensity in the study area. Additionally, with an availability bias model, which limits the amount of
the mean number of historical storms to affect the study information agents use to when forming beliefs.
region in a given year is used to parameterize a Poisson The decision portion of the model then begins. Most of
distribution. This distribution is sampled to determine the the decision rules take an “if–then” approach and are based
number of hurricanes to occur in a given year. While there on reasonable assumptions and observed behavior of indi-
is tremendous uncertainty in how climate change will affect viduals after hurricanes. Ultimately, each agent is assigned
hurricane frequency and intensity, the general consensus an action based on his or her experience during the storm,
is that they are likely to become less frequent though more the experience of people within his or her neighborhood,
intense in the Atlantic basin [70]. As such, during sensitiv- and beliefs. An agent without a generator may purchase one,
ity analysis, the mean of the Weibull distribution is right- file a complaint, or do nothing. Two scenarios, the base-
shifted by up to 40% to reflect a more intense environment. line and neighbor scenario, are considered for purchasing
The Poisson parameter is also increased or decreased to a generator. In the first scenario, an agent will buy a gen-
reflect different frequency scenarios, in a manner similar to erator if he or she does not have one, can afford one, pos-
Staid et al. [71]. sesses a sufficiently high expectation for the likelihood of
The integrated outage prediction and agent-based future outages, and is sufficiently confident that one outage
model then begins. First, tolerance thresholds are set for or more than one outage will occur. Confidence is the ratio
the parameters that induce agents into action. Details of of the variance to the mean of the posterior Dirichlet belief
these thresholds are discussed throughout this subsection. parameters. When this ratio is small, the agent is more con-
Additionally, parameters that support an agent’s categori- fident. The second scenario tests the influence of neighbors.
cally distributed beliefs about experiencing no, one, or The same purchasing conditions from the baseline scenario
more than one outage in any given year are assigned. These are applied. In addition, an agent will buy a generator if no
parameters are Dirichlet distributed and updated through- neighbors within “extension cord length” (i.e., 15 m) have a
out the run. Noninformative priors are used in the current generator, but at least some fraction of neighbors within 100
model. The model then starts in year one and no agents are m have a generator. This reflects the logic where an agent who
assumed to own a generator at this time. The Poisson fre- mitigates encourages neighbors to mitigate as well by implic-
quency distribution is sampled to determine the number of itly sharing information about their risk. This phenomenon
hurricanes to occur in the year. If no hurricanes occur, the has been empirically observed in flood mitigation [73] and
model advances to updated beliefs on the likelihood of an evacuation in anticipation of a hurricane [74] and it is highly
outage. If one or more hurricanes occur, the Weibull inten- reasonable to assume it would happen to some degree in this
sity distribution is sampled to assign a regional peak wind setting. However, agents within extension cord length (15 m
speed for each hurricane. The hurricane(s) with the maxi- in this case) are less likely to purchase a generator because
mum centroid wind speed that is closest to the sample wind they can free ride. Power-sharing is consistently observed
speed is then selected from the library and a peak 3-s wind after major outage events, from NYC urbanites who shared
speed is assigned to each census tract. Next, the outage- power with neighbors to power cell-phones after Hurricane
prediction model is used to translate those wind speeds into Sandy [75] to Chicago suburbanites who share power
the number of customers within each census that are likely with neighbors to power sump-pumps after heavy thun-
to lose power using the random forest model of Guikema derstorms [76]. The intent is rarely to power an entire
et al. [19]. This model has been validated using extensive house, but rather critical electronics (e.g., cellphones,
out-of-sample testing. Each agent residing within each cen- freezers, health-monitoring devices). Some news outlets
sus track is then probabilistically assigned an outage pro- even encourage power sharing as a means to make amends
portional to the fraction of customers to lose power in that with the often-troubling buzzing that accompanies genera-
census tract. Those agents who experience an outage but tors [77]. As such, in the neighbor scenario, those agents buy
possess a generator are included in the customers without a generator only if the baseline scenario conditions are met
power count; this count is an indicator of utility’s reliability. and they have relied their neighbor’s power often in recent
A separate tally records how many agents own a generator. history. The neighbor scenario and the baseline scenario are
Agents’ recent outage experiences then induce learning ultimately compared to understand whether power-sharing
in a manner similar to [72]. The Dirichlet conjugate priors, could impact system reliability.
which reflect each agent’s experience up to that point, are The cost of filing a complaint is relatively low com-
updated in the typical Bayesian manner to include their out- pared to the cost of purchasing a generator, and generally
age experience in that year. Each agent has a different simu- consists of the time needed to make the actual filing. As
lated experience, meaning they each may have different such, the personal barriers to filing a complaint are low.
beliefs over their outages likelihoods. This learning model An agent without a generator files a complaint when they
is representative of a “perfect world” class of models where believe their likelihood of losing power is sufficiently high
agents use all experiential data to methodically inform or if they have experienced a significant number of out-
beliefs. In Section IV-B, this Bayesian model is compared ages recently.

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An agent with a generator is most likely to do nothing; and generator purchases. Because these data have not been
after all, they have power. There is a possibility that an agent collected and because the intent of our study is to under-
with a generator files a complaint if a sufficient fraction stand potential impacts of individual behavior on power
of his or her neighbors lose power. If most neighbors lose outage risk, we rely on sensitivity analysis to evaluate the
power, this suggests that the agent likely lost power too and validity of our model assumptions.
is running a generator. Practically, this is a nuisance because The model is looped M times to reflect an M-year syn-
many generators require fuel, the generator may not pro- thetic record and the entire M-year synthetic history is sim-
vide enough electricity to power the entire demand, and ulated repeatedly until convergence criteria are met.
neighbors may take advantage of this power supply, as
discussed above. I V.   C A SE ST U DY
If a sufficient fraction of agents complain, regulators
take action. Regulators may either issue an information A realistic case study is built primarily to demonstrate
campaign or force the utility to harden its system so outages the types of analyses that can be conducted by the model
are less likely in the future. An information campaign is trig- described in Section III and also to test a small subset of
gered when a certain fraction of agents file a complaint and possible hypotheses. A key advantage of agent-based mod-
is modeled in the following manner. First, a separate model els is provided by the tuning parameters. They may generate
that uses the same frequency and intensity parameters and scenarios that result in unexpected outcomes, and, in some
cases, demonstrate how small adjustments to some param-
synthetic hurricane library is used to estimate each agent’s
eters may produce large effects.
true likelihood of losing power. This is done by simulating
There are two ways to measure customers without
a 100 000-year synthetic record while assuming agents do
power: 1) the sum of all customers who lost power, regard-
not make changes to the system. Once complete, a categori-
less of their generator status; and 2) the sum of all custom-
cal distribution over the likelihood of experiencing no, one,
ers who lost power less the number of customers who lost
or more than one outage in any given year is calculated for
power but own a generator. Both are tracked to reflect how
each agent. This is an agent’s true outage likelihood. This is
the utility performs and how customers fair.
saved and rerun only when the system is hardened or differ-
A small portion of scenarios and results are presented.
ent intensity and frequency parameters are used. Second,
These are intended to reflect the types of hypotheses this
agents’ beliefs on the likelihood of outages are updated. An
model can explore. Additionally, some sensitivity analyses
effective information campaign adjusts the parameters of
are presented to demonstrate how robust the outcomes are
the Dirichlet priors so that the categorical distribution over
to changes to parameters. However, the number presented
their beliefs of an outage is equivalent to their true likeli-
represent relatively few of all possible analyses. More sce-
hood of an outage. A less effective information campaign
narios and sensitivity analyses should be explored when
will adjust the parameters of Dirichlet priors by some frac-
examining a real system.
tion so that their beliefs over outages is a weighted average
of the true outage likelihood and the beliefs held by the
agents previously. A. Case Study Region
If a sufficient fraction of customers lose power or if a Household data from nine counties in the State of
sufficient fraction files a complaint to the regulator— Maryland were collected for the case study. These counties
two forces that are inherently interwoven—the utility is are located in southern and eastern regions of Maryland
required to harden its system. Practically, a utility that and touch the Chesapeake Bay (Fig. 2). In total, 357 000
hardens may trim trees, underground distribution lines, or electric-power customers (households) reside in this region.
upgrade aging components. Advanced and costly hardening Publically available tax-assessor data are used to spatially
treatments, such as moving away from standard radial con- locate each house and to assign each house a value [80].
figurations toward advanced auto-looping with integrated Anne Arundel County is the most populated and is mostly
smart switches, are being considered by some disaster-prone suburban. Ocean City, in Worcester County, has dense
utilities [78]. In this model, when a system is hardened, the housing. The remainder of the region is either suburban or
fraction of customers who lose power is adjusted (lowered) rural. The value of the property is used as a proxy for wealth,
according to the extent of the hardening. with the assumption being that a wealthier agent is more
Because ABMs like ours involve significant assumptions likely to buy a generator. No agents own a generator when
and simplifications regarding human behavior, sensitivity the model is initialized.
analyses were performed to capture the effects of variations The State of Maryland experiences a hurricane every
in these assumptions on the model output. This is done by 11–13 years on average [81]. The majority of those storms
both changing the model’s structure (e.g., adding a neigh- are of Category 1 strength or below by the time they impact
bor scenario) and by repeatedly changing parameter values the region. Hurricane intensity tends to be greatest in
and rerunning the ABM. Complete model validation would the southern-most counties, and especially Somerset and
require extensive historic household data on power outages Worcester Counties.

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Reilly et al . : Hurricanes and Power System Reliabilit y

Fig. 3. Density plot of cumulative number of agents to lose power


Fig. 2. Map of region [79]. Counties in light gray are used in the study.
comparing cases where agents possess availability bias with ones
where they do not. The gray, orange, and blue plots exclude agents
who lost power but own a generator. No hardening is conducted
A 50-year record is used and convergence is determined and wealth is not a factor. The current climate scenario is used.

via the total number of customers to lose power. A 90% con-


fidence level with a relative error of 10% required, approxi-
mately, 125 iterations for each set of parameters. history. The gray plot reflects an unbiased case with no infor-
mation campaign and the orange plot reflects the same, except
with yearly information campaign. The blue plot reflects the
B. Availability Bias availability-biased case. These first three distributions do not
One’s experience during and after a recent hazard can include outages that are prevented because of a generator.
induce mitigation behavior, regardless of how mild or The green distribution reflects all outages, regardless of gen-
strong their experience up to that hazard has been [82]. erator ownership. This last distribution is identical in all cases
This results from an availability bias where beliefs depend because no hardening is ever conducted.
on events that are easy to recall, typically because of their The results may surprise some. The scenario where
recentness [83]. This implies that individuals do not always agents’ beliefs about outages perfectly align with their true
use their entire risk understanding when making the choice risk due to an information campaign (orange) produces
and may underestimate their risk. In this test, the effect of slightly more outages than the scenario where agents rely
this type of availability is compared to agents who are unbi- on their experience to form beliefs (gray). In the case with
ased in their response. In this case, an unbiased agent is one information, agents who are going to purchase generators
who buys a generator when they believe their risk of outages do so at the first opportunity that they have, thus reducing
is sufficiently high based on his or her experience. From a the cumulative outages. In the case where no information
policy stance, this type of tradeoff analysis may assist offi- is disseminated, more generators are purchased overall,
cials in determining whether encouraging mitigation on a and the time when they are purchased, on average, is later
yearly basis is beneficial. than the former case. The reason for this is that given the
In this test, the unbiased case is tested under the following stochastic nature of hurricanes, there are occasions when
conditions: 1) no information campaigns are disseminated, so agents overestimate their risk, especially when strong hurri-
agents use historical observations to estimate their likelihood canes occur in rapid succession which “artificially” increases
of an outage; and 2) an effective information campaign is dis- agent’s Bayesian beliefs regarding their likelihood of one or
tributed yearly, so agents use their true likelihood of an out- more outages. When this overestimate is above their risk tol-
age when making the decision to purchase a generator. Under erance, they buy a generator.
the bias case, an agent buys a generator if he or she has had Agents who possess availability bias are motivated to pur-
at least two outages in the past five years. In order to focus on chase generators, but not at the same rate as the other cases.
mitigation, no complaints are made and no hardening occurs. Under this climate scenario, hurricanes intense enough to
Wealth is not a factor in deciding to buy a generator. The cause significant outages occur infrequently in close succes-
results that follow use the current climate scenario. sion. This may leave agents unprepared for future storms.
Fig. 3 shows the distribution over all replications of the Fortunately, it does appear to cut the cumulative total of
cumulative number of outages over the 50-year synthetic outages in the extreme scenarios in half.

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In reviewing Fig. 3, the scenario where agents are


unbiased with no information yields the least variability in
resulting customers without power. In this scenario, a large
number of replications result in approximately half a mil-
lion customers without power. More variation is observed
in the results of the unbiased with information and biased
scenarios, indicating that the results of these scenarios are
more greatly influenced by the agent’s behavioral response
to the stochastic hurricane simulation than in the unbiased
with no information scenario.

C. A Changing Climate
While significant uncertainty remains, the general con-
sensus is that hurricanes in the Atlantic basin will become
more intense and less frequent in the future. The number
of customers limits the number of outages in any region
and the number of customers in the model is assumed to
be fixed. It is possible, for example, that a more intense
environment will have little impact if the region is already
highly vulnerable to outages (e.g., [65]). In order to simu- Fig. 5. Density plot of cumulative number of agents to lose power
late the possible effects of a changing climate, we exam- comparing cases where agents possess availability bias with ones
where they do not. The gray, orange, and blue plots exclude agents
ined one future climate scenario in which the frequency of
who lost power but own a generator. No hardening is conducted
storms is doubled (Fig. 4) and another scenario where the and wealth is not a factor. The frequency of hurricanes is reduced
frequency of storms declines (to 75% as frequent) while the to 75% and the intensity is increased by 50% over the current
typical storm is 50% more intense (Fig. 5). The same set of climate scenario.
scenarios from Section IV-B are used for these simulations.
We chose these climate scenarios to evaluate the impact of
this sort of significant change in climate assumptions on our The discussion begins with Fig. 4, where the frequency
model, not to attempt to simulate the more likely future cli- is doubled. When more hurricanes occur, the count of the
mate scenario. total number of outages that includes those who own a gen-
erator (green) increases significantly; the mean of the distri-
bution approximately doubles and the variance decreases.
The mean of the distribution for the number of outages
less those agents with a generator for the bias case (blue)
is approximately the same as the current climate scenario,
though the variance is narrower. Under the more intense
climate, there are simply more occasions of multiple hur-
ricanes happening in rapid succession. This leads agents to
believe they are at higher risk for outages. The importance
of this is especially notable in the beginning of the study
period. When more hurricanes happen initially, agents buy
a generator earlier and are not counted later as experiencing
an outage. This contributes to the variance reduction.
The unbiased scenario with information dissemination
(orange) eclipses the scenario without information dissemi-
nation (gray); slightly more agents buy a generator in the
former but the timing in which they make the purchase is
the difference. Here, the agents who ultimately buy a gener-
ator, because their actual risk is greater than what they can
Fig. 4. Density plot of cumulative number of agents to lose power tolerate, do so the first opportunity they have. In the other
comparing cases where agents possess availability bias with ones
case, even an underestimate of risk may result an agent pur-
where they do not. The gray, orange, and blue plots exclude agents
who lost power but own a generator. No hardening is conducted chasing a generator if the underestimate is above their risk
and wealth is not a factor. The frequency of hurricanes is doubled threshold. However, on average, they recognize that their
over the current climate scenario in the plot on the left. risk tolerance is exceeded later.

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Reilly et al . : Hurricanes and Power System Reliabilit y

When the frequency is reduced and the intensity threshold for filing a complaint is kept low to focus on the
increased by 50% (Fig. 5), the mean total number of out- effects of declining collective action due people engaging
ages, including those at houses with a generator (green), in individual action. No information is distributed and the
does not significantly increase over the current climate utility is required to harden when at least 50% of agents file
scenario (Fig. 3). However, the variance increases consider- a complaint. Reliability improvements of 5% and 20% are
ably. The larger variance is primarily linked to experiencing tested. The current climate scenario is used.
fewer but more intense storms—two phenomena that pro- Fig. 6 shows density plots over the set of simulations for
duce opposite consequences. the cumulative number of agents to lose power, including
The biased case (blue) causes slightly more outages on those agents who own and rely on generators. The left shows
average compared to the current climate scenarios. This is results from the case where agents do not buy generators.
in part due to more severe storms, which make some peo- The plot on the right shows the same, except that agents
ple lose power who typically would not under the current whose home is valued above the region’s median consider
climate. Additionally, storms are spaced further apart on buying a generator. The gray distributions show the results
average, making it relatively rare for an agent to “remem- when no hardening is conducted; the plots are identical in
ber” the last outage. That leads them to be more vulnerable both figures. 1.3 million outages are expected in the study
to outages in the future because their bias only uses more region over the time frame, though the distribution is wide.
recent information. The unbiased cases produce results that The orange and blue plots show the results from a 5% and
are close to the baseline conditions. This suggests that under 20% improvement in system performance, respectively.
these conditions, the behavioral response to outages—pur- When the hardening is modest at 5%, having a signifi-
chasing a generator once the threat is computed to be above cant fraction of the population consider purchasing a gen-
one’s threshold—can compensate for the additional hazard. erator does not substantially subtract from the efforts of
collective action. In this situation, 5% improvement is not
D. Collective Versus Individual Action significant enough to dramatically alter the risk landscape,
Even small contingents of agents who purchase genera- even after a few hardening episodes. It is not that the num-
tors reduce the overall all demand for system hardening. ber of people participating in collective action is maintained
This could lead to a situation whereby those agents who (it is not), but that system improvement is inadequate, at
can afford to mitigate do, and the consequences for poorer 5%, to see a substantive reduction to outages. When the sys-
agents are not expected to improve. This tradeoff is demon- tem is improved by 20%, the benefits are obvious, especially
strated via the following scenarios: one where no one buys a when significant collective action is present (left on left).
generator and another where agents whose house is valued In addition to a reduction in the number of outages, which
at least at the median for the region and who have a moder- itself is not surprising, the variance is greatly reduced. In the
ate tolerance of one or more outages buy a generator. The case where no one buys a generator, the number of outages

Fig. 6. Density plot of the cumulative number of agents to lose power, including agents who own a generator. On the left, no agents buy a
generator. On the right, agents whose home is valued above the region's median consider buying a generator. Low thresholds for filing a
grievance and for purchasing a generator (right) are assigned to the agents. The distributions for the no hardening case (gray) are identical.

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Reilly et al. : Hurricanes and Power System Reliabilit y

in the extreme right tail is only slightly more than the mean
of cumulative outages in the case where half the popula-
tion considers purchasing a generator and no hardening is
conducted.
A final note on the plot on the left in which no genera-
tors are purchased: The average number of times that collec-
tive action induces hardening when the improvement is 5%
is 5 times. The average number of times when the improve-
ment is 20% is 2.6 times. This suggests that only a couple
of significant improvements to the system can dramatically
reduce grievance rates and alter the reliability compared to
multiple minor improvements.

E. Influence of Neighbors
One’s neighbors and local community often have sig-
nificant influence over mitigation and preparation behavior.
The act of mitigating sends a signal to others in the com- Fig. 7. Density plots of cumulative number of agents to lose power
munity of how an individual perceives his or her risk and excluding agents who lost power but own a generator for three
neighbor scenarios. The gray plot shows the case where neighbor
may trigger others to follow. This is tested in the following
have no influence over the decisions of others. Case 1 (orange)
manner. In all cases, all agents are allowed to buy genera- shows the effects of when agents are deterred from buying a
tors. The first case is the base case and neighbors have no generator if they can free-ride. Case 2 (blue) shows the effects of
effect. In the second case, those who would otherwise buy a when agents are encouraged to purchase generators when at least
generator (because of their beliefs and confidence about the 50% of their neighbors own one. Hardening is not conducted and
wealth is not a factor. The current climate scenario is used.
risk of one or more outages) refrain if they have a neighbor
within 15 m of their house with a generator. The thought
is that they would be able to free-ride and use a neighbor’s second neighbor case, there are fewer realizations than the
power if needed. However, if they have relied on their other cases. However, it is not significant. In this case, an
neighbor at least twice in the previous ten years, they buy agent’s perception of the risk is fairly aligned with its neigh-
a generator. In the third case, agents buy generators as they bors because of spatial proximity, meaning they often simi-
would otherwise, based on beliefs and confidence in their larly engage in mitigation. Future iterations of this model
beliefs. In addition, they buy a generator if at least 50% of could consider a more complex approach for modeling risk
their neighbors within 75 m own a generator. The final case perception and preferences.
combines the second and the third. This type of analysis
can illuminate a type of emergent behavior—where agent
behavior instantaneously propagates—and can only be seen F. Sensitivity Analysis
from this type of bottom-up approach. In this set of cases, Sensitivity analysis is arguably the key component for
agents buy a generator if they believe they have a moderate deriving maximal benefit from ABMs. It allows the analyst
likelihood of outages. No hardening is conducted. to quantify the degree to which marginal changes to param-
Fig. 7 provides results for the cumulative number of eters—which, in reality, may be random variables—and
outages excluding outages where agents own a generator. small changes to model structure affect system outcomes.
The gray plot demonstrates a scenario where agents do not This, in turn, shows which parameters and model structure
influence one another. The orange plot represents the first are driving the system and which lack substantive influence.
neighbor case, where agents are deterred from buying a gen- This is important not only for behavior models but also for
erator if a close neighbor owns one. The blue plot represents other probabilistic, physical phenomenon. This subsection
the second neighbor case, where agents are encouraged to reexamines a portion of that discussed in Section IV-D.
buy a generator when at least 50% of their neighbors within Specifically, the threshold for filing a grievance and the
100 m owns one. degree to which system hardening reduces the likelihood
All three cases perform approximately the same suggest- of experiencing an outage are perturbed to quantify the sig-
ing that the influence of neighbors would need to be more nificance of these parameters. In this set of experiments, the
significant to have a more pronounced effect. However, the threshold for filing a grievance is raised to a moderate level
right extreme of the three plots highlight the differences. In (i.e., the threshold is set to near the middle of the observed
the first neighbor case, there are more realizations where range of agents’ beliefs for an outages) and then the effec-
much higher than average outages are experienced. This is tiveness of hardening is perturbed, such that hardening has
due to free-riding and prevents agents from acting. In the no impact or decreases the likelihood of an outage by 10%,

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Reilly et al . : Hurricanes and Power System Reliabilit y

Fig. 6 (left). This is interesting because an improvement to


10% has significant impact on the system despite a fewer
number of occasions in which hardening is conducted. This
is because hardening leads to fewer outages which makes
agents less likely to file a grievance and agents have a higher
threshold before they file a grievance.
Returning solely to Fig. 8, it is apparent that as harden-
ing becomes more effective, the expected number of out-
ages declines. However, the marginal decline between 10%
and 15% (orange and blue) is nearly identical to the decline
between 15% and 35% (blue and green), even though the
change in the productivity of hardening in the latter sce-
nario is more substantial. The reason follows. When hard-
ening improves from 10% to 15%, the effect on the number
of outages is initially modest in the runs. However, because
the effect is only modest, agents are likely to file a grievance
again, and with enough mass, system hardening is conducted
again. This is not true when hardening improves from 15%
to 35%. The effect from the first instance of hardening is sig-
Fig. 8. Density plot of the cumulative number of agents to lose nificant, but fewer agents are likely to file grievances in the
power under different hardening scenarios. No agents buy a future. It is atypical hardening is conducted once again. This
generator and agents choose whether to engage in collective
demonstrates the importance of not only hardening, but the
action via grievance. A moderate threshold for filing a grievance is
assigned to the agents. The distribution for the no hardening case cycle of hardening and the agents’ behavioral response to
(gray) is identical to those in Fig. 6. changes in the system.

15%, or 35%. This will assess the influence of both harden- V.   CONCLUSION
ing and behavior, and particularly, whether filing grievances Hurricanes cause widespread and prolonged electric-power
and hardening in combination are impactful. This is espe- outages. The presumption is often that a utility’s reliability
cially valuable, because to date, the link between hardening is a result of its unique hazard landscape and managerial
and reduction in the likelihood of outages has not been stud- decisions. The framework developed in this paper addition-
ied in a statistical sense. In these sets of scenarios, the cur- ally shows how customers’ behavioral response may have a
rent climate condition is used, no generators are purchased, role in shaping this risk landscape. The framework is par-
and no information is disseminated. As in Section IV-D, ticularly powerful because its structure is grounded in the
once 50% of agents file a grievance, the system is hardened. social science literature and it does not necessarily have
Fig. 8 shows the results for the case where the threshold intensive data requirements. Numerous hypotheses can be
for filing a grievance is moderate and for the 0% (gray), 10% explored via sensitivity analyses to see how small changes to
(orange), 15% (blue), and 35% (green) hardening scenarios. the system could produce macrolevel changes. This has the
The gray plots in Figs. 6 and 8 are identical. The orange plot opportunity to provide substantive insight for regulators,
in Fig. 8 has fewer outages on average and the distribution operators, and other decision makers on how the regional
has a lower variance than the comparable orange plot in risk may evolve over time. 

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ABOUT THE AUTHORS


Allison C. Reilly received the M.S. and Ph.D. Chengwei Zhai received the B.S. degree in electri-
degrees in civil engineering and infrastructure cal engineering from Zhejiang University, Zhejiang
systems from Cornell University, Ithaca, NY, USA Sheng, China. He is currently working toward the
and the B.S. degree in civil engineering from The M.S. degree at the Department of Industrial and
Johns Hopkins University, Baltimore, MD, USA. Operations Engineering, University of Michigan,
She is currently an Assistant Professor with Ann Arbor, MI, USA.
the Department of Civil and Environmental Engi- His research interests include risk analysis,
neering, University of Maryland College Park, decision analysis, machine learning, and simulation.
College Park, MD, USA. Her research interests
include risk analysis in urban areas, network optimization, and infra- Seth D. Guikema received the B.S. degree in civil
structure system reliability. and environmental engineering from Cornell Uni-
versity, Ithaca, NY, USA, the M.E. degree in civil
and environmental engineering from the Univer-
sity of Canterbury, Christchurch, New Zealand,
and the M.S. degree in civil and environmental
engineering from Stanford University, Stanford,
CA, USA, and the Ph.D. degree in engineering risk
Gina L. Tonn received the B.S. degree in biological and decision analysis from the Department of
systems engineering from Virginia Tech, Blacks- Management Science and Engineering, Stanford University.
burg, VA, USA, the M.S. degree in management of He was a faculty member with the Department of Civil Engineering,
technology from Vanderbilt University, Nashville, Texas A&M University, College Station, TX, USA, from 2005 to 2007 and
TN, USA, and the Ph.D. degree in geography and a faculty member with The Johns Hopkins University, Baltimore MD, USA,
environmental engineering from The Johns Hop- from 2008 through 2015. He is currently an Associate Professor in the
kins University, Baltimore, MD, USA. Department of Industrial and Operations Engineering with a joint appoint-
She is currently a Postdoctoral Researcher ment in Civil and Environmental Engineering at the University of Michigan,
with the Wharton Risk Management Center, Uni- Ann Arbor, MI, USA. His research focuses on data-driven risk analysis for
versity of Pennsylvania, Philadelphia, PA, USA. Her research interests technical systems, in particular, infrastructure systems impacted by natu-
include risk analysis for natural hazards and infrastructure systems. ral disasters and intelligent attacks.

14  Proceedings of the IEEE

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