Stranded investment and non-utility generation

Journal Article · Tue Jun 01 00:00:00 EDT 1999 · Electricity Journal

DOI:https://doi.org/10.1016/S1040-6190(99)00032-9· OSTI ID:6311235

Dismukes, D E ^[1]; Maloney, M T ^[2]

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1. Louisiana State Univ., Baton Rouge, LA (United States). Center for Energy Studies
2. Clemson Univ., SC (United States)

Stranded cost recovery continues to be a focal point of electricity deregulation. Restructuring has ground to a halt in many places largely due to the contentiousness of the issue, and even where there has been action states have granted substantial stranded cost recovery to utilities, vitiating much of the price reductions that competition is forecast to bring. While a surprisingly large amount of non-utility generation capacity already has been shut down due to obsolescence, this has not choked off capital investment. The example suggests that stranded-cost recovery is neither warranted nor necessary.

• OSTI ID: 6311235
• Journal Information: Electricity Journal, Vol. 12:5; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
CAPACITY
COST RECOVERY
DUAL-PURPOSE POWER PLANTS
ELECTRIC UTILITIES
INVESTMENT
POWER PLANTS
PUBLIC UTILITIES
296000* - Energy Planning & Policy- Electric Power