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Title: Factors that affect electric-utility stranded commitments

Abstract

Estimates of stranded commitments for U.S. investor-owned utilities range widely, with many falling in the range of $100 to $200 billion. These potential losses exist because some utility-owned power plants, long-term power-purchase contracts and fuel-supply contracts, regulatory assets, and expenses for public-policy programs have book values that exceed their expected market values under full competition. This report quantifies the sensitivity of stranded- commitment estimates to the various factors that lead to these above- market-value estimates. The purpose of these sensitivity analyses is to improve understanding on the part of state and federal regulators, utilities, customers, and other electric-industry participants about the relative importance of the factors that affect stranded- commitment amounts.

Authors:
; ;
Publication Date:
Research Org.:
Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
Sponsoring Org.:
USDOE, Washington, DC (United States)
OSTI Identifier:
397127
Report Number(s):
ORNL/CON-432
ON: DE97050125
DOE Contract Number:  
AC05-96OR22464
Resource Type:
Technical Report
Resource Relation:
Other Information: PBD: Jul 1996
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING AND POLICY; ELECTRIC UTILITIES; ECONOMICS; LOSSES; COST; CONTRACTS; SENSITIVITY ANALYSIS; MARKET; SUPPLY AND DEMAND; FINANCIAL DATA; PROFITS; EXPENDITURES; INCOME; RETAIL PRICES; WHOLESALE PRICES

Citation Formats

Hirst, E, Hadley, S, and Baxter, L. Factors that affect electric-utility stranded commitments. United States: N. p., 1996. Web. doi:10.2172/397127.
Hirst, E, Hadley, S, & Baxter, L. Factors that affect electric-utility stranded commitments. United States. https://doi.org/10.2172/397127
Hirst, E, Hadley, S, and Baxter, L. 1996. "Factors that affect electric-utility stranded commitments". United States. https://doi.org/10.2172/397127. https://www.osti.gov/servlets/purl/397127.
@article{osti_397127,
title = {Factors that affect electric-utility stranded commitments},
author = {Hirst, E and Hadley, S and Baxter, L},
abstractNote = {Estimates of stranded commitments for U.S. investor-owned utilities range widely, with many falling in the range of $100 to $200 billion. These potential losses exist because some utility-owned power plants, long-term power-purchase contracts and fuel-supply contracts, regulatory assets, and expenses for public-policy programs have book values that exceed their expected market values under full competition. This report quantifies the sensitivity of stranded- commitment estimates to the various factors that lead to these above- market-value estimates. The purpose of these sensitivity analyses is to improve understanding on the part of state and federal regulators, utilities, customers, and other electric-industry participants about the relative importance of the factors that affect stranded- commitment amounts.},
doi = {10.2172/397127},
url = {https://www.osti.gov/biblio/397127}, journal = {},
number = ,
volume = ,
place = {United States},
year = {Mon Jul 01 00:00:00 EDT 1996},
month = {Mon Jul 01 00:00:00 EDT 1996}
}