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}
}