Getting it right: Filling the gaps in FERC's stranded cost policies

Journal Article · Sat May 01 04:00:00 EDT 1999 · Electricity Journal

DOI:https://doi.org/10.1016/S1040-6190(99)00029-9· OSTI ID:20013725

Gordon, K; Olson, W P

FERC is currently at a cross-road: It must implement its stranded cost policies properly or the comprehensive approach that Order 888 represents will not be credible. In this context, it is important to remember that public policies aimed at introducing competition into electricity markets will proceed more quickly and effectively if the regulatory bargain is kept. Thus, any plan to introduce competition in electricity must honor existing commitments and provide utilities with a reasonable opportunity to recover prudently incurred investments. By closing the gaps in its stranded cost recovery policies in economically appropriate ways, FERC can reaccelerate the movement to efficient competition in generation markets.

• Research Organization: National Economic Research Associates, Cambridge, MA (US)
• OSTI ID: 20013725
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 4 Vol. 12; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPETITION
DEREGULATION
ELECTRIC UTILITIES
PRICES
PRICING REGULATIONS
US FERC