Mitigating Stranded Asset Risks to Utility Customers: an Exploration of Securitization and Retiring Coal Generation

Technical Report · Fri Feb 02 04:00:00 EST 2024

DOI:https://doi.org/10.2172/2570678· OSTI ID:2570678

Kline, Kathryn ^[1]

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1. National Association of Regulatory Utility Commissioners, Washington, DC (United States)

Coal generation currently accounts for approximately 19.5 percent of electricity generated in the United States, down from 51.7 percent of the generation mix in 2000. In 2023, the EIA expects 8.9 gigawatts (GW) of planned retirements of coal-fired capacity. Many of the coal-fired power plant retirements that have already occurred or are planned for the next decade will be plants that have not yet reached the end of their useful life, and are therefore not fully depreciated. Ensuring that utility customers do not face an undue burden in paying for these stranded assets will become an increasingly important issue over the next few years for PUCs overseeing the safety, reliability, and affordability of investor-owned utility service. This report reviews the role that securitization can play in reducing the costs associated with stranded assets due to early coal plant retirements.

• Research Organization: National Association of Regulatory Utility Commissioners, Washington, DC (United States)
• Sponsoring Organization: USDOE
• DOE Contract Number: FE0032095
• OSTI ID: 2570678
• Report Number(s): DOE-NARUC--0032095
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
29 ENERGY PLANNING, POLICY, AND ECONOMY
Coal
Securitization