After Cajun, what next for stranded costs?

Journal Article · Sat Oct 01 04:00:00 EDT 1994 · Electricity Journal

DOI:https://doi.org/10.1016/1040-6190(94)90057-4· OSTI ID:35552

Pembroke, J D

Members of FERC have said that the Cajun decision does not pose a serious problem to its proposed rulemaking on stranded costs. But the D.C. Circuit`s Cajun decision, criticizing the concept of recovery for stranded investment in broad terms, promises to make that task difficult, if not impossible. The United States Court of Appeals for the District of Columbia Circuit, in its July 12, 1994 opinion in Cajun Electric Power Cooperative, Inc. v. Federal Energy Regulatory Commission, subjected the Entergy Corporations`s transmission tariff`s stranded investment provision to broad and, perhaps, fatal criticism. The Cajun opinion, premised on basic concepts of antitrust law, was issued at a time of substantial industry discussion on the concept of stranded investment and should greatly impact the decisions of both federal and state regulators on stranded investment.

• OSTI ID: 35552
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 8 Vol. 7; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPETITION
COST RECOVERY
ELECTRIC POWER INDUSTRY
ELECTRIC UTILITIES
INVESTMENT
LEGAL ASPECTS
REGULATIONS