Stranded cost recovery and competition on equal terms

The weak competitive neutrality issue, which has heretofore been the centerpiece of the debate, should now be put aside. It is time to focus on getting the stranded cost number right, so that the transition to competition may truly begin on equal terms.

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Published inThe Electricity journal Vol. 9; no. 10; pp. 61 - 70
Main Authors Tye, William B., Graves, Frank C.
Format Journal Article
LanguageEnglish
Published Seattle Elsevier Inc 01.12.1996
Elsevier
Elsevier Science Ltd
SeriesThe Electricity Journal
Subjects
Competition
Cost recovery
Deregulation
Electric utilities
Stranded investment
Studies
United States > US
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Abstract The weak competitive neutrality issue, which has heretofore been the centerpiece of the debate, should now be put aside. It is time to focus on getting the stranded cost number right, so that the transition to competition may truly begin on equal terms.
AbstractList Weak competitive neutrality is so robust that it has little discriminatory power to say what the level of revenue recovery ought to be. The weak competitive neutrality issue, which has heretofore been the centerpiece of the debate, should simply be put aside. Instead, the focus must be getting the stranded cost number right. The real tasks ahead are: 1. achieving administratively feasible ways of correctly measuring and recovering stranded costs and 2. achieving effective competition in the wholesale market for power, so that the transition to competition may truly be on equal terms.
The weak competitive neutrality issue, which has heretofore been the centerpiece of the debate, should now be put aside. It is time to focus on getting the stranded cost number right, so that the transition to competition may truly begin on equal terms.
Author Tye, William B.
Graves, Frank C.
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Snippet The weak competitive neutrality issue, which has heretofore been the centerpiece of the debate, should now be put aside. It is time to focus on getting the...
Weak competitive neutrality is so robust that it has little discriminatory power to say what the level of revenue recovery ought to be. The weak competitive...
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StartPage 61
SubjectTerms Competition
Cost recovery
Deregulation
Electric utilities
Stranded investment
Studies
Title Stranded cost recovery and competition on equal terms
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