Stranded costs

 

 

 

Stranded costs

 

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Stranded costs

 

Meaning of term stranded costs

Prudent costs incurred by a utility which may not be recoverable under market-based retail competition. Examples are undepreciated generating facilities, deferred costs, and long-term contract costs.

 

Source: http://www.desc.dla.mil/dcm/files/all%20inclusive%20energy%20glossary.xls

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Stranded costs