Stranded costs

Der Begriff wird überwiegend im Bereich Energieversorgung (Stromerzeugung) verwendet. In einem regulierten Markt haben Energieversorgungsunternehmen in der Regel ein . An incumbent electric power utility will have made substantial investments over the years and will . Viele übersetzte Beispielsätze mit stranded costs – Deutsch-Englisch Wörterbuch und Suchmaschine für Millionen von Deutsch-Übersetzungen. Costs incurred by a utility company, such as an electric company, in building new generation plants and increasing capacity, which the company is not able to recoup because of changes in regulations.

For example, a power plant may have been built when prices were regulated and the utility was able to accurately predict . Stranded costs are calculated . Companies of all types have to make costly decisions about planning and construction that depend on a certain set of market conditions. When those conditions change, the viability of those plans can also change. And when a change as dramatic as deregulation of a . What are stranded costs , and why have they received such scant treatment in the economics literature?

A general definition is that they are any investment that will be less valuable under competition than under regulation. Two of the academic writers on this topic say that stranded costs are those costs that the utilities are .

In the American Heritage Dictionary (Second College Edition), the definition of . Parent may be left with a disproportionate cost structure after sale. A rigorous examination of SGA and shared service functions is essential to achieving cost reductions as a corporation shrinks due to a restructuring or divestiture. This article provides a concise checklist of key principles to consider when conducting a divestiture.

The purpose of this article is to review the major in the literature regarding stranded costs. Despite the starting differences in the areas of research included in the paper, they have one characteristic in common: all recognize that during the last decades, the treatment of stranded costs has been one of the most. State aid linked to stranded costs.

Estimates of these costs run from the tens to the hundreds of billions of dollars. Should regulators permit utilities to recover . The costs accumulated by electricity utilities that have built expensive power plants and entered into high-priced power purchase agreements, which are no longer commercially viable when competition forces prices down and reduces market share. Congressional Budget Office Twitter Congressional Budget Office Congressional Budget Office Slideshare Congressional . Erlösminderungen für Investitionen oder Rechtsgeschäfte, die infolge einer Marktöffnung oder Deregulierung entstehen. This Issuesletter evaluates the stranded costs that regulated distribution utilities incur during the transition to competition, including risk allocation in the context of retail wheeling, flexible . One of the most controversial issues associated with restructuring the electric industry is the determination and recovery of stranded costs.

Accordingly, this chapter looks at the possible options that can be used to mitigate the . Over the past half century, energy law has endured many stranded cost experiments, each helping firms and customers adjust to a new normal. Perhaps the most contentious issue facing the policy community is the recovery of so-called stranded costs.

One of the most difficult and controversial aspects of electric industry restructuring involves the determination and treatment of stranded costs and stranded margins. And they neglect the reality of internal competition for resources that can flare up between the managers who are staying and those who are leaving. Management and the board can get so caught up in the sale that the core business begins to suffer from neglect.

All in all , divestiture turns out . Energy law is well equipped to facilitate the transition to a decarbonized grid. However, these past experiments have contributed to a myopic regulatory approach . Probably the most contentious issue in the negotiations leading up to the restructuring legislation was how to deal with “ stranded costs.