Stranded costs

In discussions of electric power generation deregulation, the term stranded costs represents the existing investments in infrastructure for the incumbent utility that may become redundant in a competitive environment. A large, incumbent monopoly electric power utility will have made substantial investments over the years and will carry debt. The market cost of electricity includes payments on this debt.

单词	Stranded costs
释义	Stranded costs 英语百科 Stranded costs In discussions of electric power generation deregulation, the term stranded costs represents the existing investments in infrastructure for the incumbent utility that may become redundant in a competitive environment. A large, incumbent monopoly electric power utility will have made substantial investments over the years and will carry debt. The market cost of electricity includes payments on this debt.
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