How the FERC's RTO case has split the PUCs into five warring factions.
With momentum building for competition in retail energy markets, and with the real authority seeming to shift to...
PG&E's tariff becomes 50 percent higher than PacifiCorp's. Clearly, the inclusion of stranded investment charges in transmission tariffs will make a significant difference for customers in a high-cost utility's service territory.
Our translation of stranded investment and liabilities into a transmission charge does not, however, represent the amount of stranded investment that a specific customer might pay to leave the system. Stranded investment charges will vary according to the assets used to serve a specific class of customers. Determining this allocation of costs will involve complex analyses, subjectivity, and prolonged disputes between utilities and their customers. As a result, the evolution of competition in the retail power market might slow down as customers deliberate whether to continue with their high-cost utility or pay a stranded investment charge in their transmission rate. t
William Townsend and Christopher Seiple are senior associates at Resource Data International, Inc., a Colorado-based firm that maintains databases and analyzes trends in the utility industry.
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