Stranded cost recovery in electricity market reforms in the US

C. K. Woo, D. Lloyd, R. Karimov, A. Tishler

Research output: Contribution to journalArticlepeer-review


An important element of an electricity market reform is stranded cost recovery. This paper explains the cause of stranded costs, describes four recovery mechanisms, evaluates these mechanisms using the criteria of recovery certainty, economic efficiency and equity, reviews the financial performance of 12 utilities in the US in connection to stranded cost recovery, and shows why the mechanism used in California has contributed to the reform failure in that state.

Original languageEnglish
Pages (from-to)1-14
Number of pages14
Issue number1
StatePublished - Jan 2003


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