Stranded Costs
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Also known as transition costs. Costs that a utility has an obligation to pay for (e.g., long-term contracts or payments on a generation plant), but may not be able to recover in a competitive market where rates are no longer set by regulatory bodies. They are considered a major hurdle to full deregulation and retail wheeling. In the gas industry, these became known as Gas Supply Realignment Costs (GSR).
