Definition of Stranded costs

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TeachMeFinance.com - explain Stranded costs



Stranded costs

The term 'Stranded costs' as it applies to the area of energy can be defined as ' Costs incurred by a utility which may not be recoverable under market-based retail competition. Examples include undepreciated generating facilities, deferred costs, and long-term contract costs'.

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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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