Transmission Services

Stranded Cost Recovery

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Definition

The mechanism under §26 of the OATT allowing a Transmission Provider to recover costs that become uneconomic ('stranded') when a wholesale customer departs to purchase power from a new supplier using open-access transmission. Consistent with FERC Order 888, stranded costs may be charged to the departing Transmission Customer, but any specific proposed charge must be separately filed under Section 205 of the Federal Power Act for Commission review and approval.

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Topic Deck

Transmission Services

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Source

FERC Pro Forma OATT / LGIP

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