What are stranded and market transition costs?
Stranded costs are the investments utilities have made in generation facilities; investments they will not be able to get back if their customers switch to another generation source. The investor-owned utilities in Ohio have estimated their stranded costs at more than $10 billion. Market transition costs are anticipated expenses incurred by utilities during the initial introduction of deregulation, from January 1, 2001 through December 31, 2005. Any stranded costs and transition costs approved by the PUCO will be charged back to all investor-owned electric customers, not just the customers that chose to switch to another supplier of electricity.
