Stranded investment estimates vary widely depending on the methodology used and assumptions made. Different market price estimates yield different stranded investment results. Lessons from England Much of the debate on stranded investment centers on nuclear facilities, which many people believe will be uncompetitive in a deregulated market. Consumers Union says both extremes unfair and anti-competitive. In fact, rates based on time of day pricing will be higher than at peak usage than average rates.
Universal service is assured only if a new surcharge is paid by consumers.
The first goal should be to reduce and then to fairly share stranded investment. It also puts investor owned utilities on a par with co-ops and munies who have strong incentives to reduce potential stranded investments because their owners and customers are one in the same. When utilities give discounted rates to large customers the law prohibits shifting of costs on to other customers. In other words, a utility may discount a rate as steeply as it wishes but only if the utility, rather than other customers, bears the losses. Enron has stated the CTC as the reason it left the residential market.