Energy
Dictionary

 


stranded margins

The opposite of stranded costs; additional and unexpected revenue that could be received by a utility in a deregulated marketplace from assets and investments which it originally scheduled or purchased for use in a regulated environment. Stranded costs are a potential threat to energy companies when regulatory environments change. Stranded margins are a potential benefit, and if these margins are large enough, legislative intervention may be required to insure that these margins don't give an existing utility an unfair advantage in a newly-competitive marketplace.

See also:

stranded costs, deregulation