College of Behavioral & Social Sciences

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Using Auctions to Divest Generation Assets
(Elsevier Science, 1997-12) Cameron, Lisa J.; Cramton, Peter; Wilson, Robert
In most states, ratepayers will compensate utilities for their stranded costs. As a result, these costs must be measured as accurately as possible, in a manner that is easily understood by all concerned parties. We describe the options for measuring stranded costs and argue that a simultaneous ascending auction is the best approach.