Using Auctions to Divest Generation Assets

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"Using Auctions to Divest Generation Assets," (with Lisa J. Cameron and Robert Wilson) Electricity Journal, 10:10, 22-31, December 1997.

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Abstract

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.

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