Cameron, Lisa J.Cramton, PeterWilson, RobertIn 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.en-USelectric power industrystranded costsregulationutilitiesauctionsArticle