Depreciation Considerations When Managing Potential Stranded Costs

Publication Preview

The prevalence of legislation targeting greenhouse gas emissions has become a significant risk factor for natural gas and electric generation utilities throughout North America. At the time of writing, 15 U.S. states have committed to reducing greenhouse gas emissions by various dates, often with targeted reductions occurring between 2030 and 2050.1 These targeted deadlines are looming closely throughout the industry.

As of the time of this paper, there are few, if any, utilities currently collecting tolls that properly account for the upcoming expected wave of, and stranded costs related to, retirements due to climate change initiatives. Without immediate action, utilities may soon find themselves with large amounts of stranded costs.

Download the report to learn more about the potential use of proactive solutions to address climate change tolling concerns, thus reducing the need and risk inherent in relying upon retroactive approaches.


1 National Conference of State Legislatures; “Greenhouse Gas Emissions Reduction Targets and Market-based Policies”; January 1, 2020

Click To View The Full Publication

Newsletter Sign Up