The line item on your utility bill that represents the recovery of stranded costs. see also: Stranded Costs
A charge on every customer's bill designed to recover a local utility's transition or stranded costs as determined by the PUC/PSC.
The Transition Charge provides a mechanism for utilities to recover a portion of their lost revenue that results from customers switching to alternative power supply options versus continuing to receive all of their power and energy needs from the local utility as a bundled product. The Transition Charge only applies to customers that elect Delivery Services and is expressed as a cents per kWh charge which is applied to all delivered kWh. Illinois electric utility companies are allowed to collect Transition Charges through the end of 2006. Sometimes also called Competitive Transition Charge (CTC).
A charge on every customer's bill designed to recover an electric utility's transition or stranded costs as determined by the Public Utility Commission.
A mechanism to assure fairness and stability for existing utilities as we shift to a new market structure. The net effect of transition charges will fall on customers who change suppliers during the transition phase. The purpose is to avoid cost-shifting, and to enable existing utilities to retire debt and compete fairly.
A fee paid by customers to their local distribution company when they elect to purchase generation services from an AES. It allows the utility to recover stranded costs and implementation costs. Stranded costs are utility charges that were to be recovered over time through regulated rates that would not otherwise be collected from customers that buy their generation services from an AES.
An element of a utility bill designed to cover stranded costs as the industry transitions to a competitive market.
Mechanism by which stranded costs continue to be paid by customers who switch to another supplier. These costs include implementation costs required to facilitate retail access.
The transition charge, also known as stranded costs, are the costs of past utility investments including power plants and power contracts. These charges were included in electric rates before competition. Because these costs cannot be fully recovered in a competitive market, stranded costs are temporary expenses that are included in the transition charge on your electric bill. These charges will be reduced over time.
