Value creation through stranded asset migration: the successful example of the ‘baby bells’

The electric utility industryʹs expected transition from regulation to competition in the power generation market has raised, in volumes of commentary, the issue of stranded assets. The focus of this commentary, however, is invariably misplaced. Instead of, ‘Who should eat the loss, shareowner or customer?’ the question should be, ‘How can the write-off create value for both the customer and the shareowner?’