PSC chief warns NY utilities face write-off losses. (New York Public Service Commission chief John O'Mara)

Crain's New York Business, December, 1996 by Lentz, Philip

Stranded-asset recovery predicated on their adapting to competition New York's electric utilities had better steel themselves for financial losses as the Pataki administration moves to deregulate the state's electric industry. That's because the state Public Service Commission is unlikely to permit full recovery of utilities' so-called stranded assets - primarily capital and independent power costs - in a competitive electric market, according to PSC Chairman John O'Mara.

But as an inducement to the utilities, Mr. O'Mara said in an interview that the faster the companies embrace energy competition and lower rates, the more stranded-cost recovery they will be allowed by the PSC. "To ensure themselves of better recovery of stranded costs," Mr. O'Mara said, "they're...

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