The utility makes the capital expenditure to install the distribution equipment and recovers its investment as the user buys electricity.

Today, the utility has recovered financially and reports nearly $1 billion in revenue and $2 billion in assets.

By contrast, the administration's plan calls for a 5 to 10 percent rate reduction, and would allow utilities to recover 100 percent of their stranded costs.

However, in reality, few utilities recover their costs.

First, he said, was a bill to allow utilities to recover money spent on conservation, as well as allowing profits on other activities to increase.

About half of the states have already passed competition plans, but utility lobbyists focused on persuading legislators to allow utilities to recover their stranded costs.

Under current rate regulation, utilities recover their construction costs in the first few years, leading to rate shock for consumers when a new plant begins operating.

The utility did not even recover its recurrent cost and had an operating loss.

Despite the extremely low tariff, the utility recovered more than its operating cost.

Few utilities do recover all their costs.