Cross-subsidization

  This refers to the transfer of assets or services from the regulated portion of an electric utility to its unregulated affiliates to produce an unfair competitive advantage. Also, cross-subsidization can refer to one rate class (such as industrial customers) subsidizing the rates of another class (such as residential customers).

Energy terms . 2014.

Look at other dictionaries:

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  • cross-subsidy — cross subsidization UK US (UK also cross subsidisation) noun [U] FINANCE ► a situation in which profits from one activity are used to pay for another activity that is losing money or making less money: »He wants to end the cross subsidization of… …   Financial and business terms

  • cross-subsidize — or cross subsidise verb subsidize (a business or activity) out of the profits of another business or activity. Derivatives cross subsidization noun cross subsidy noun …   English new terms dictionary

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