About COMPETE: Competition in Electricity Markets

The COMPETE Coalition is 793 electricity stakeholders, including customers, suppliers, traditional and clean energy generators, transmission owners, trade associations, technology innovators, environmental organizations and economic development corporations – all of whom support well-structured competitive electricity markets for the benefit of our country.

COMPETE's leadership team is composed of several individuals who have helped shape energy policy for decades. They work together with coalition members to drive innovation and consumer benefits in our nation’s electricity markets.


What are Competitive Electricity Markets?

Competitive electricity markets are well-structured with effective oversight, deliver economic and environmental benefits to consumers. These markets have been restructured to promote competition among energy market participants, while maintaining strict regulatory oversight.


In competitive markets, power suppliers compete against each other to provide the best possible service at the lowest cost in order to attract and retain customers. Comparatively, in monopoly-regulated states, incumbent power providers have no incentive to innovate or lower costs because ratepayers are captive to their monopoly-protected supplier.

Competition's Benefits

Competition in electricity markets fosters innovation, clean energy solutions, green jobs, and competitive rates. It also enables retail customers to shop for innovative energy management solutions and helps lower costs and preserve jobs.



Competitive markets encourage innovative solutions required to meet America's electricity needs and environmental objectives.

  • National energy demand is expected to rise as a result of economic growth and advancements in technologies like electric vehicles and consumer electronics.
  • Competition breeds innovative solutions to energy and environmental needs through advances in energy efficiency, storage, and generation smart grid technology
  • Competition encourages private investment in new clean energy generation which creates new power sources and green jobs to diversify our economy, with fewer emissions and less dependence on fossil fuels.



Significant investment is needed to reach our nation’s sustainable energy goals and maintain electric reliability. In organized competitive markets, investors bear financial risk, not ratepayers.

  • In monopoly states, protected utilities recover the cost of their investment plus profit from captive ratepayers, who bear the risk of investment decisions and little incentive exists to prevent cost overruns and project delays.
  • In organized competitive markets, utilities are not guaranteed a profit and are dependent upon market returns to recoup their investment. Consumers are protected from the risk of poor or failed investment decisions.


Clean Energy

Unique characteristics of organized competitive electricity markets enable clean energy generation to thrive.

  • Competitive markets offer advantages to clean energy providers like transparent and real-time pricing, fair and clear rules, a wide geographic footprint, and access to long-distance transmission
  • In competitive retail electricity markets, customers can choose from a variety of power suppliers who offer various green, sustainable, and cleaner energy sources.
  • In monopoly-protected states, ratepayers are locked into the power sources chosen by their monopoly utility company.