In Pennsylvania, Political Strange Bedfellows Champion Competitive Markets

Competition in the regions of Pennsylvania where rates caps have expired has yielded “greater choice and better values,” and this trend will only continue as rate caps around the state expire in 2010 and 2011, the Presidents and CEOs of the Commonwealth Foundation and PennFuture (Matthew Brouilette and Jan Jarrett) detail in an op-ed in today’s Harrisburg (PA) Patriot-News.

The conservative Commonwealth Foundation is focused on economic policy, while PennFuture advances environmental causes. These political strange bedfellows agree that competitive energy markets help address both of their objectives.

On an issue where these typically disparate groups find common ground, they write, “During the past decade there has been nearly three times as much wind energy produced in regional competitive markets than in closed markets. The old system offers little incentive for improvements in efficiency or advanced research. Competitive electricity markets drive innovation, helping us meet bold energy goals that benefit consumers and the economy.” Brouilette and Jarrett offer some interesting facts from states where there are competitive markets:

• In Pennsylvania, when competition was enacted in 1996, electric rates were 15 percent above the national average. Today, they are about 5 percent below the national average.
• In Maryland, customers shopping for electricity are paying close to 2 cents less per kilowatt-hour compared with those who stayed with their default service provider.
• In Massachusetts, competition saved customers $1.1 billion from 1998 through the end of 2004.
• And in Texas, the average customer can now choose from 28 electricity providers compared with only four in 2002.

COMPETE applauds the recognition of the value of competition in Pennsylvania, and hopes to see this trend continue in markets around the country.

Joel Malina | November 9, 2009