Independent Market Monitors: Organized Wholesale Markets Competitive, Delivering Consumer Benefits

The independent market monitors for every Independent System Operator (ISO) and Regional Transmission Organization (RTO) in the country have once again found that organized markets are competitive, and provide economic benefits to consumers. The findings were based on detailed reports for 2009, and were highlighted by the Electric Power Supply Association.
 
The annual reports from America’s seven organized markets note that the wholesale markets appropriately reflected lower fuel prices, and passed these competitive power options along to consumers, with electricity prices dropping roughly 50 percent from 2008 to 2009. Multiple states have reported increased consumer switching rates so far in 2010, as the upward trend of empowered customers shopping for the best possible electricity rates continues.
 
Today, more than two-thirds of the nation’s electricity consumers live or do business in states that are a part of these organized competitive wholesale and retail electricity markets. These states have restructured their markets to promote competition among energy market participants while maintaining strict regulatory oversight. Competitive markets have experienced a surge in clean energy options and smart grid investments, and have helped mitigate new peak demand energy use records set during summer heat waves across the country.
 
As momentum builds to increase competition across the country, policymakers can turn to results like the independent market monitor reports on competitiveness for proof that consumer benefits and consumer protection can go hand in hand.

Joel Malina | August 31, 2010