ABACCUS Report Identifies Success of Competitive Electricity Markets

Competitive electricity markets are driving innovation, stimulating new investment, and delivering customer choice across North America, concludes the 2010 Annual Baseline Assessment of Choice in Canada and the United States (ABACCUS).
 
The annual study, issued by the Distributed Energy Financial Group, finds customer choice thriving in restructured electricity markets because competition has combined with regulatory structures to introduce new products and services largely unavailable in monopoly utility markets. The analysis and report defined success through several topics, including retail market status, wholesale market competition, default or standard service design, and facilitation of retail choice.
 
“The ABACCUS report highlights the ability of competitive electricity markets to successfully deliver economic and environmental benefits to consumers.  Competition continues to create unparalleled technological innovations, stimulating investment in clean energy infrastructure, and increasing competitive electricity supply options,” said Federico Pena, COMPETE Co-Chair and former U.S. Secretary of Energy.  
 
ABACCUS identifies innovative products and services available to customers in these markets, including the ability to lock in prices for a year or more, index energy prices, generate clean energy, stimulate distributed power generation, offer greater reliability and the opportunity to participate in bulk power markets.
 
In addition, ABACCUS notes market forces created significant economic benefits in 2010. Consumers were better able to take advantage of lower overall fuel prices through competitive rate offerings, and energy efficiency and demand response programs continued to grow in many organized markets. These benefits not only enable consumers to reduce their electricity costs, but also lessen the need for new generation investment.
 
ABACCUS ranked and assessed individual state market success in both the commercial and industrial (C&I) and residential market segments. The report ranked multiple states as “excellent” or “good” in implementing choice and ensuring customers have access to robust competition. These results echo a recent study sponsored by COMPETE which showed that, since 2000, the volume of electricity sales by competitive utility suppliers jumped from zero to 15 percent, and competitive suppliers are increasingly offering innovative products and services to consumers. 
 
Several of the report’s more notable recommendations suggest federal and state policymakers support the application of competitive market forces. As lawmakers and regulators weigh policy options for consumers and the electricity industry, COMPETE urges them to weigh this report’s findings and suggestions to best serve their constituents.

Joel Malina | December 7, 2010