on wholesale pricing differences between RTO and non-RTO markets:
COMPETE Executive Director Joel Malina issued the following statement in reaction to a study released by the Technology Policy Institute on wholesale pricing differences between RTO and non-RTO markets:
Washington, D.C. - The U.S. electricity sector will play a “major role” in any national greenhouse gas mitigation plan enacted by Congress, but prolonged regulatory uncertainty threatens the industry’s ability to efficiently meet this impending challenge, Paul Joskow, respected Massachusetts Institute of Technology economist and president of the Alfred P. Sloan Foundation, said in an address Friday at the National Press Club in Washington, D.C.
COMPETE Welcomes Conversation on Benefits to Consumers From Organized Regional Wholesale Power Markets
The COMPETE Coalition today welcomed a filing before the Federal Energy Regulatory Commission by large industrial energy users and other interest groups as potentially setting the stage for a conversation that will help highlight the tangible consumer benefits of organized regional wholesale electricity markets.
In response to a briefing on rising power plant costs at the Federal Energy Regulatory Commission (FERC) today, the COMPETE Coalition issued the following statement from William Massey, former FERC Commissioner and counsel to COMPETE:
New U.S. Department of Energy and National Renewable Energy Laboratory reports
Two recent reports by the U.S. Department of Energy and the National Renewable Energy Laboratory unambiguously confirm that competitive markets are the most fertile environment for the growth of clean energy sources such as wind.
Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs) supply two-thirds of the U.S. population with wholesale electricity. They ensure that electricity markets are efficient and fair for all market participants and that bulk power systems are reliably operated. ISOs and RTOs provide incentives that lead to the more efficient operation of electric generators and the bulk power transmission system. In turn, these efficiencies enhance power system reliability and put downward pressure on wholesale electricity prices.
Appeals to the “good old days” of cost-plus utility regulation ignore the inherent shortcomings of traditional regulation that led to restructuring in the first place.
Deregulation or restructuring of retail electricity markets generally began in the mid-1990s. Retail regulation is a state issue and not all states chose to pursue competitive markets for retail customers. Where they did, various methods of deregulation were used, which has resulted in different market structures throughout the country.
Competition is the bedrock of our nation’s economic prosperity and stability.1 Well-structured, competitive electricity markets produce important benefits for consumers: improved price signals; more downward pressure on prices as contrasted with prices charged in fully regulated markets; new infrastructure investment; enhanced reliability; better demand management; more effective conservation and energy efficiency; increased supply options, new market entrants, innovation and technological advancements; and improved environmental performance.