Andrew Kleit

The state of Texas scored an “excellent” in an independent assessment of restructured electric markets — proving to be one of the most successful states in providing the benefits of retail choice to customers. The report, issued by the Energy Retailer Research Consortium this month, highlights how Texas has made outstanding progress by adopting rules to encourage numerous power producers and retailers to compete for customers and provide a variety of electricity services.  In addition, a recent op-ed in the Arizona Republic by Andrew Kleit, a professor of energy and environmental economics at Pennsylvania State University, further underscored the “remarkable” results in Texas.

However, a Fort Worth Star-Telegram article this week downplays this significant progress and instead focuses on a simplistic comparison of electricity costs in Texas versus neighboring states.  This narrow view undervalues the significant economic and environmental benefits the Texas market is providing the state’s consumers. 

Open Arizona's electricity market to competition.  That’s the message from Andrew Kleit, a professor of energy and environmental economics at Pennsylvania State University, in an op-ed he authored this week for the Arizona Republic.

Like many states, Arizona is facing a demand crisis.  Some experts indicate that the state will need 3,000 megawatts of additional generating capacity by 2019, nearly a 50 percent increase in just 10 years.  In addition, Kleit notes that Arizona "has ambitious plans to make its electricity grid 'greener,' which will require significant investment in solar and wind power."

A key Arizona legislator is pressing to reopen the state’s electric markets to full competition in order to spur job growth, reduce emissions, encourage innovation and reduce costs for consumers. Representative Lucy Mason of Prescott, chair of the House Water and Energy Committee, recently held a legislative forum that cited a report by the Goldwater Institute to urge competition in the state’s electricity market.

The Goldwater Institute report, Opening the Grid: How to Recharge Arizona's Electricity System for the 21st Century, was authored by two respected economists and finds that electricity restructuring has been successful in Britain, Texas and Pennsylvania, and would work in Arizona if the state’s electricity market was open to competition.