ISO-NE

Competition is helping the nation’s organized markets weather this summer’s peak electricity demands as heat waves gripped much of the country. Both private investment and innovative demand response technology, two of the most distinct benefits of competitive markets supported by the transparent price signals markets provide, have kept the lights on in spite new power-demand records.
 

America’s march toward a clean energy future through competitive markets got a big boost today when the U.S. Senate unanimously confirmed the nominations of Phillip Moeller and Cheryl LaFleur to the Federal Energy Regulatory Commission (FERC).
 
FERC has responsibility as the consumer watchdog for our national energy infrastructure and future, and for the past two decades or more has pursued a market-based policy agenda in the public interest. Both Moeller and LaFleur are exceptional additions to the Commission, and both Commissioners possess a wealth of experience and a keen understanding of FERC’s long-standing policies supporting competition in electricity markets.
 

Regional electricity markets are well-structured and well-regulated, and by delivering competitive results are providing real economic and environmental benefits to consumers, the Independent Market Monitors for the majority of regional transmission operator/independent system operator (RTO/ISO) markets said at a COMPETE-sponsored Capitol Hill policy briefing. These markets are creating innovation, new investment and competitive electricity rates – all the while ensuring system reliability, the monitors said.

During last week’s regular open meeting, staff with the Federal Energy Regulatory Commission presented their 2009 State of the Markets Report, and the outcome for energy consumers was profound.  Prices for natural gas were down by 50 percent across the country, and as a result electricity rates declined proportionately in the organized competitive markets, where gas is a key generation fuel. Costs for both natural gas and electricity were at the lowest levels seen since at least 2002 – even earlier in some regions, FERC staff reported.

The case for competitive markets providing tangible economic and environmental benefits gets more compelling with each passing day. The latest data comes from the three organized markets that cover the Northeastern United States – PJM Interconnection, NYISO, and ISO-NE.

Wholesale energy prices fell 45.1 percent across the PJM Interconnection, which covers 13 states and Washington, D.C., PJM Independent Market Monitor says in the 2009 State of the Market Report. This is the lowest annual average price since 2002. In PJM’s most recent capacity auction, 7,050 megawatts (MW) of demand resource offers cleared the auction – equivalent to the capacity of six to eight base load power plants. While the news across PJM is positive, two states in particular stand out for the strength of their markets.