John Norris

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 benefits of competition were a key topic at a recent Federal Energy Regulatory Commission (FERC) oversight hearing by the House Energy and Commerce Committee’s Energy and Environment Subcommittee.

“Organized wholesale electric markets create opportunities and encourage innovations that benefit consumers,” FERC Chairman Jon Wellinghoff said.

Wellinghoff noted that one of the largest benefits of these markets is the ability to level the playing field between traditional generation resources and a wide range of resources including renewable energy, demand response, energy efficiency and distributed generation. “Removing barriers that keep renewable energy resources from competing in wholesale markets must be part of our strategy to move toward energy independence.”

Following the Senate’s confirmation last week of former Iowa utility regulator John Norris to a seat on the Federal Energy Regulatory Commission (FERC), we were encouraged to hear him say he would “work toward ensuring open and fair energy markets in which consumers, retailers and wholesalers can have confidence.” His prepared statement further noted challenges ahead including “minimizing the impact changes will have on consumers, ensuring adequate investment in upgrading and building new infrastructure and meeting our nation’s goals for reducing CO2 emissions.”