wind power

The New York Independent System Operator (NYISO) credited competitive markets with reducing air pollution by attracting investment in power plant efficiency and clean energy sources, according to a report in Restructuring Today and Platts Electric Power Daily.
 
Stephen Whitely, NYISO’s CEO, stated that competition has combined with carbon control programs like the Regional Greenhouse Gas Initiative (RGGI) to sharply lower emissions of sulfur dioxide, nitrogen oxides and carbon dioxide.

“Competition in wholesale electricity markets has stimulated investments in cleaner generation, increased the use of renewable resources – such as wind power – and encouraged operating changes to improve the overall efficiency of power plants,” said Whitely. 

Clean energy resources, including demand response and energy efficiency, made up nearly three-fourths of new capacity additions in PJM Interconnection’s recently completed Reliability Pricing Model (RPM) auction. This new announcement continues the phenomenal growth of clean energy and demand response technology in the nation’s largest competitive wholesale electric market.
 

Clean energy generation has grown at a phenomenal pace in the PJM Interconnection market.  Data from PJM’s Environmental Information Services’ (EIS) tracking system shows that over the past five years, wind generation has increased almost 1,300 percent, from 500,000 megawatt-hours (MWh) in 2005 to 6,500,000 MWh in 2009. Solar power, which accounted for only 100 MWh in 2005, produced more than 81,000 MWh – a 3,000 percent increase.

This infusion of clean energy has reduced PJM’s carbon dioxide emissions per MWh of generation by 12 percent since 2005, created green jobs, and provided customers with low-carbon energy alternatives, according to the EIS data.

Competitive markets in Maryland and Connecticut are yielding innovation, savings and environmental benefits, as demonstrated by media coverage compiled by Restructuring Today (subscription required).

In Maryland, the Baltimore Examiner spotlighted COMPETE member Clean Currents, a company providing over 5,000 homes and businesses with wind or solar power. The article detailed how customers are able to choose their energy supplier because of the competitive nature of Maryland’s electricity market.  By shopping for their power source and opting for programs offered by Clean Currents and other similar companies, customers can reduce their electric bills while becoming more environmentally conscious. With benefits like these, it’s no surprise recent polling showed Maryland consumers prefer competitive markets.

Less than three months after the highly publicized removal of artificial rate caps in PPL Electric Utilities’ territory, consumers enjoy multiple power supplier options and clean energy is thriving in competitive electricity markets across the state.

Consumers have saved money under the competitive model when compared to the traditional monopoly model,” James Cawley, Pennsylvania Public Utility Commission (PAPUC) Chairman, testified at a recent State Senate hearing. “It’s been a great success.” More than 550,000 customers have switched power suppliers statewide, reports the PAPUC’s PAPowerSwitch Web site, which provides consumers with advice on how to find the right competitive power supplier.

The amount of customers who have switched within the PPL Electric Utilities’ service territory is “astounding,” said Chairman Cawley. 320,000 residential customers – and 380,000 total customers – are purchasing electricity from competing providers. Fourty-six percent of total electricity demand is being met by competitive suppliers. There are 28 competing suppliers serving customers in PPL Electric Utilities’ service area, including nine suppliers for residential customers.

Beware of organized competitive electricity market critics who claim to speak for all consumers. They certainly do not speak for the growing contingent of COMPETE customer members who are helping communicate the economic and environmental benefits, and the technological innovation, that competition in electricity is delivering.

During a recent conference sponsored by Citizens for Pennsylvania’s Future (PennFuture), two representatives of COMPETE’s roster of customer members, manufacturer Leggett & Platt and retailer Wal-Mart, discussed how electricity competition saves money for consumers, stimulates renewable energy, and encourages innovation.

The recent American Wind Energy Association (AWEA) Year End 2009 Market Report showed that the U.S. wind industry set new records for installed wind capacity by adding nearly 10,000 megawatts of new capacity in 2009. Again, as in past years, competitive markets are leading the way in developing this clean and renewable energy resource.

The report underscores wind’s contribution to our national energy portfolio, and the role competitive markets have played in spurring new capacity. America now enjoys 35,000 megawatts of installed wind power generation, nearly 2 percent of our total national energy capacity. Four of the top 10 (and two of the top three) highest-volume states in installed capacity are competitive markets. In addition, the total combined installed capacity of the 17 competitive markets states is 16,500 megawatts - nearly half of the nation’s total installed capacity.

Hyperbole and half-truths have clouded the picture of Pennsylvania’s expiring rate caps and ignore the fact that retail electric competition has saved that state’s consumers billions, according to a recent op-ed by Jan Jarrett of PennFuture. Scary stories, she says, are becoming urban legends.

Responding to critics who argue consumers should return to monopoly control of electric markets, Jarrett points out that restructured power markets have paid dividends to much of the state. Beyond the fact that state electric rates are now 5 percent lower than the national average (compared to 15 percent above the national average before competition), renewable wind power generation and energy conservation innovations have boomed in Pennsylvania’s organized market –a direct benefit of competition.

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.