MULTIPLE SURVEYS SHOW CONSUMERS SUPPORT COMPETITIVE ELECTRICITY MARKETS, CHOICE AND “GREEN” POWER

American consumers overwhelmingly prefer competitive markets as a means of providing electricity, and the top priority among consumers is environmentally friendly power rather than lower costs, according to polling results released August 3 at a National Press Club briefing sponsored by the COMPETE Coalition.

A national survey of registered voters was conducted in June by Peter D. Hart Research Associates for COMPETE, and illustrates that consumers look to competitive markets to provide innovation, said William Massey, a former Federal Energy Regulatory Commission commissioner and COMPETE spokesman.

“These results reinforce what COMPETE members have already recognized – that consumers are supportive of competitive electricity markets, and that they want access to renewable resources,” Massey said. ”We are on the verge of huge innovation in the electric power industry and the best way to capture that innovation is through competitive markets.”

“A large majority of Americans agree that competitive markets, consumer choice and innovative markets are the best way to meet future generation goals,” said Geoff Garin, president of Hart Research Associates, who presented the research results to reporters. “The wrong way to reach these goals is through a government-regulated monopoly, according to 75 percent of those polled,” he reported.

The National Press Club event also presented other recent regional and state-specific research sponsored by groups in Michigan and New England that independently came to similar conclusions: consumers favor competitive electricity markets, and believe that such markets do a better job of delivering on important customer priorities than traditional monopoly systems. The regional polling results were detailed by representatives of the New England Energy Alliance and the Customer Choice Coalition.

The consistency of results among the three surveys, although each was conducted independently and using different methodologies, was striking. Respondents’ top priority is renewable power, rather than low rates.

COMPETE spokesman Massey noted that competitive electricity markets provide “a better platform for distributing renewable power, such as wind. In fact, according to the American Wind Energy Association, nearly three quarters – 73 percent – of installed wind capacity is now located in these newly competitive markets, even though only 44 percent of wind energy potential derives from these areas. Experts predict that the amount of wind energy generated could double or triple in competitive markets.”

In New England, 47 percent of voters strongly favor being able to choose where to buy electricity, according to the New England Energy Alliance research. The study also found that the most important energy-related issue among polled voters is the high cost of gasoline. Electricity rates came in second, followed by shortages of electricity supply and global warming.

“Surprisingly, respondents in New England are willing to pay more for electricity to curb environmental impacts,” said Paul Afonso, Executive Director, the New England Energy Alliance. The polling results in Michigan mirrored those found nationally and in New England when it comes to favorability of market competition and consumer desire for some control over how their energy dollars are spent.

“The results of the Michigan poll confirm what many of us have already perceived, that consumers want competitive markets”, said Ronald M. Cerniglia, Direct Energy sponsor of the Michigan Marketing Resource Group survey. “When asked if customers should be allowed to choose to purchase electricity from competing suppliers or be limited to monopoly utilities, an overwhelming 77 percent of Michigan voters surveyed supported competition.”

Michigan consumers also see renewable generation as a first choice for new infrastructure but a majority of the respondents believe all technology should stay on the table.

The independent surveys were conducted earlier this year by three firms. Topline findings of the surveys are:

• National survey by Peter D. Hart Research Associates, Inc. – From May 31 to June 4, 2007, Hart conducted a telephone survey of 1,005 registered voters nationwide
  • Overall, 46% of voters are completely or mostly satisfied with the
    amount they pay for electricity for their home. About one in four (27%)
    has mixed feelings and a similar proportion (24%) is dissatisfied. In
    restructured states, 42% of voters are satisfied with what they pay and
    in traditional states and 53% are dissatisfied.
  • The cost of electric power is a lower priority for most voters than the
    desire to produce electricity without harming the environment. Half
    (49%) of voters say that minimizing environmental effects should be
    among the top priorities in the generation of electricity and 38% say
    that making the greatest possible use of renewable fuel sources should
    be among the top priorities. By comparison, just 27% say that producing
    the lowest possible cost for consumers should be among the top
    priorities.
  • After hearing a description of the movement toward greater competition
    and less government regulation of electricity pricing, 61% of voters
    say that it sounds like a step in the right direction. Just one in four
    (25%) voters says that it sounds like a step in the wrong direction.
  • Two-thirds (67%) of voters in both restructured and traditional states
    say that they support the movement toward greater competition and less
    government regulation of electricity pricing. Just 23% of voters say
    they oppose the movement.

• New England survey by Opinion Dynamics Corporation – Interviews were conducted between March 19 and March 25, 2007 of 600 registered voters proportionately distributed throughout New England.
  • Nearly two-thirds of consumers are concerned that the region’s supply of electricity will not be able to meet demand within 5 years and 80% agree that investment in new energy infrastructure is needed.
  • Clear and compelling support exists for the construction of large wind farms, LNG facilities and more natural gas-fired generating plants. Support for nuclear power and clean coal plants is positive but marginal. o More than 90% of consumers – a mandate majority – expressed the desire to choose the company that supplies their electricity based on cost, product offerings and environmental considerations.
  • Nearly three out of four consumers expressed concern about the effects of global warming and almost two-thirds are willing to pay more to reduce CO2 emissions.
• Michigan survey by Marketing Resource Group – MRG conducted a statewide random telephone survey of 600 voters the week of May 21, 2007.
  • Asked if customers should be allowed to choose to purchase electricity from competing suppliers or be limited to monopoly utilities, an overwhelming 77 percent of voters supported competition.
  • Voters also supported encouraging competition among electric suppliers to control energy costs, with 67 percent saying competition was a good way to control electric costs.
  • 74 percent of those polled said cost overruns in building new plants should be paid by utility investors, not put on the backs of customers, as has happened in the past.

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