New York Public Service Commission Report Cites Significant Consumer Savings From Electricity Competition

COMPETE, the national coalition promoting the public interest benefits of competitive electricity markets, praised last week’s release of a New York Public Service Commission report detailing significant consumer savings stemming from electricity competition in the state.

The report, “Staff Report on the State of Competitive Energy Markets: Progress to Date and Future Opportunities” found that the total inflation-adjusted electric price for a typical residential retail customer in New York, including supply and delivery charges, has dropped by an average of approximately 16% between 1996 and 2004. The report also found that most commercial and industrial customers have seen decreases in their real energy bills as well.

“The New York report stands as the latest in what has been a steady stream of good news coming out of our nation’s competitive electricity markets,” said former U.S. Senator Don Nickles, COMPETE’s chairman. “Last month it was the Texas Commission, this month it’s New York; the states may be different, but the findings are the same - competition is saving electricity customers billions of dollars,” Senator Nickles added.

On February 2, 2006, the Public Utility Commission of Texas issued a report to the Texas state legislature noting, among other findings, that a residential customer in the Houston area who switched to a Competitive Retail Electric Provider in January 2002 and switched annually thereafter to the lowest-cost provider would have saved $1,450, as compared to the estimated regulated rate, over the four-year period retail competition has been in effect. “The New York report comes as no surprise to us,” said Angela Beehler, Director of Energy Regulation for Wal-Mart Stores, Inc., a COMPETE member. “Through well-designed and carefully thought out market rules, the New York PSC has ensured an environment with thriving competition. This has provided Wal-Mart with several bidders – along with an array of different pricing structures - from which to choose in sourcing our energy supply needs in the state. This helps us to better manage our utility costs so that we can pass savings through to our customers,” Ms. Beehler added.

The complete NY PSC report can be found at www.competecoalition.com