Video presentations of the "Deja Vu" study

In December 2008, the COMPETE Coalition unveiled a study authored by the NorthBridge Group,  that not only highlights the positive role competitive electricity markets play in helping meet our nation’s energy challenges but also urges policymakers to avoid the past mistakes of the monopoly market model.

Below are a few clips that highlight some of the key points of the discussion.

COMING SOON
“Four Regulatory Flaws”

Frank Huntowski of the NorthBridge Group discusses four inherent flaws in the regulatory model’s ability to respond to “shocks” to the system, such as rising fuel prices. By revisiting the energy crises of the 1970s, and the regulated response to them, Huntowski outlines lessons learned.

“Effective Capital Allocation and Competition”
Michael Schnitzer of the NorthBridge Group argues that proper and effective allocation of capital in the electricity sector is critical to achieving efficiency. He indicates that a competitive market structure is better equipped than a monopoly structure to allocate capital effectively and suggests that existing competitive markets are continuing to confirm this assertion.

“Avoiding the Regulatory Mistakes of the Past”
Bill Massey of the COMPETE Coalition asserts that now is more critical than ever to avoid repeating the regulatory mistakes of the past, as the nation is focused on upgrading and expanding electricity infrastructure, reducing carbon emissions and remaining a competitive force in the global economy. He presses policymakers to revisit the monopoly structure’s past mistakes in responding to energy challenges and urges them to consider a new path forward.

“Misperceptions about Competition”
Frank Huntowski and Michael Schnitzer, of the NorthBridge Group, and Bill Massey, of the COMPETE Coalition, discuss misperceptions about competitive electricity markets and indicate that increasing electricity rates are a result of many compounding factors and not competition. The panelists suggest that critics fail to account for the range of benefits competition produces, including increased investment and efficiency, focusing instead on small and misleading snapshots of data that don’t provide a realistic depiction of the market.  

“Competitive Markets and Cap and Trade”
Michael Schnitzer of the NorthBridge Group discusses how a cap and trade system would operate best against the backdrop of a competitive electricity market structure because of the complementary competitive nature of both models. Schnitzer illustrates that a monopoly regulatory structure would not promote the innovation and expediency needed under an economy wide cap and trade system and further explains, on the flipside, the competitive structure’s ability to integrate and perform effectively under such a system.