Measuring The State of Competition In The Electricity Sector

Measuring The State of Competition In The Electricity Sector

The University of Texas recently published "The State of Electric Competition in the United States of America," evaluating the competitiveness of different states’ electricity sectors. The national "Electric Competition Scorecard" ranks each state based on how competitive their electricity markets are and provides recommendations for removing barriers to entry.

Each state was scored based on 10 different factors related to a wide range of issues to determine competitiveness, including the existence of wholesale and retail electricity markets, requirements for RFPs in vertically integrated states, data access policies for customers and third parties, compensation policies for distributed generation, and the percentage of power plants that are privately owned.

Another Study Shows the Value of Competitive Markets

While we previously reviewed this report, we thought it worth revisiting while Congress argues about how to subsidize what is already happening in areas with competitive markets. Keep in mind that if the current Clean Energy Payment Plan (CEPP) goes down, which is likely, that a better alternative already exists. Namely, removing obsolete regulatory barriers to market entry for independent generators and service companies. Consumers are already demanding clean energy where the market allows them to choose and there are plenty of innovative private-sector companies ready to meet that demand.

Study Finds Competitive Markets Good for the Environment, Consumers

States with competitive electricity markets saw cheaper energy prices, more energy infrastructure investment to improve efficiency and reliability, and greater emission reductions compared to monopoly states, according to a study released this week by the Pacific Research Institute.

“Residents and businesses lose out when states cling to outdated government-mandated electricity monopolies,” said Dr. Wayne Winegarden, a senior fellow at the California-based free-market think tank. “Customers in monopoly states pay higher energy prices, see less effective infrastructure investment, fewer emission reductions, and endure less reliable power systems.”

The report, aptly entitled “Affordable and Reliable,” found that competition reduces prices for consumers.

Hurricane Ida Exposes Entergy's Unreliable Grid While Residents Pay Price

Hurricane Ida Exposes Entergy's Unreliable Grid While Residents Pay Price

When Hurricane Ida struck the state of Louisiana last month, nine people died because of "excessive heat during an extended power outage.” Residents like Wilma Banks, a former casino employee with cognitive heart disease and asthma, were dependent on their utility company to support them by powering their medical devices and HVAC systems during this time of need. But as days went on after the eye of the storm ripped through homes and livelihoods, power wasn’t restored.

Sadly, an investigation found that prior to the storm, Ms. Banks’ utility company, Entergy, “aggressively resisted efforts by regulators, residents and advocates to improve its infrastructure.”

Perhaps most sobering is that even in a state like Louisiana, where some of the nation’s most sever and unforgiving natural disasters hit, Entergy’s building stood tall over the city when one million residents remained without power for days on end.

The Future of the Grid: Microgrids

The Future of the Grid: Microgrids

The lingering power outage in New Orleans and surrounding areas served by the vertically integrated power company Entergy caused by Hurricane Ida is just the latest example of the lack of resilience in much of our nation’s power systems. One way to mitigate power disruptions is to develop more microgrids – isolated generation and delivery systems that can operate independently in a limited geographic area from the traditional regional grid.

Community solar

Community solar

Community solar is a less well-known but increasingly important option for deploying solar energy, particularly in densely populated urban areas where rooftop space is often shared by multiple tenants.

Community solar is consumer-owned power generation with a twist.

Instead of being owned by a utility, corporation or government, the ownership of these systems is shared by subscribers. Each subscriber gets credit for the generation produced equal to their percentage of ownership in the project. Shares can range from a single solar panel to a majority of the installation, but usually the largest share is less than 50 percent of the total project.

A Federal Clean Energy Standard is Part of the Answer

A Federal Clean Energy Standard is Part of the Answer

The proposed Clean Energy Standard is getting a lot of attention right now with conflicting reports about whether or not Democrats will attempt to include it in the budget reconciliation side of their infrastructure push.

The proposal’s specifics have not been revealed, but it would incentivize electric utilities to transition toward cleaner power sources, primarily wind and solar, rewarding those who meet or exceed the thresholds and penalizing those who fall short. Reportedly, utilities’ current power mix would be accounted for so that states like West Virginia and Wyoming that still generate a substantial portion of their power from coal wouldn’t be penalized compared to utilities that have already retired coal generation, like California.

Energy Choice Coalition Joins Call For Dedicated Program at DOE to Support State Efforts to Expand Competitive Markets

Energy Choice Coalition Joins Call For Dedicated Program at DOE to Support State Efforts to Expand Competitive Markets

The Energy Choice Coalition joined several peer organizations in urging Congress to create a dedicated program at the U.S. Department of Energy’s Office of Electricity (DOE-OE) to provide technical and financial assistance to states interested in expanding organized wholesale electricity markets.

Coalition Letter Urges Congress, GAO to Study Benefits of Increasing Competition in Electricity Markets

Coalition Letter Urges Congress, GAO to Study Benefits of Increasing Competition in Electricity Markets

The Energy Choice Coalition today joins the Electricity Consumers Resource Council (ELCON), Public Citizen and other consumer advocates and pro-market groups in calling on the U.S. Senate Committee on Energy and Natural Resources and the U.S. House Committee on Energy and Commerce to direct the U.S. Government Accountability Office (GAO) to study the cost and reliability of electricity in the United States and the impacts on consumers of Regional Transmission Organizations (RTOs).

Without Monopolies, Virginia Politicians Have No Where To Turn For Their Pricy Political Goals

Without Monopolies, Virginia Politicians Have No Where To Turn For Their Pricy Political Goals

The continuance of utilities and politicians blocking competition from yielding a cleaner, more cost-effective electrical grid is on full display. And the scary truth is: the incentive for politicians to hang onto monopolies is too great. Without monopolies, their vehicle (regulated power rates) to get to their destination (expensive political goals) has no gas, wheels or engine.

More Attempts to Undermine the Success of Solar Power by Large Utilities, Power Groups

More Attempts to Undermine the Success of Solar Power by Large Utilities, Power Groups

Solar power’s influence and potential continues to be attacked by a web of unapologetic utilities, think tanks and associations determined to sink the implementation of rooftop solar power. In order to save their antiquated business model, powerful groups and utilities, from Consumer Energy Alliance to Edison Electric Institute, are lining up to push against the wishes of consumers for cleaner energy, despite the fact that solar is low cost, efficient and abundant.

The Benefits for Restructured Electricity Markets

The Benefits for Restructured Electricity Markets

The rapid evolution of the electricity sector in the United States can offer numerous benefits to consumers while also addressing society’s environmental concerns. The rise of independent energy suppliers and the advancement of information technology are transforming the way we generate and manage our electricity use, allowing consumers to access more affordable, diverse, efficient, and cleaner sources of energy.

More Bad News for Ratepayers Trapped in Monopoly Utilities

More Bad News for Ratepayers Trapped in Monopoly Utilities

This week in Georgia, Ohio and Illinois, major utility companies imposed billions of dollars of costs and subsidies on ratepayers while being served with federal subpoenas and announcing major costly delays in projects. These cases aren’t one-offs. In fact, they continue to demonstrate the need for a competitive energy market that drives down the consumer and spurs innovation in the marketplace.

Senate Advances Clean Energy Tax Package in Recognition of Importance of Storage and Investment Incentives

Senate Advances Clean Energy Tax Package in Recognition of Importance of Storage and Investment Incentives

The Senate Finance Committee this week highlighted the important role of energy storage in achieving the transition to a zero-carbon power sector with the advancement of a $259.5 billion clean energy package that includes tax incentives for stand-alone storage and combined solar and storage projects.

The Clean Energy for America Act by Oregon Democrat Sen. Ron Wyden seeks to streamline the tax code to make clean energy tax credits more accessible and effective. The Wyden package differs from President Biden’s American Jobs Plan, which also included an investment tax credit for storage, in that it would replace the current patchwork of 40 clean energy credits with three categories of technology neutral incentives for zero-emission generation.

Forcing Solar Installers to Unionize will Increase the Cost of Clean Power for Consumers

Forcing Solar Installers to Unionize will Increase the Cost of Clean Power for Consumers

With the White House focused on a massive infrastructure package, Americans are likely to see a rapid uptick in the development of clean energy. Ideally, that would provide consumers even more opportunities to choose their energy sources.

President Joe Biden’s infrastructure plan would increase the availability of renewables, outpacing the current rate of more than 20 percent of all U.S. electricity generated in 2020, and create job opportunities.

The Grand Technological Shift of the Power Sector & How Free Electricity Markets Are Best Poised to Capture Them

The Grand Technological Shift of the Power Sector & How Free Electricity Markets Are Best Poised to Capture Them

Technological innovation and the rapid pace of change offered via digital technologies and the Internet of Things (IoT) is prompting wide-scale shifts across the economy. These transformative technologies weren’t created by or exclusively for the utility industry, but their wide availability and rapidly falling costs have allowed them to be applied in the production, delivery and management of electricity. For utility customers, that means a movement toward dispatchable energy resources (DERs), demand-side management, smart grids, and other innovative products and services.

The Utility Playbook of Bad Behavior

The Utility Playbook of Bad Behavior

The Conservative Energy Network (CEN) have launched UtilityPlaybook.com to track the ways monopoly utilities use their influence and power to block competition and maintain outdated fossil fuel and nuclear power plants. The new website also includes some of the great work being done at the nonprofit Energy and Policy Institute to track corruption and dirty tricks by incumbent utilities – moves that are slowing the transition to a clean energy future while charging ratepayers full freight for dirty energy.

Free Economies are Clean Economies

Free Economies are Clean Economies

Advocating for economic freedom and free enterprise to improve human and environmental conditions, Nick Loris’ policy paper explains how innovation and competition will solve climate change’s most difficult challenges. Rather than harmful regulations and excessive spending proposals like the Green New Deal, Loris outlines how capitalism is not the problem, but the solution.

The paper, “Free Economies are Clean Economies,” investigates and analyzes the correlation between economic freedom, limited government, open markets, private property rights, and environmental performance around the world.