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Did Deregulation Work? Compete Coalition Says It Did

New York, NY – According to a recent report (Evolution of the Revolution: The Sustained Success of Retail Electricity Competition) published by the Compete Coalition, consumers are better off with competition (deregulated) vs. regulated (monopoly) utility markets, with respect to prices, investment, and reliability.  Currently, 13 states and Washington DC are fully deregulated (vs. partial deregulation in states like California and Michigan).

Between 1997 and 2014, adjusted for inflation, prices in competitive markets decreased 4.5% , while rates in non-competitive markets increased 8.4%.

FULL DISCLOSURE: Compete Coalition is a DC based lobbying firm comprised of more than 700 energy customers and suppliers, and transmission, trade, environmental, and economic groups supporting competitive electricity markets. Compete Coalition used data from the Energy Information Administration to compile the report.  Always consider the sources of information and research the motives behind such reports.

While restructuring appears to have been beneficial for consumers with respect to pricing and generation capacity, it’s interesting to note that it’s not a prerequisite for increased renewable generation.  Local and state level regulations, such as Renewable Portfolio Standards, are the real driver, along with distributed solar generation (mostly rooftop PV).

As noted by Katherine Tweed of Greentech Media, “broad overhauls of energy markets that will allow for markets at the distribution level, such as what is happening in New York, are only possible in the short term because New York is already deregulated, according to Audrey Zibelman, chair of the state’s Public Service Commission.”

Andy Anderson, LEED AP O+M, CMVP
Managing Director

EnergyWatch Inc.
1261 Broadway, Suite 510
New York, NY 10001
P 212.616.5198

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