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home | Today's headlines | Compete Coalition maps 16 years of r . . .

Compete Coalition maps 16 years of restructuring, lower rates
April 23, 2014
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The Compete Coalition released new data yesterday arguing that customers served by ISO/RTOs and those whose states have deregulated retail saw their rates decline over the last 16 years while those who have not saw them rise. The group that includes industry and customers used data from EIA and the Bureau of Labor Statistics to compile the updated analyses on power price data from 1997 through last year.

Consumers in states that restructured their retail power regulations to promote competition saw their rates decline by 3.2% over those 16 years while those living under monopoly regulation saw them rise 8.2%. States in ISO/RTO regions saw their rates drop by 0.9% while those in states outside of markets saw their rates go up 6.7%, said Compete.

"Compete has conducted this exercise annually for several years now, and the data are irrefutable. Consumers in states with competition, whether at wholesale or retail or both, have seen their rates either decline or increase at a slower rate of growth compared with consumers in states without competition," Compete Counsel William Massey said in prepared remarks. "These data show that competition works in the best interests of consumers and we expect this observable trend to continue into the foreseeable future."

The benefits also continue to hold true when broken down into customer class. Residential customers in restructured states saw their rates drop 5.8%, while rates in monopoly states rose 4.3%.

Commercial customers in restructured states saw their rates drop 12.1%, while their counterparts in monopoly states saw rates go up 2.1%. Industrial customers in competitive states saw rates drop 2.5%, while they rose 11.4% in monopoly states.

Residential customers in ISO/RTO footprints saw their rates drop 3.1% while those on the outside saw their rates go up 3.2%. In RTOs, commercial customers saw rates drop 10.4% and outside commercial customers saw a 1.8% boost, while the numbers for industrials were a 1.7% boost in RTOs and an 8.7% boost outside RTOs.

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