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EIA: Residential Retail Supplier Rates Higher Than Default Service In 13 States

November 05,2019



The U.S. Energy Information Administration published a review of the status of electric choice, noting that, excluding Texas, residential electric choice participation has been essentially flat since 2013

The EIA included a chart, based on Form 861 data, showing that residential electric prices from retail suppliers were higher than default service in each of the 12 states (and D.C.) that are generally considered to have full retail choice, with the comparison excluding Texas

According to the EIA, residential retail supplier rates were generally 1.5 cents and up to 2.7 cents per kWh higher than SOS

In contrast, nearly all retail choice states saw retail supplier rates for commercial and industrial customers that were below the default service rates

The EIA said: "Not all customers pay less for electricity through customer choice programs. In general, residential customers have paid more per kilowatthour through competitive suppliers than noncompetitive suppliers, but commercial and industrial customers have paid less. Suppliers are likely to offer more competitively priced contracts to their largest electricity customers. By comparison, residential and small commercial customers do not have the same leverage as large commercial and industrial energy users, although some may form purchasing groups. California has created community choice aggregators (CCAs) that allow local governments to purchase electricity and negotiate rates on behalf of their residents and small businesses. Other states allow local governments to choose a private aggregator."

See the EIA's comparison here

Tags:
Default Service   Deregulation   Electric choice  

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