A new report from the American Public Power Association confirms what is already well known -- customers living under a capacity market pay higher electric rates.

In a blog post concerning, its report "2014 Retail Electric Rates in Deregulated and Regulated States," APPA said that, "Retail rates in deregulated states within these RTOs with these capacity markets were 3.5 cents per kWh higher than rates in regulated states. In 2014, that gap grew to 4.1 cents — an increase of 0.6 cents per kWh."

"Such an increase in costs is hard to justify, especially when these markets do not provide greater resource adequacy or reliability than the markets in states with lower rates," APPA said.

Indeed, the RTOs are seeking to increase capacity costs by introducing new capacity products, such as capacity "performance" products (conceding that for nearly a decade, customers paying these higher rates have not been paying for resources to perform, despite repeated assertions to the contrary).

APPA's report compares average retail electric rates paid by residential, commercial, and industrial end users in deregulated and regulated states.

See APPA's full report here

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