A white paper prepared for the Retail Energy Supply Association showing that average electric rates have declined in states with retail choice while rates have risen in monopoly states cites legislation seeking to introduce forms of customer choice in multiple states as showing a second wave of retail restructuring is coming.

The analysis, contained in a white paper entitled Restructuring Recharged – The Superior Performance of Competitive Electricity Markets 2008-2016, was prepared by Philip R. O’Connor, Ph.D., former chairman of the Illinois Commerce Commission,

"Given the demonstrably superior performance of retail choice markets, a coming second wave of retail electricity market restructuring has begun, as evidenced by ongoing debates in Nevada, California, Nebraska, Michigan and elsewhere," said O’Connor

O’Connor cited in particular the following proposed legislation:

• Minnesota HF 2248: Would allow large customers (taking service at a voltage equal to or greater than 69,000 volts) to take competitive supply

• Missouri HB 439: Would allow customers 1 MW or larger to contract to take renewable energy from a renewable energy facility

• Several bills in Nebraska (see details here). The study notes a bill similar to the Nebraska unbundling bill (precursor to choice) was also filed in Kansas

Additionally, the study noted Nevada's previously reported initial passage of a constitutional amendment to adopt electric choice, the failure of anti-competition parties in Michigan to completely eliminate choice, and continued discontent, particularly among large customers, with monopoly rates in Wisconsin and Indiana that has led various companies or trade groups to call for electric choice, with large customers also pushing for choice, due to the desire to meet renewable and sustainability goals, in Virginia, Arizona, and Oregon.

See the RESA white paper here

Tags:
Deregulation   Electric Choice   Minnesota   Missouri  

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