Press & Testimonials

In addition to grid operations and planning, wholesale electricity prices are a key component to supporting a clean energy transition while preserving grid reliability. Competitive wholesale electricity markets are fundamental to providing consumers reliable, lowest-cost power and an essential mechanism for achieving public policy objectives. Competitive wholesale electricity markets have successfully facilitated efficiency gains on the grid by reducing fuel consumption and lowering consumer costs. Competitive wholesale electricity markets also shift the risk and cost consequences of resource investment and operational decisions from consumers to electricity suppliers. An added benefit of wholesale markets is that competition by resources rewards economic efficiency. Historically, this has resulted in more modern supply coming onto the grid and displacing older, less efficient supply. Properly designed competitive markets are an important element to realizing clean energy goals while minimizing costs and risks to ratepayers. To the extent that the CLCPA leads to the elimination of fossil fuel-based resources supplying the grid, markets must support investment in carbon-free resources that will offer comparable capabilities to meet electricity demand currently provided by the fossil fuel resources.

Todd Snitchler – Electric Power Supply Association (EPSA)

“The current moment in our nation’s energy story requires speed, innovation, efficiency, and a new way of thinking – all of which competitive power markets and independent power producers are uniquely designed to deliver. EPSA’s member companies have deep experience in developing and building new resources and technologies, doing so at their own risk without putting customers on the hook for the costs of new generation resources.”

Federal Energy Regulatory Commission (FERC) – Electric Competition

Competition has been the primary approach in recent years for wholesale generation service. Advances in technology, exhaustion of economies of scale in most electric generation, and new federal and state laws have changed the Commission's views of the right mix of these two approaches. The Commission's goal has always been to find the best possible mix of regulation and competition to protect consumers from the exercise of monopoly power.

Regulatory Overview of NYS Public Service Commission and New York’s Energy Sector

Competitive markets, where feasible, are the preferred means of promoting efficient energy services, and are well suited to deliver just and reasonable prices, while also providing customers with the benefit of greater choice, value and innovation. Regulatory involvement will be tailored to reflect the competitiveness of the market.

New England Power Generators Association (NEPGA)

With such great investment looming, it makes sense to foster competition in as many areas as possible. Well-regulated, competitive markets foster innovation, provide transparency, and generally drive down costs. While New England’s wholesale electricity markets may be volatile year-to-year, they have nonetheless driven down the costs related to generating electricity since their inception. That has then freed up resources to invest in other areas of the electric system, such as transmission and distribution.

The Brattle Group – How States, Cites, and Customers Can Harness Competitive Markets to Meet Ambitious Carbon Goals

The next years and decades will see massive investment in clean energy. Many states, cities, and corporations have pledged to meet most or all of their energy needs from non-emitting resources. This means not only replacing current emitting generation, but also building enough to electrify transportation, heating, and many industrial applications. Electrification is currently the most promising opportunity to cost-effectively decarbonize much of these sectors. The cost of this ambitious investment program could be very high. To minimize the cost, it will be essential to leverage competitive, market-based approaches.

Press & Testimonials

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