NATIONAL CENTER FOR POLICY ANALYSIS
Turning on the Lights 2011: The Consumer
Benefits of Electric Power Competition
by Carl Johnston and Lynne Kiesling April 2011
U.S. Independent System Operators (ISOs)/RTOs
MISO
NE ISO
Washington
North Dakota
Maine
Montana
Oregon
NY ISO
Minnesota
Idaho
Vermont
New
Hampshire
Massachusetts
Wisconsin
South Dakota
New York
Wyoming
Rhode Island
Connecticut
Michigan
Pennsylvania
Iowa
Nebraska
Nevada
Utah
Colorado
California
New Jersey
SPP
Ohio
Illinois
Indiana
Delaware
West
Virginia
Kansas
Missouri
United States
PJM
Maryland
Virginia
Kentucky
North Carolina
Tennessee
Arizona
Oklahoma
New Mexico
South Carolina
Arkansas
Cal-ISO
Mississippi
Alabama
Georgia
Louisiana
Texas
Alaska
Florida
0
0
0
500 Miles
500 Km
0
100 Miles
0 100 Km
500 Miles
0
Hawaii
ERCOT
500 KM
RestructuringStates
StatesPost-California
Pre-California Crisis
Restructuring
Crisis
Washington
North Dakota
Maine
Montana
Oregon
Minnesota
Idaho
Vermont
New
Hampshire
Massachusetts
Wisconsin
South Dakota
New York
Wyoming
Rhode Island
Connecticut
Michigan
Pennsylvania
Iowa
Nebraska
New Jersey
Nevada
Ohio
Illinois
Utah
Indiana
West
Virginia
Colorado
California
Delaware
Kansas
Missouri
United States
Maryland
Virginia
Kentucky
North Carolina
Tennessee
Arizona
Oklahoma
New Mexico
South Carolina
Arkansas
Mississippi
Alabama
Georgia
Louisiana
Texas
Alaska
Florida
Hawaii
0
0
0
500 Miles
500 Km
0
100 Miles
0 100 Km
500 Miles
0
500 KM
Texas Fast Facts
Competitive Sourcing:
43% of Residential
>70% of Industrial
In Houston, choice
between 255 plans a
five-fold increase
from a year ago.
http://www.powertochoose.org/
_content/_compare/showoffers.aspx
255 Offers
Zero to 13.7c KWh
•
•
•
•
•
•
Promotions
Month-to-Month
No Credit Req’d
Daily Variable Rate
GoGreen!
6-12-18-Month
Fixed
12.000
Texas Electricity Retail Price per KWH 1990-2011 ($=2008)
10.000
8.000
Real Prices ($2008)
6.000
Natural Gas
4.000
2.000
0.000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
New Jersey Real Electricity Prices 1990-2011
16.000
14.000
12.000
Axis Title
10.000
"Real Prices($2008)"
8.000
Natural Gas ($2008)
6.000
4.000
2.000
0.000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
16
14
Prices In (Non) Congested States 19902011
12
10
8
Difference
Restructured Non-Congested
Restructured Congested
6
4
2
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-2
Revolution in Generation
• Nukes in restructured states are 40% more
efficient
• Renewable power output growing 20 times
faster in restructured states
• (fair access to grid; wholesale response to
intermittent output)
Revolution in Distribution
• Smart Meters: 28 million households with
smart meters permitting two-way
communication
• Digitization of the Grid paves the way to
connections to the Internet
Revolution in Consumption
• Buyer or seller of production
• Optimization of electricity use throughout the
day using “operating system” for your home.
• Self sufficient micro nets and community
networks
Revolution in New Businesses
•
•
•
•
Demand Response Aggregators
Networked Appliances
PHEVs
New Software and Device Development
Opportunities (Applications running on home
operating systems)
Policy Recommendations
• Split vertically integrated utilities into service
companies and power generators, allow free
pricing nationwide
• Deregulate the utility market to provide choices
for length of contract, fuel options, reliability—let
consumers lead the market
• Give FERC Authority to Site Long-Distance
Transmission Lines (or something similar)
• Divest Federal Power Generation and Transmission Assets
• Build Smart Grid
• Junk Preferences for Generation Technologies
16.000
California Real Electricity rates 1990-2011 ($=2008)
14.000
12.000
10.000
Real Prices ($2008)
8.000
Natural Gas ($2008)
6.000
4.000
2.000
0.000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009