With many years of data available for analysis, there is ample evidence that competitive electricity markets deliver reliability and economic benefits for both wholesale and retail consumers. That evidence is detailed in a number of studies, reports and white papers, many written by independent entities. These reports and studies are described and linked below (listed in chronological order).
The ISO/RTO Council (IRC) is an industry organization consisting of representatives from the 10 Independent System Operators (ISOs) and Regional Transmission Organizations (RTOs) in North America. Collectively these organizations serve two-thirds of electricity consumers in the United States and more than 50 percent of Canada's population.
This report reveals that organized competitive markets are shattering barriers for renewable and demand response resources; creating new efficiencies in plant operations; significantly improving grid reliability; sending clear, timely, and transparent pricing signals; and expanding regional planning.
IRC
(2007/2005)
IRC studies and papers regarding the benefits of competitive markets and IRC services are available on the council’s website:
The Value of Independent Regional Grid Operators - November 2005
This white paper explains the core functions and key benefits of ISOs and RTOs. It highlights the financial benefits of increased reliability, more efficient use of the grid, reduced reserve requirements, and coordinated planning for new generation and transmission resources.
This study by the Center for the Advancement of Energy Markets concludes that market-based approaches to improving reliability, including market-based demand response initiatives and distributed energy will more closely link consumer preferences and consumption levels with costs. CAEM is an independent, non-profit, public policy think-tank that supports a transition from energy monopolies to an open-access, customer choice world.
IEEE (12/2005)
Wind Energy Delivery Issues
An article published in the November/December 2005 issue of Power and Energy, a magazine published by the Institute of Electrical and Electronic Engineers. Power industry experts examined the role of competitive markets in fostering renewable energy and found restructured, market-based power systems are very friendly to renewable energy resources and continue to make strides. Back issues of Power and Energy are available on their website.
A Cambridge Energy Research Associates’ study finds that the conventional wisdom about power price increases is at odds with the real prices. They calculate $34 billion in savings has been achieved. This is over the past seven years and compares the actual amount paid to an amount calculated that would have been paid under traditional regulation.
Midwest ISO (10/2005)
An independent consultant prepared a study assessing the benefits of the Midwest ISO to consumers. Issued in October of 2005, it corroborates earlier studies that found significant cost reductions delivered to both wholesale clients, and end-use electrical customers. The ICF Consulting study is on the MISO website.
