Concentric Energy Advisors
The Concentric Connection • August, 2019
Concentric Energy Advisors
Retail Competition in Electricity: What Have We Learned in 20 Years?

On July 23, 2019, Concentric Energy Advisors, Inc. (Concentric) published a report entitled: Retail Competition in Electricity What Have We Learned in 20 Years?  This report, which provides a fact-based review of electric restructuring, was commissioned by the Arizona Energy Policy Group.  Lisa Quilici, Senior Vice President, of Concentric presented a summary of the report at a recent Arizona Corporation Commission workshop.

The report reviews the 14 states that have implemented full retail competition for all customers of investor-owned utilities (IOUs), the seven states that have implemented partial retail competition, and many other states that have considered but chose not to restructure their electricity markets.

Highlights of the report include:

  • Available evidence does not support the assertion that retail competition will lower rates for residential customers
  • A fully functioning wholesale electricity market is necessary to provide full retail competition
  • Billions of dollars in stranded costs have been recovered from customers in restructured states
  • Resource planning in restructured states is largely removed from the jurisdiction of state public utility commissions and states in general
  • Restructured markets have been challenged in their ability to provide compensation needed by critical resources to meet system reliability needs
  • Industry innovations have occurred broadly across the U.S. in both restructured and non-restructured states
  • Regulators and attorneys general in states with retail competition have taken a range of actions to evaluate and address negative impacts on residential customers

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