RESA: Customers In Monopoly States See Prices Rise 40%; Electric Rates In Choice States Rose Only 10%
The Retail Energy Supply Association (RESA) released its 2022 data report based on the latest figures collected by the U.S. Energy Information Administration (EIA).
“[S]ince 2008, the average power price for all customers in the competitive states/jurisdictions rose by 10.6%, while the rates for this same group in the monopoly states increased significantly more, by 40.3%,” RESA said.
“The most recent EIA data also shows that customers in the monopoly states could have saved more than $628 billion, if they had experienced the same price trajectory as the competitive states/jurisdictions since 2008,” RESA said.
“By major customer class, these unrealized savings in the monopoly states would have cumulatively been $212.9 billion for residential customers, $260.4 billion for commercial customers and $155.0 billion for industrial customers. Meanwhile, the 14 competitive states/jurisdictions saved an estimated $430 billion during this time period compared to the monopoly states’ price trajectory. These data points highlight the impact of cost savings that competitive power markets have realized,” RESA said.
RESA said that, in 2022, over 13.2 million residential customers received their power from competitive retail suppliers. “This represents 45.0% of the residential consumer’s load who reside in energy choice states/jurisdictions and who are eligible to choose their retail power supplier,” RESA said.
RESA said that the data also shows that 83.7% of the power provided to Commercial and Industrial customers was provided by retail suppliers within the states/jurisdictions enabling retail power competition.
“The stats are telling us a pretty clear story. It’s evident that when consumers, whether homeowners or businesses, are provided with choices, they make informed decisions recognizing the benefits of competitive markets,” said Tracy McCormick, executive director of RESA.
“This information robustly highlights the importance of empowering consumers with the freedom to choose their power providers,” said RESA’s president, Gretchen Fuhr. “It is not solely about the prospects for cost savings; it’s fundamentally about fostering innovation within the industry and encouraging the adoption of environmentally sustainable solutions.”