According to a white paper released by the Retail Energy Supply Association (RESA) last month, electricity consumers in competitive retail markets saved more than $300B in the last decade.
The paper, titled The Great Divergence in Competitive and Monopoly Electricity Price Trends, analyzes what the group refers to as an “eye-opening cost disparity” between the rates electricity customers pay in states with competitive energy markets and those with monopoly utilities.
According to RESA, the all-sector annual weighted average price in the U.S.’s 35 monopoly states was 18.7 percent higher in 2017 than in 2008. In comparison, the 14 U.S. jurisdictions that allow competition saw a 7 percent drop between those same years (Figure 2).
In competitive retail markets like Connecticut, New Jersey and New York, customers are served at market prices and utilities divest their generation assets or transfer them to competitive affiliates. These competitive retail markets, mostly concentrated in the northeast quadrant of the country, account for one third of the nation’s electricity generation (Figure 1).
To read the full RESA report, click here.