The benefits of retail electricity competition in low-cost states: Expectations for an evolving industry
It has become axiomatic that allowing consumers to choose their electric energy supplier from a competitive market will provide them benefits greater than those offered by the current regulated regime. There are concerns, however, that retail deregulation, the process through which consumers will gain the right to choose, will primarily benefit consumers in high-cost states at the expense of those in low-cost states. These concerns have prompted some to be reluctant to support retail electric competition. This paper considers short-run and long-run effects of an industry transition to competitive generation and retail access. It describes and analyzes a key issue, price convergence, described by some as rate averaging. The paper then discusses the impact of competitive electric markets on consumers in both high-cost and low-cost states.
- OSTI ID:
- 675530
- Journal Information:
- Electricity Journal, Journal Name: Electricity Journal Journal Issue: 7 Vol. 11; ISSN ELEJE4; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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