America's Energy Choice

ABACCUS Report: Competitive Electricity Markets Encourage Innovation


ABACCUS Report: Competitive Electricity Markets Encourage Innovation

Posted by David Fein on December 07, 2011

States with competitive electricity markets have seen a surge in consumer-driven product and service innovation, according to the Annual Baseline Assessment of Choice in Canada and the United States (ABACCUS) released last week. This is primarily because electricity suppliers that are competing for business in well-structured competitive electricity markets are able to introduce new products and services previously unavailable in traditional monopoly markets.

So where would a consumer be more likely to reap the benefits of innovative energy solutions, lower prices, and savings?
• The ABACCUS report identifies Texas as the competitive retail market leader for the fifth consecutive year.
• New York is lauded for policies that have created an excellent competitive market.
• Illinois and Pennsylvania are highlighted as having made the most substantial progress with their competitive markets since last year’s ABACCUS report.
• Connecticut, Maryland, and the Canadian province of Alberta are acknowledged for policies that foster choice for residential electricity customers.

Altogether more than 12 million business and residential consumers in competitive electric markets have shopped for electricity across our country, but more work needs to be done. The trend is moving toward continued expansion of competitive markets for all consumers. California and Michigan are currently considering legislative changes that would result with the reopening of their markets and Arizona has begun revisiting the topic, too.

A signature characteristic of the ABACCUS analysis and report is the scope of issues explored. Recommendations are also provided based on public policy choices that have supported the application of competitive markets.

Constellation Energy
was a sponsor of the report, which was led by an advisory board including regulatory staff of various commissions and other subject matter experts. To view the full report, go to

David Fein

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