Electric choice has grown significantly the past few years, according to a new report released by the COMPETE Coalition entitled Retail Electric Choice: Proven, Growing, Sustainable. While electric consumption was no greater in 2011 than it was in 2008, there has been substantial growth in the number of customers that have chosen a new competitive electric provider as well as definitive signs showing that growth in electric choice is feasible.
The report released last week noted several key areas of growth in electric choice since 2008:
– Growth of more than 53 percent of customers served under retail electric choice, from nearly 8.7 million in 2008 to more than 13.3 million in 2011.
– A 40 percent increase in the total electric load served by competitive energy suppliers –or nearly 200 million MWh, from about 488 million MWh in 2008 to 685 million MWh in 2011.
– More than 18 percent of the nation’s electric load — one of every five kWh in the U.S. — is supplied by a competitive energy supplier, with consideration that retail electric choice is available in 18 jurisdictions that accounts for about 44 percent of the nation’s total electric load.
The report notes that more small businesses are choosing competitive electricity suppliers after learning how large businesses have benefited. Also, more residents have demonstrated an appetite for the benefits of customer choice as there has been an increase in the number that have selected a competitive electricity supplier since 2009 — including both individual contracts for electricity supply as well as participation in municipal aggregation programs.
Businesses and residents located in the 18 jurisdictions with retail electric choice have been able to benefit from the lower electricity supply prices, innovation in products and services, and flexibility that are possible in competitive electricity markets largely due to stable regulation and clear rules set by regulators and policymakers. When stable and clear regulations are developed, it provides a chance for more businesses and residents to choose their own supplier and as more do so, an opportunity for electric choice to continue to grow.
To view the full report, go to: http://www.competecoalition.com/files/COMPETE_Coalition_2012_Report.pdf
Constellation Energy, an Exelon company, is a member of the COMPETE Coalition.