In June, a poll showed that a majority of Americans believe in competitive markets. Yet, we saw over and over how monopolies are intentionally getting in the way of that. July 3, 2021 Happy Fourth of July June was an active month — starting with a new poll proving that a majority of Americans believe competitive markets are more effective at lowering consumer energy co
June was an active month — starting with a new poll proving that a majority of Americans believe competitive markets are more effective at lowering consumer energy costs than energy monopolies. Yet despite that, we saw over and over how monopolies are preventing the majority from achieving their goals by corrupting politicians, paying for expensive political legislation, and undermining alternative energy initiatives. Regardless, we continue to fight for sensible, free-market solutions in the months and years ahead. This Fourth of July, we wish you a safe and enjoyable weekend with friends and family. Visit a ballpark, enjoy a BBQ or spend time by the poll! Happy Independence Day! |
Robert Dillon, Executive Director |
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Wed, Jun 23
The rapid evolution of the electricity sector in the United States can offer numerous benefits to consumers while also addressing society’s environmental concerns. The rise of independent energy suppliers and the advancement of information technology are transforming the way we generate and manage our electricity use, allowing consumers to access more affordable, diverse, efficient, and cleaner sources of energy.
More than a dozen states have restructured their electricity markets to some degree in order to give consumers, large and small, a greater say in the type of energy they use every day to power their homes and offices. Proper policy design is crucial for ensuring that end users have the freedom to choose their service providers and are adequately protected from opportunistic business practices.
Texas has gone the furthest in creating a dynamic retail marketplace by quarantining its legacy monopoly utilities to the operation of transmission infrastructure only. Customers can choose from hundreds of service providers based on their individual preferences for the lowest cost, efficiency, or renewable generation. In contrast, partially restructured states, which allow the old monopoly utility to continue to sell electricity directly to consumers, have often seen competition stifled.
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Fri, Jul 02
Virginian politics surrounding electric utilities is representative of a narrative impacting consumers nationwide. In 2015, the State Corporation Commission, Virginia’s state regulator, approved a rate increase that was intended to respond to an Obama-era policy that would have increased the cost of producing electricity. When the Supreme Court blocked the policy from realizing, the Commission argued against rescinding the rates and instead double-downed, forcing one group of consumers to subsidize another. To make matters worse, Virginia politicians decided to use the funds to advance and subsidize projects that were self-serving and boosted their interests and profile.
What is happening in Virginia is not unique to the Commonwealth. The continuance of utilities and politicians blocking competition from yielding a cleaner, more cost-effective electrical grid is on full display. Previously, the vertical integration of electricity – generation, transmission and distribution – was more understandable to distribute electricity from numbered generating plants to many consumers. But this old model is not reflective of the capabilities and potential of the 21st Century. Utilities and politicians refuse to publicly acknowledge low-cost, available and reliable alternatives.
But one must ask why that is. And the scary truth is: the incentive for politicians to hang onto monopolies is too great. Without monopolies, their vehicle (regulated power rates) to get to their destination (expensive political goals) has no gas, wheels or engine.
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Thu, Jul 01
Solar power’s influence and potential continues to be attacked by a web of unapologetic utilities, think tanks and associations determined to sink the implementation of rooftop solar power. In order to save their antiquated business model, powerful groups and utilities, from Consumer Energy Alliance to Edison Electric Institute, are lining up to push against the wishes of consumers for cleaner energy, despite the fact that solar is low cost, efficient and abundant.
Solar power is a strategic way to achieving the nation’s goal of carbon neutrality. Attempts pushing for capping net metering, rolling back renewable energy standards, and imposing bureaucratic and discriminatory burdens on consumers should all be rejected. Ignoring the utilities and fossil fuel enthusiasts, lawmakers should financially incentivize consumers, communities and companies to invest in solar. From making solar more financially accessible to communities to allowing non-utility companies to sell solar power, calculated policies will drive competition, lower costs and increase efficiency in the solar industry.
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Thu, Jun 10
It was recently revealed that Virginia’s Democratic Lt. Governor nominee, Delegate Hala Ayala, received $100,000 from Dominion Energy despite her promises since 2017 that she wouldn’t take any money from the investor-owned monopoly utility. Ayala insisted that the money was a necessary infusion into her campaign in order to fund her voter outreach efforts ahead of Primary Day. She now says she was mistaken about the corrupting influence of Big Power. Nothing to see here, folks.
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Thu, Jun 10
Southeastern monopoly utilities are trying once again to convince federal energy regulators that they can be trusted with operating a centralized energy exchange market in the region. Duke Energy, Southern Company, the Tennessee Valley Authority, and other utilities filed an updated proposal this week in an attempt to convince federal regulators that they really do support competition.
In reality, these monopoly utilities are simply trying to maintain their stronghold over the Southeast energy market by creating the Southeast Energy Exchange Market (SEEM). Despite this flawed proposal already being rejected by the Federal Energy Regulatory Commission (FERC) in May, the utilities resubmitted their proposal to form a faux-competitive energy exchange market in the Southeast. The continued attempts by the utilities fail to provide what Southeast consumers really want - real energy choice in a truly free market.
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Wed, Jun 09
Incumbent utilities in Georgia, Ohio, and Illinois are trying to put their fingers in the pockets of ratepayers to cover everything from cost overruns on outdated generating assets to ransom payments for clean energy legislation.
In Georgia, ratepayers are on the hook for never-ending delays on the Vogtle nuclear powerplant. In Ohio, corruption continues to plague utility lackey lawmakers. And in Illinois, a utility-backed $1 billion bill will cost consumers high prices for a plan that won’t achieve the goals it needs to. These cases aren’t one-offs. In fact, they continue to demonstrate the need for a competitive energy market that drives down the consumer and spurs innovation in the marketplace.
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Mon, Jun 07
Owners of Nissan Leafs in the United Kingdom are able to take advantage of vehicle-to-grid capability, which allows for two-way flows of electricity for owners to charge up their battery or to draw on that when it’s needed by the grid.
This technology harnesses the ability for grid operators to meet over 25 percent of peak power demand by 2030, but faces major challenges due to utility monopolies’ policies. In the U.S., many consumers are unable to take advantage of this innovative technology because utilities block consumers from doing so. It underscores the need to unleash the power of competition and provide consumers the opportunity to not only choose their provider but also to generate and sell their own energy.
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Mon, Jun 07
Recent polling by Morning Consult shows that a majority of Americans believe competitive markets are more effective at lowering consumer energy costs than energy monopolies. Additionally, Americans see competitive markets as the best vehicle to promote technological innovation, maximize energy efficiency, ensure energy reliability, and reduce carbon emissions.
The polling is crystal clear in favor of market competition: Three out of four respondents believe that market competition will lower costs for customers, encourage innovation and support economic growth. The data also shows that 85 percent of Americans believe consumer choice is very or somewhat important.
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