<[link removed]> FEBRUARY NEWSLETTER Principles of Energy Freedom The energy transition and electrification of everything is driving the rapid growth of demand for electricity in the United States, creating challenges in the existing transmission and distribution infrastructure needed to keep pace with demand. Distributed energy resources (DERs) like solar roofs and battery storage offer a flexible solution to this challenge while creating a more resilient and reliable electricity system. At the same time, advanced energy and information technologies create an opportunity to modernize the electric power grid. This modernization and growth in DERs give consumers more freedom to choose their energy and service providers. More consumer choice will reduce electric bills, enhance reliability, and improve the environmental performance of the power sector. The regulatory framework for the electricity system in many parts of the country, however, has not kept up with technology, creating barriers to full energy freedom for consumers. The retail, and in some cases the wholesale, electric power system in many regions of the country has been largely run and regulated the same way since the early 1900s. The existing patchwork of state regulatory policies results in inconsistent capture of the value of our rapidly evolving energy technologies. Regulation of wholesale electricity markets changed significantly beginning in the 1990s, but major barriers to advanced technologies and consumer choice remain. Policy reforms are needed to create a modern, 21st century power grid. DERs now enable non-utility entities, including consumers, to play a larger role in meeting the energy needs of those served by the grid. Rapid advances in information and communication technologies are making it feasible and convenient for consumers to provide other energy services to the grid, including unlocking demand-side grid management at times of peak demand. These advanced technologies enable the grid to become a platform that links consumers and retail electricity services companies to the wider wholesale power market and grid operations. A regulatory framework inherited from the last century, however, is blocking this transition. Much of the framework was developed for a system that relied almost exclusively on large monopoly utility-owned power plants. It is time for the regulations to catch up with the 21st century and deliver the choice and value consumers want. Well-designed competitive retail and wholesale markets are essential to creating a 21st century grid and should be established nationwide. The following principles provide a unifying foundation for well-designed consumer choice in retail electricity markets, as well as the associated transmission and distribution system operations. PRINCIPLES OF ENERGY FREEDOM Consumer Choice. Customers should have a choice regarding who supplies their energy and the type of rates they have access to, from standard flat rates to time-of-use and even real-time pricing rates, in which case they may choose to adjust their consumption patterns to reduce their electricity costs. Encourages Electrification. As electricity becomes cheaper, while other energy prices remain more volatile, customers are incentivized to switch to more electric devices, including vehicles, appliances, and HVAC systems. Encourages Other Energy Services. Energy suppliers can also effectively provide incentives, programs, and services to reduce customers’ energy consumption, reduce peak demand, and help consumers invest in onsite generation, energy storage, and other behind-the-meter energy technologies to manage energy usage better. Reliability. Customers should expect access to electricity that is nearly 100% reliable. Competition. Competitive markets lead to higher quality and lower cost options. Transparency. Consumers should know what energy and services they are paying for and why. Retail prices should reflect the wholesale prices and not be affected by other costs, nor should they change substantially after an initial introductory rate. Right to Switch. Consumers should not be locked into long-term contracts with a given energy supplier when switching to another supplier that better meets their preferences is beneficial. Timeliness & Accuracy. Consumers should not be held responsible for delays in enrollments, routine billing problems, or any mistakes caused by their energy suppliers. Property Rights. Consumers should be allowed to generate and store their own electricity and be fairly compensated for any excess generation they contribute to the grid. Right to Data. Consumers should have the right to access their data in real time and share that data with third-party suppliers and service companies. Economic Development. Consumers and their communities should benefit from the jobs created and investments made due to the growth in the clean energy economy. Equity. All customers should have access to a wide variety of energy supply options. Governance. Consumers should be protected from charges and fees. Any energy supplier that can charge its customers fairly should be allowed to serve them, while collusion among energy suppliers to raise rates should be prevented. Read more about energy freedom at EnergyChoiceCoalition.org <EnergyChoiceCoalition.org> Robert Dillon, Executive Director Join us and Our Energy Policy <[link removed]> on Wednesday, March 1, for a discussion on competition in energy markets and how it can help address the issues of rising generation costs and the reliability and resiliency of the grid. Panelists include Robert Dillon of the Energy Choice Coalition, Emily Fisher of the Edison Electric Institute, and Nick Loris of C3 Solutions. The discussion will be moderated by Todd Snitchler of the Electric Power Supply Association. The discussion kicks off at noon EST on March 1. Don’t miss it! Register here <[link removed]> . Noteworthy Posts from February <[link removed]> Fri, Feb 24 Senators Press FTC to Investigate Monopoly Utility “Anti-Competitive" Behavior <[link removed]> Senate Democrats on Capitol Hill are encouraging the Federal Trade Commission (FTC) to investigate vertically integrated electric utilities for abusing their monopoly power and hindering the transition to clean energy. In a February 6 letter to FTC Chair Lina Khan, the group of senators argued that monopoly utilities have engaged in “questionable practices” to stifle competition and undercut technologies such as rooftop solar, threatening the successful implementation of President Biden’s landmark Inflation Reduction Act. The letter is signed by Senators Sheldon Whitehouse (D-R.I.), John Hickenlooper (D-Colo.), Chris Van Hollen (D-Md.), and Elizabeth Warren (D-Mass.). Read the full letter here <[link removed]> . Read More <[link removed]> <[link removed]> Thu, Feb 23 Kiesling Explores How Regulated Utilities have Anticompetitive Effects on Related Markets in Latest Post <[link removed]> Check out the Knowledge Problem <[link removed]> for another great post by economist Lynne Kiesling on competitive electricity markets. In her latest commentary, Kiesling looks at the state of retail energy choice and why it has not kept pace with increases in competition in wholesale electricity markets. “Lots of possible theories exist for such weak competition — high customer acquisition costs, incumbent default service contracts as an entry barrier, regulation-mandated full depreciation of long-lived incumbent assets as a barrier to innovation, customer indifference, to name a few.” Read More <[link removed]> <[link removed]> Thu, Feb 23 Georgia Assembly Considers Expanding Community Solar and Net Metering Caps <[link removed]> Georgia state Sen. Jason Anavitarte has introduced SB 210 <[link removed]> , in the Georgia Homegrown Solar Act of 2023 in the Georgia Assembly to expand community solar and net metering in the Peach State. The legislation adds to Georgia’s Cogeneration and Distributed Generation Act of 2001, the expansion of the solar market by the Georgia Public Service Commission in 2013, and adoption of the Georgia Solar Free-Market Act of 2015. Solar Power World <[link removed]> reports that the legislation would update monthly net metering, create a nonprofit community solar program, and enhance access to consumer usage data. The bill would allow tax-exempt customers, such as governments and non-profits, to aggregate demand from multiple locations and purchase solar power from generating facilities under 3 MW. Read More <[link removed]> <[link removed]> Thu, Feb 23 Pennsylvania Customers Suffer Under Monopoly Utilities <[link removed]> Rising energy prices are prompting consumers across Pennsylvania to reconsider their monopoly utility’s default service and look for better options based on the lowest price and customer service. The Pacific Research Institute <[link removed]> and the Energy and Policy Institute <[link removed]> recently documented several incidences of consumers being subjected to skyrocketing electricity bills due to mistakes (or worse) by monopoly utilities. PPL Electric Utilities, a monopoly utility serving eastern and central Pennsylvania, recently sent estimated bills to their default service customers because a “technical system issue” that prevented them from accessing usage data. Many consumers experienced sticker shock when they received bills based on “estimated electricity usage” that were hundreds of dollars more than expected. PPL Electric Utilities’ Price to Compare increased by nearly 18 percent at the beginning of December and has nearly doubled over the past two years. Many customers are paying significantly more than they need to for electricity. PPL hit customers with an 18 percent rate increase on Dec. 1, but some people received bills that were 50 percent higher than expected. The Pennsylvania Office of Consumer Advocacy said more than 795,000 customers were affected <[link removed]> by the billing issue. Read More <[link removed]> <[link removed]> Energy Choice Coalition 25 Massachusetts Avenue, NW, Suite 820 Washington, DC 20001 United States Powered by Squarespace <[link removed]> Unsubscribe <[link removed]>