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Competitive Energy Markets Studies, Reports and Detail Benefits Overview With several years of data now available for analysis, there is ample evidence that competitive electricity markets deliver reliability and economic benefits for both wholesale and retail consumers. That evidence is detailed in a number of recently issued studies, reports and white papers, many of them written by independent entities. This is a list of recent reports and studies.   ISO / RTO Council The ISO/RTO Council (IRC) in November 2005 issued a comprehensive report “The Value of Independent Regional Grid Operators”.  The compilation of the benefits provided by the nine Independent System Operators and Regional Transmission Operators in North America .  Here is the news release and the report. The Fraser Institute The Fraser Institute, a Canadian think-tank issued a study in October 2004 analyzing the reduced costs and other positive impacts of electricity deregulation.  It looks at 13 U.S. States as well as jurisdictions and finds significant benefits accruing to those areas. A news release with a link to the study is on the Fraser Institute website CAEM The Center for the Advancement of Energy Markets (CAEM) is an independent, non-profit, public policy think-tank that supports a transition from energy monopolies to an open-access, customer choice world. A recent CAEM study concludes that market-based approaches to improving reliability, including market-based demand response initiatives and distributed energy. will more closely link consumer preferences and consumption levels with costs. Click here for more information and to download the report. ICF Consulting An independent consultant prepared a study assessing the benefits of the Midwest ISO to consumers.  Issued in October of 2005, it corroborates earlier studies that found significant cost reductions delivered to both wholesale clients, and end-use electrical customers. The ICF Consulting study is on the MISO website.   New England ISO The ISO New England conducted an internal assessment of the benefits it provides to customers. The report titled, “Progress of New England’s Restructured Electric Industry and Competitive Markets” was issued in April of 2005 and can be found on the NEISO website at www.iso-ne.com/pubs/whtpprs/rto_paper.pdf. The ISO New England also developed an in depth report looking at the value and benefits it’s wholesale energy markets deliver to participants and end use customers. That report was posted to the ISO NE Website in September of 2005.  In October of 2005, the CEO of the New England ISO delivered a speech to a regional energy forum that was based on the previously mentioned report. The speech delivers a concise synopsis of the reports main themes, and is also available on the ISO NE website. UC Berkeley The Center for the Study of Energy Markets at the University of California Berkeley issued a report in July of 2004 that found independently owned generators operate 5 percent more efficiently that those retained by Investor Owned Utilities in the post-restructuring world, and 15 percent more efficiently than municipally owned similar units. That report is on the CSEM website at: http://www.ucei.berkeley.edu/PDF/csemwp135.pdf IEEE (Institute of Electrical and Electronic Engineers) An article coauthored by several experts for Power and Energy, a magazine published by the Institute of Electrical and Electronic Engineers, examined the role of competitive markets in fostering renewable energy. It found restructured, market-based power systems are already very friendly to renewable energy resources, and they are continuing to make strides. The article “Wind Energy Delivery Issues” was published in the November/December 2005 issue of Power and Energy. PJM Study Wholesale electricity customers are saving more than $500 million a year as a result of the expansion of PJM Interconnection through its market integrations over the past several years, according to the results of a study, titled "Impacts of the PJM RTO Market Expansion," carried out by Energy Security Analysis, Inc.  Link: http://www.pjm.com/documents/downloads/reports/20051101-impact-pjm-expansion.pdf GED Study Global Energy Decisions, LLC, “Putting Competitive Power Markets to the Test – The Benefits of Competition in ’s Electric Grid: Cost Savings and Operating Efficiencies”, July 2005, at RS-15.  The paper found savings of $15 Billion from competitive electricity markets. Three primary points of the paper included 1) consumers have received $15.1 billion in value from wholesale competition between 1999 and 2003. 2) Power plants operate more efficiently under competition and 3) PJM’s western growth produces an annual production savings of $85.4 million.  Link: http://www.globalenergy.com/articles/competitive-power-study.pdf CERA Study Cambridge Energy Research Associates’ study result is that conventional wisdom about power price increases is at odds with the real prices.  They calculate $34 billion in savings has been achieved.  This is over the past seven years and compares the actual amount paid to an amount calculated that would have been paid under traditional regulation.  Link: http://cera.ecnext.com/coms2/summary_0236-681_ITM Other Articles Presentation by Paul O’Malley, CEO, TXU Energy, February 8, 2005, “Electric Competition in Texas – A Success Story,”   Presentation by C. John Wilder, CEO, TXU, “Texas Electric Market Restructuring – A Customer Success Story,” and discussion with Jonathan Siegler, TXU.