Substantial Achievements From Electricity Industry Restructuring in Connecticut
April 12, 2010 11:48 AM US Eastern Timezone
Progress measured in broad areas of electricity supply, demand, efficiency and competition
HARTFORD, Conn.--(BUSINESS WIRE)--A report released today by the New England Energy Alliance (NEEA) finds
that Connecticut has realized substantial benefits from the
restructuring of its electricity industry a decade ago. These benefits
include: significant additions of cleaner electricity generation;
increased energy efficiency across all customer segments; more in-state
renewable energy resources; and an increasingly competitive and robust
retail market that enables customers to shop for lower electricity
prices.
“The positive findings, however, don’t mean that
additional refinements to the industry’s restructuring won’t be needed.
But it is clear that the competitive marketplace is working to the
benefit of both customers and the environment.”
Two more recent legislative statutes amended restructuring efforts to
increase energy efficiency, develop more renewable energy resources, and
better promote customer choice. NEEA sponsored the assessment of those
statutes regarding their influence on Connecticut’s electricity industry.
“The results validate that electricity industry restructuring has been
measurably beneficial in several areas,” said Paul G. Afonso, Executive
Director of NEEA. “The positive findings, however, don’t mean that
additional refinements to the industry’s restructuring won’t be needed.
But it is clear that the competitive marketplace is working to the
benefit of both customers and the environment.”
The report cited several achievements in particular:
- Significant investment in new generation. There are currently
more than 4,000 Megawatts (MW) of new generation in various stages of
development in Connecticut. If eventually constructed, the state’s
total electricity generation capacity would increase by 50% --
increasing competition, lowering electricity prices and creating much
needed jobs.
- Substantial reductions in emissions. The construction of highly
efficient, natural gas-fired generating plants, fuel switching to
cleaner fuels by existing plants, and reduced generation because of
decreases in electricity demand have resulted in significant emissions
reductions. Since 2005, carbon dioxide emissions from electricity
generation have decreased 20%, nitrogen oxides 61%, and sulfur dioxide
77%.
- Dramatic increases in energy efficiency and demand resources. More
than 400 million kilowatt-hours of electricity are saved each year
from consumer-funded efficiency programs administered by the state’s
utilities. This is enough electricity to supply over 47,000 homes.
Connecticut consumers and businesses contribute almost $100 million
per year towards these programs that make the state one of the most
energy efficient in the nation. These programs also avoid the
generation of greenhouse gases – equivalent to taking over 30,000 cars
off the road every year.
- Development of renewable energy resources. The state’s
renewable portfolio standard (RPS) requires electricity suppliers to
purchase increasing amounts of electricity from renewable resources –
growing to 27% of total electricity load by 2020. Due to these
requirements, several hundred megawatts of renewable generation are
under development in Connecticut – including landfill gas, hydro,
biomass and wind generation.
- Escalating success in retail competition. Since 2005, there has
been triple-digit growth in the number of customers served by
competitive suppliers, particularly in the residential sector. Today,
alternative suppliers serve 20% of all customers and supply half of
all electricity sold in the state. Connecticut’s competitive electric
market has also attracted 35 companies that are investing substantial
capital in the state and employing hundreds of residents.
These findings should guide the legislative policy debate underway in
Connecticut on lowering the price of electricity. Under legislative
consideration are a number of proposals that would radically change the
electricity market in Connecticut, curtailing consumer choice and market
competition.
“High electricity rates are a concern and should be addressed, but not
at the expense of consumer choice and market competition,” said Afonso.
“Our assessment indicates the best approach to more reliable and
affordable electricity is to stay the course and keep building on the
considerable progress that has been achieved under electricity
restructuring.”
The full report is available on NEEA’s website at www.newenglandenergyalliance.org
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