Did You Know

New York PSC Renews Vows with Competitive Electricity Markets

The New York State Public Service Commission (PSC) has issued an order reiterating that robust competition in energy markets, where feasible, “should continue to be this commission’s long-range vision.” Reaffirming its position as one of the most aggressive commissions in ensuring that its energy consumers reap the benefits from competitive power markets, the PSC adopted a “Statement of Policy on Further Steps toward Competition in Retail Energy Markets” (Commission Case 00-M-0504) on Aug. 25 to “refine its goals for, and vision of, the future of competitive energy markets in New York State.”

The report points out that New York has a competitive wholesale market and a retail market for large customer classes “that has attracted most of the electric and gas load.” Specifically, the report said, nearly 100 percent of the state’s largest gas customers and more than 60 percent of the state-wide large “time-of-use” commercial and industrial electricity customers are now being served by competitive energy service companies.

The policy statement finds that the energy markets in the state are highly successful, although the commission has committed to a continuous evaluation process that ensures a “fair and orderly” competitive evolution, according to PSC Chairman William M. Flynn. The PSC has particular goals of increasing customer migration to energy service companies and giving more choice to smaller users.

In recognition that development of well-functioning markets take time, the PSC emphasizes the long-term nature of its policies and asserted a number of positions. Among other concepts, the Competitive Markets Policy Statement supports:

• opening all utility retail functions, except the delivery over local utility systems, to competition;
• increasing the number of large customers for whom utilities provide real-time prices;
• developing a robust competitive retail energy environment whereby regulated utilities provide delivery services and competitors provide electricity supply;
• continuing to develop programs designed on a utility-specific basis that help consumers migrate to competitive energy service companies.

The policy statement also directs the state’s utilities to take additional steps to create the most level playing field possible for all companies seeking to offer alternative competitive energy service to New Yorkers. The PSC concluded by noting that the necessary infrastructure changes to support competition are now in place (generation divestiture, competitive wholesale markets, consumer protections, etc.), which in turn has positioned New York to remain in the forefront of retail energy market competition.

For more information, contact the New York State Public Service Commission at http://www.dps.state.ny.us/.