April 3, 2003 — The 4th Edition of the RED Index (Retail Energy Deregulation Index), issued yesterday by the Center for the Advancement of Energy Markets (CAEM) at the Edison Electric Institute’s National Accounts Conference, shows that California’s well-publicized troubles, the Enron collapse and the financial crisis in the energy industry have all but halted progress on electricity competition in the U.S. As an alternative, however, experiments with “virtual choice” in regulated markets are picking up.
The report notes that Texas continues to lead the US and the UK leads the world in electricity restructuring, while progress continues in Canada, Australia and New Zealand. Eight states lead the U.S. in giving customers the option of supplier choice. Texas leads the U.S. with a score of 69 out of 100, giving it a third-place ranking internationally. Pennsylvania, Maine, New York, the District of Columbia, Michigan, Maryland, and New Jersey all have laudable scores over 50.
Federal Energy Regulatory Commission (FERC) Chairman Pat Wood has praised CAEM’s RED Index, stating: “As we worked to set up Texas’s wholesale and retail power markets while I was chairman of the Public Utility Commission of Texas, the RED Index was our objective benchmark for measuring success. Although our focus at FERC is on wholesale markets, I still look at CAEM’s fine work on the RED Index as an excellent barometer for the state of global power markets today.”
Copies of the RED Index are available at no cost from http://www.caem.org.