EMRF Study Analyzes Reliability of Electricity Market Types

The Electric Market Research Foundation, or EMRF, recently released the results of a new statistical study indicating that geographical regions served by traditionally regulated utility companies have access to more reliable electricity than do regions with restructured electricity markets.

Traditionally regulated utility markets are those markets that are based on the customary requirements and regulation of vertically-integrated utilities, in which utility companies provide their customers with services of generation, transmission, and distribution of electricity at prices that are regulated by government agencies at the state level. About one-third of American citizens obtain their electricity through this type of market.

The other approximately two-thirds of American consumers obtain their electricity from restructured markets in which prices for wholesale power are determined by competitive bidding by individual utility companies or unregulated retail suppliers. Such markets are managed by RTOs, or regional transmission operators.

The EMRF study analyzed how each of these two types of markets address issues of reliability of access to electricity and found that restructured markets are less reliable for customers, particularly in times of storms or other natural emergencies.

For more information on the recent EMRF study and its implications for electricity distribution in various types of markets, read on at http://www.marketwatch.com/story/emrf-study-finds-restructured-electricity-markets-challenged-to-ensure-reliability-without-major-changes-2014-06-17