36,000 MW now served competitively in the U.S.
BURLINGTON, Mass., Aug. 22, 2002 — Dispelling the notion that electric deregulation is dead, research released recently by XENERGY shows a dramatic growth in competitively supplied electricity in the U.S. over the past year. Among the most significant results released recently is the finding that load switched to competitively priced electricity this year has more than doubled what was seen last year at this time.
The findings reported by XENERGY in a conference call with clients recently show that an estimated 36,000 megawatts (MW) of electricity demand is currently being competitively supplied, a remarkable increase from an estimated 15,000 MW that was supplied at this point in 2001. A megawatt is roughly equivalent to the amount of electricity used to power 1,000 homes. When defined in terms of customers, XENERGY reports a rise in migration from 1.4 million customers switched in 2001 to more than 2.2 million currently.
XENERGY officials also reported estimates on customer participation in restructured markets and identified a number of pro-market initiatives in several states over the past few months that have helped advance retail competition.
“Restructuring is in on the rebound,” according to Bruce Humphrey, Vice President of XENERGY. “The difficulties experienced in California and the Enron debacle have given electric restructuring a black eye. The reality is that customers in states that have well designed markets are benefiting, particularly business customers, and suppliers to those customers are benefiting as well.”
Of the 36,000 MW switched, Texas accounts for roughly 11,000 MW. Other states contributing more than three thousand MW include Illinois, California, New York and Ohio.
“With Texas leading the way, we expect to see continued growth in the number of customers and amount of demand served at market-based prices.” Humphrey states.
XENERGY (www.xenergy.com) is an energy consulting, information technology and energy services firm headquartered in Burlington, Massachusetts, with offices across the United States. The company offers consulting services on a wide range of energy issues, and works with utilities, energy service companies, industrial and commercial customers, institutions and government agencies. Founded in 1975, XENERGY is a wholly owned subsidiary of KEMA Consulting.