Power Electronics

Competitive Retail Power Markets Advance in 2003

According to a recently published KEMA analysis, U.S. retail power competition experienced substantial progress in 2003. More than 52,000 MW of estimated peak electricity demand is now being competitively served—an increase of 12,000 MW over the past 12 months and 35,000 MW since the California energy crisis subsided in 2001. The 52,000 MW represents 7% of the approximately 720,000 MW of total U.S. peak summer demand.

The Texas market leads the country in terms of customer load migration, new entrants and choice of competitive offers. Of the 52,000 MW switched in the competitive markets nationwide in 2003, Texas accounted for approximately 17,000 MW. By comparison, Illinois, California, New York, Pennsylvania and Ohio each accounted for more than 3,000 MW.

The growth in customer participation is occurring in conjunction with an increase in the number and the market share of new entrants. Over the past year, more than 20 firms have entered competitive retail power markets while the top five competitive providers now serve between 2,500 MW to 10,000 MW of customer peak demand, equivalent to a mid- to large-sized regulated U.S. utility.

For more information, visit www.kemainc.com.

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