The following is an excerpt from an Energy Solutions Forum Policy Primer for the New York Energy Week Series Breakfast, Women in Government and Utilities.

Electricity is sold to consumers in retail markets that are regulated by state or local governments. These electricity market models, standards, and pricing authorities vary by region and state. Some states use a vertically integrated utility model that provides customers with electricity by utilities at regulated rates, and other states use a restructured model that allows companies to compete to sell electricity to customers. The preferred model is debated at the state level. Regardless of the market model, most consumers currently pay a near-constant price for their electricity consumption, even though wholesale prices fluctuate throughout the day. Federal and state programs to provide consumers real-time information into the wholesale market will allow consumers to make informed consumption decisions and help align the wholesale electricity price with consumer price. Efforts of the Federal Energy Regulatory Commission (FERC) and Department of Energy (DOE) to develop a nationwide smart electric grid will optimize two-way communication and facilitate this real-time pricing and demand response. FERC is also continuing to pursue market reforms to allow all resources, including renewable energy, to compete in electricity markets.

You can read the rest of the primer here.

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