A Response to Two Recent Studies that Purport to Calculate Electric Utility Restructuring Benefits Captured by Consumers

Recent studies by Global Energy Decisions and Cambridge Energy Research Associates offered high “headline impact” in finding that find that wholesale electric competition is fulfilling its promises and restructuring is benefiting consumers to the tune of billions of dollars. But both studies share a fundamental problem tied to the fact that portions of those “savings” to consumers accrue from losses suffered by the competitive generation sector.