Six independent power producers and electric retailers announced Thursday they have formed a new organization to promote renewable energy and lobby states for greater customer choice.
The Retail Energy Advancement League (REAL) said it will push for more consumer control over the purchase, production and consumption of electricity, data usage and energy services.
REAL spokesperson Kate Philips said the organization believes “customer empowerment can be a lever” for aiding the transition to a low-carbon power system. Philips said REAL’s set of principles include putting control of energy decisions in the hands of consumers and a belief that “advanced competitive retail energy markets” can aid in the “modernization” of energy markets.
The founding companies of the group are IPPs Calpine Energy, NRG Energy (NYSE: NRG) and Vistra (NYSE: VST) and green retailers CleanChoice Energy and IGS Energy. Retailer Constellation Energy (NASDAQ: CEG), which separated from Exelon this week, serves as a founding associate member.
“Americans deserve easily accessible energy choices that reflect their lifestyle goals and choices,” said NRG CEO Mauricio Gutierrez, chair of REAL. “It’s time to allow competitive energy markets to drive innovation and put the power in the hands of people.”
REAL’s Board of Director’s include Gutierrez, Vistra CEO Curt Morgan, CleanChoice Energy President and CEO Tom Matzzie, IGS Energy President and CEO Scott White and Calpine Energy President and CEO Jim Wood. Its first CEO is expected to be announced at the National Association of Regulatory Utility Commissioners’ Winter Policy Summit in Washington later this month.
Maryland, Pennsylvania, Arizona
The group says it believes “competitive retail suppliers should be the entities tasked with helping customers achieve their energy goals.”
Philips said companies are motivated more today to invest in clean energy solutions, and a market that “enables regulated utilities to focus on maintaining and improving the state’s power infrastructure” can promote investment in new technologies.
REAL plans on having a “strong presence” in state capitals across the country, Philips said, and wants to work with other groups with shared goals. REAL is already teaming up with the existing Choose Who You Use electricity consumer campaigns in Maryland, Pennsylvania and Arizona.
Philips said polls consistently say customers want choice in their energy decisions. She said REAL will look to make policy decisions “based on what’s best for our customers in states across the country.”
“We think the market works better when the satisfying the consumer is the driving incentive, and not just whatever monopolies can convince regulators to let them charge their monopoly customer base,” Philips said. “Whenever they are polled, people say they want choice — and do not understand why energy is the single sector where they don’t have it. Every state that offers customer choice, but has chosen to put limits on it, has a waiting list out the door.”
Listening to Consumers
REAL officials cited a 2018 survey by Consumers Union, publisher of Consumer Reports, that gauged consumers’ attitudes toward their utility companies.
The findings included customers agreeing with the statement “I want to be able to choose my electricity provider” by a 10-to-one margin, with 76% supporting increased use of renewable energy. The survey also found that an additional 48% of all Americans would be willing to pay $5 more per month to buy 100% renewable energy.
Travis Kavulla, vice president of regulation for NRG Energy, said in a Twitter thread on Thursday that there is “a lot of work to be done” to make sure customers that already have a choice in their energy provider are “educated and empowered” in knowing their options and finding ways to improve their options.
“In every other part of our society we empower individuals to make the decisions that are best for their families and their businesses,” Kavulla said. “The electric sector stands out like a sore thumb — even at a time when we are more and more relying on it to drive a transition.”