Retail Rate Impacts of State and Federal Electric Utility Policies

Most states that pursued restructuring hoped that it would encourage competition and other efficiencies that would reduce their relatively high rates. An analysis finds that retail access has provided such a rate reduction for residential customers, though this reduction has been relatively small in states that adopted RPS. Retail access has had no significant impact on commercial and industrial rates in states without RPS, but has significantly raised these rates in states with RPS.