About Us
Beginning in the mid-1990's, several areas of the United States made a series of decisions to restructure their electric markets, going from vertically-integrated utilities that built generation to serve all customers within exclusive franchise areas to regional centralized markets where all generators bid into the market to sell their power to wholesale customers who then resell that power to end-use, retail customers. Some, but not all of the states within these restructured electric markets also decided to allow individual electric consumers to choose their electricity supplier. As part of this restructuring, many utilities were forced to divest some or all of their own generation with the idea of increasing competition within generation markets. This restructuring resulted in the formation of regional transmission organizations and independent system operators to run the centralized markets and operate regional electric systems.
At the same time, other regions and states made the decision to retain vertically-integrated utilities with exclusive franchise areas within which the local utility maintains an obligation to serve all customers. Utilities in these states continue to own generation, transmission and distribution systems and operate them as an integrated system. Rates to customers in these states reflect the bundled services provided by these integrated utilities and are regulated by state public service commissions. While utilities in these traditionally regulated markets still compete in wholesale electric markets, they do so through bilateral contracts with other utilities rather than by bidding into a centralized market.
During the first few years of restructured markets, numerous studies were done looking at how these two types of remaining electric markets were operating. These studies primarily focused on whether centralized markets offered lower rates to electric consumers than did traditional regulated markets. These studies had mixed results depending on who was doing the study, but some independent researchers suggested that at least in the early years of centralized markets, there didn't seem to be either large gains or losses from restructuring. But since those early studies, limited research has been done regarding how centralized markets and traditionally regulated markets have fared. And few have looked at other aspects of electric markets that are critical to customers and the national economy, such as assurance that there will be sufficient generating capacity to meet customers' future needs, and the reliability of power supplies. We now have over 15 years experience with centralized bid-in markets and unbundled utilities operating next to vertically-integrated utilities subject to state economic regulation. But we have little analysis that examines this fifty state experiment.
The Electric Markets Research Foundation has been formed to fill this void by funding studies by academics and other experts on electric market issues of critical importance. Examples of the types of studies to be funded include research regarding:
The Electric Markets Research Foundation will also participate in regulatory and legislative forums to present the results of its research for the purpose of informing public policy debates on issues related to the structure and operation of electric utility markets. Information regarding the Foundation's research will be disseminated through journal articles, papers, presentations and through a mailing list of interested parties.
At the same time, other regions and states made the decision to retain vertically-integrated utilities with exclusive franchise areas within which the local utility maintains an obligation to serve all customers. Utilities in these states continue to own generation, transmission and distribution systems and operate them as an integrated system. Rates to customers in these states reflect the bundled services provided by these integrated utilities and are regulated by state public service commissions. While utilities in these traditionally regulated markets still compete in wholesale electric markets, they do so through bilateral contracts with other utilities rather than by bidding into a centralized market.
During the first few years of restructured markets, numerous studies were done looking at how these two types of remaining electric markets were operating. These studies primarily focused on whether centralized markets offered lower rates to electric consumers than did traditional regulated markets. These studies had mixed results depending on who was doing the study, but some independent researchers suggested that at least in the early years of centralized markets, there didn't seem to be either large gains or losses from restructuring. But since those early studies, limited research has been done regarding how centralized markets and traditionally regulated markets have fared. And few have looked at other aspects of electric markets that are critical to customers and the national economy, such as assurance that there will be sufficient generating capacity to meet customers' future needs, and the reliability of power supplies. We now have over 15 years experience with centralized bid-in markets and unbundled utilities operating next to vertically-integrated utilities subject to state economic regulation. But we have little analysis that examines this fifty state experiment.
The Electric Markets Research Foundation has been formed to fill this void by funding studies by academics and other experts on electric market issues of critical importance. Examples of the types of studies to be funded include research regarding:
- how capacity markets are working to ensure that new generation gets built when needed;
- the ease or difficulty in getting transmission built;
- the risk reward relationship among customers, utilities, and power suppliers;
- regulatory jurisdictional relationships and issues, and;
- renewable energy production, use and integration - both centralized and distributed
The Electric Markets Research Foundation will also participate in regulatory and legislative forums to present the results of its research for the purpose of informing public policy debates on issues related to the structure and operation of electric utility markets. Information regarding the Foundation's research will be disseminated through journal articles, papers, presentations and through a mailing list of interested parties.
The Electric Markets Research Foundation has been established as a District of Columbia non-profit Corporation and the Foundation's Articles of Incorporation and Bylaws have been prepared to meet the requirements of Section 501(c)(3) of the Internal Revenue Code as a charitable, scientific and educational organization. The programs and activities of the Foundation are also consistent with Section 501(c)(3).
We are currently in the process of requesting the Recognition of Exemption under Section 501(c)(3) from the Internal Revenue Service. Once the Foundation's tax exempt status is granted, donations received prior to the exemption determination would be treated as tax deductible contributions retroactive to the date of the Foundation's formation (November 15, 2012). However, it is not possible to predict with certainty what the
determination of the Internal Revenue Service will be. If the application is ultimately not approved, then contributions to the Foundation would not be tax deductible.
We are currently in the process of requesting the Recognition of Exemption under Section 501(c)(3) from the Internal Revenue Service. Once the Foundation's tax exempt status is granted, donations received prior to the exemption determination would be treated as tax deductible contributions retroactive to the date of the Foundation's formation (November 15, 2012). However, it is not possible to predict with certainty what the
determination of the Internal Revenue Service will be. If the application is ultimately not approved, then contributions to the Foundation would not be tax deductible.