APPA Study Debunks NY PSC Report on Electric Restructuring

In March 2006 the New York Public Service Commission issued a Staff Report on the State of Competitive Energy Markets lauding the claimed results of its efforts to restructure New York state’s wholesale and retail electricity industry. A new study undertaken for the American Public Power Association (APPA) examines the methodology of the New York PSC report and other reports that have attempted to measure costs and benefits of restructuring. With respect to the New York PSC report, the APPA report states:

In summary, the intention of this staff report of the New York State Department of Public Service seems not to be a careful or balanced assessment of the issues. Rather, it is at best an update on changes in the electricity (and gas) markets in New York and in state policies affecting these markets. Even as an update, however, it pays inadequate attention to causation and precision in its evidence and claims.

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