CAEM's
RED Index 2001 July Update Issued: Includes Canadian Provinces and Territories

     Our comprehensive index benchmarking the progress states are making toward retail customer choice.

  

     The Retail Energy Deregulation Index (RED Index) is a scorecard developed by the Center for the Advancement of Energy Markets, an independent, non-profit, Washington, DC based, think tank specializing in energy competition policies.  The RED Index measures a state’s progress in adopting policies that give consumers the right to choose their electricity supplier. The Index evaluates a state’s policy on 22 criteria, which are weighted by importance.  The highest score a state can receive is 100.  States can receive negative scores for explicitly rejecting a policy of customer choice.
     The RED Index is a measure of the policies necessary to provide customers with effective choice.  While the number of customers that have switched is one criteria, the RED Index is not a measure of the competitiveness of the market for suppliers or merely which market is the most “open,” as measured by eligibility of customers.  A state could rank high on the RED Index (Texas) even though its consumers cannot yet make a choice of supplier. A state could be completely open (California) but not rank high, because they have put the wrong subsidiary policies in place.

The RED Index evaluates policies such as:

  • Is there a detailed plan for customer choice?

  • How many customers can currently make a choice and how many have switched to competitive suppliers?

  • Are there safeguards to ensure fair competition between the utility and new suppliers?

  • Are there standard business practices and is competition in metering and billing allowed?

  • Is generation deregulated and is there a vibrant wholesale supply market?

  • How are customers integrated into the program?  Are they informed about their options?  Is customer information disseminated to promote competition?  Are customers encouraged to shop in the competitive market?

  • Are utilities encouraged to offer new services and to cut costs for the transportation services they provide?

  • Has the state commission adopted internal reforms to accommodate their new responsibilities?

    RED Index 2001 covering electric restructuring for the United States (50 states and the District of Columbia) was issued in February 2001.  An update was issued in May 2001 that included electric restructuring in Canada’s Provinces and Territories.  The RED Index for both Canada and the US will be updated for developments through June 2001 in July 2001.  Additionally, CAEM will issue it first edition of a gas restructuring index for both Canada and the US in 2002.

Ordering the RED Index 2001

    There are three ways to obtain a copy of the RED Index:  invoice, at a reduced rate, and free.  Please read the description of each to find out which way is best for you.

Invoice:
     If you order the RED Index 2001 for a $995 annual project fee and pay via invoice, you will receive an e-mail with a .pdf file containing your invoice and instructions on how to download RED Index 2001. The Annual Project Fee includes this July update on the US and Canadian Electric Index and a US and Canada Natural Gas Index in the fall.
Small Business Discount:
     If you represent a small business, you may request a copy of the RED Index 2001 at a reduced price. The Annual Project Fee includes this July update on the US and Canadian Electric Index and a US and Canada Natural Gas Index in the fall.
Free:
     If you represent a government agency, a non-profit public interest organization or educational institution, you may request a free copy of the RED Index 2001.