US retail power market expected to grow, but slowly: KEMA
Washington (Platts)--19Oct2004
US competitive retail power market growth only will inch above levels posted in 2003, but show much stronger growth in 2005, 2006 and beyond. The market was about 300-mil MWh at the end of 2003, but will grow to about 475-mil MWh by year-end 2009, said Taff Tschamler, director of the retail energy markets advisory service for KEMA Inc. The 8% annual growth of the market through 2009 compares with growth of over 100% from 2001 to 2002 and 16% from 2002 to 2003, Tschamler said. "The market is going to be a real mix, with less activity in some states and more activity in other states," he said. Texas will remain the largest and most competitive market, he said, followed by what Tschamler characterized as "second-tier" markets--Illinois, New York and Ohio. California also is a significant market, although new customer-choice options currently are suspended, he said. KEMA does not anticipate major new market openings in the near term, but does anticipate the opening on non-ERCOT markets in south Texas.
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