EPSA will continue advocating for competitive power markets because they deliver what matters most
As the White House and other energy policy decisionmakers address how to supply growing power demand, EPSA President and CEO Todd Snitchler shared insights last week into the pivotal role competitive power markets play in meeting America’s evolving energy needs. Speaking alongside trade association leaders representing hydropower, coal, and the nation’s state utility commissioners at the U.S. Energy Association’s State of the Energy Industry Forum, Todd discussed how competitive power suppliers represented by EPSA can meet the moment and help win the race to keep America an economic leader.
Key Points:
- Consumers benefit from states participating in competitive power markets — saving between $3.2 and $4 billion annually.
- Stability is critical for the long-term infrastructure investments required to support a reliable, clean energy future.
- Clear guidance from FERC on co-location is needed.
- Competition will be essential to winning the AI race.
The Energy Trilemma: Meeting Demand and Policy Goals
EPSA member companies own and operate more than 175,000 megawatts of diverse energy assets across the country, including natural gas, nuclear, hydropower, battery storage, wind, solar, and even coal. They are uniquely positioned to deliver reliable, cost-effective, and increasingly cleaner electricity to consumers.
Competitive power markets are essential to solving the energy trilemma of providing reliable, affordable, and sustainable electricity. By shifting investment risks away from consumers and onto shareholders, EPSA members ensure customers benefit from market-driven efficiency and innovation without bearing the financial burden of bad investments.
As Todd explained, “If we make a good investment, it benefits the asset owner. If we make a bad investment, there’s no cost to anyone other than the shareholders and investors.”
This structure is particularly important as electricity demand grows—fueled by data centers, hyperscalers, and electrification—and state energy policies continue to diverge. In the past 20 years, demand was relatively flat, but now the curve is bending upward, and markets must respond. Todd emphasized that these markets, originally designed for least-cost economic dispatch, now face the additional complexity of integrating varied state policy goals, including aggressive decarbonization targets.
Compromise: The Cornerstone of Market Success
One key message Todd delivered is the need for compromise and collaboration. “Compromise is part of voluntarily participating in an organized market,” he said. “And parties need to be reminded that that was the bargain that was made when they elected to join them. And their consumers have benefited.”
For example, he noted that PJM’s annual assessment shows that consumers save between $3.2 and $4 billion annually because states participate in organized markets. Abandoning these markets in favor of vertically integrated models or integrated resource plans would be counterproductive, increasing costs and slowing progress.
Instead, Todd urged stakeholders to “move the pot from a front burner at high heat to a back burner on low heat” to allow time for thoughtful solutions that are durable and sustainable. Such stability is critical for the long-term investments required to support a reliable, clean energy future.
Regulatory Guidance and Market Innovation: Clarifying Co-location
Competitive power markets are adapting to challenges through innovation. From co-located energy projects supporting large-scale data centers to advanced clean energy technologies, market participants are finding ways to deliver power reliably and cost-effectively. However, clear regulatory guidance at both the state and federal levels is essential to accelerate these efforts. “If we lay out rules of the road that make it clear about who pays, how much, and what’s required for approvals,” Todd noted, “we can achieve policy goals more effectively while maintaining reliability and affordability.”
Todd also highlighted ongoing discussions about load-carrying capability, resource crediting, and other critical market design issues currently pending before FERC. Addressing these matters thoughtfully will ensure markets continue to deliver on their promise of reliability, cost-effectiveness, and cleaner energy.
We Want to Win This Race
In closing, Todd reminded the audience of the high stakes in this transition. “We want to win this race. Losing to international competitors—many of whom aren’t friendly to our interests—is not an option.” He said EPSA will continue advocating for competitive power markets because they deliver what matters most: keeping the lights on, the beer cold, and the water warm—at prices consumers can afford.
By fostering collaboration, embracing innovation, and providing stable regulatory frameworks, competitive markets can drive the energy transition forward—ensuring reliability, affordability, and sustainability for decades to come.
