The nature of rules adopted for the competitive marketplace will strongly influence the pace and development of green power markets. Several green power marketers noted that new rules and mechanisms being established for restructured electricity markets are critical both to the development of competition in general and the success of green power markets in particular. Attendees used the different rules that marketers face in California, Massachusetts, and Pennsylvania as examples. In these states, marketers must sell green power on its virtues at a premium to the retail price. As a result it is expected that, at least over the short term, Pennsylvania will provide the best market environment for green power sales.
States can support emerging green power markets with appropriate policies.
In California, the SBC will be used to support a combination of existing, new, and emerging renewable technologies in the state. In Massachusetts, the fund will be used to create incentives for change in the marketplace, rather than to subsidize existing technologies. In addition, specific policies can be adopted to support developing green power markets. In California, a portion of the SBC funds will be used as customer rebates for green power purchases, as well as for consumer education. And in Texas, the Public Utility Commission is considering a rule that would require all electric utilities in the state to offer a green power tariff to their customers.