Disclosure of Electric Generating Mix
Some states require electricity retailers to disclose to their customers the mix of fuels they use to generate electricity. Some states require that retailers divulge emissions produced by those fuels as well. By learning which fuels or sources are used to generate electricity, consumers in a restructured market can make informed decisions about the energy and supplier they choose.
To assist consumers, some states have adopted a uniform disclosure form for all suppliers. This is meant to prevent different approaches to disclosing fuel mixes that could be confusing for consumers who want to compare.
Another component of the disclosure requirement can involve setting standards for what constitutes a green, or environmentally preferable, energy source. Certification of green resources prevents electricity retailers from marketing themselves as suppliers of green energy when only a small percentage of their fuel mix comes from renewable sources. To further educate consumers about the environmental costs of their energy consumption, some states have adopted a standard form to disclose air emissions produced by the generation of electricity.
A number of states included requirements for disclosure and certification of generation mixes and emissions as a part of restructuring legislation. However, some states that have not restructured have required disclosure of utility companies' power portfolios as a consumer education effort.
Arguments for Disclosure of Electricity Generating Mix
Educates consumers so they can make informed decisions about the energy and supplier they choose.
Sets standards that electric retailers must meet to market themselves as green energy suppliers.
Strengthens consumer confidence in the choices they make by having those standards in place.
Provides useful environmental data recording fuel mixes and levels of emissions.
Arguments against Disclosure of Electricity Generating Mix
Additional administrative burdens are placed on electricity retailers and regulators.
Could be construed as competitively unfair if municipal utilities or other market participants are not obligated to comply.
If a state has not implemented restructuring, utility companies might not see the value of providing the information.
For more information on states with disclosure policies, visit the Database of State Incentives for Renewable Energy (DSIRE).