Deregulated Electricity States
Complete guide to energy choice in 17 U.S. states + Washington DC where you can choose your electricity supplier
16
States + DC with Choice
115,200,000
Americans with Choice
7%
Average Savings Potential
What Is Electricity Deregulation?
How It Works
Unbundled Services
Traditional utilities handle generation, transmission, and distribution. Deregulated markets separate electricity supply (generation) from delivery (transmission & distribution), allowing customer choice for supply.
Competitive Supply
Multiple retail energy providers compete to offer electricity supply contracts with different rates, terms, and features like renewable energy options or price stability.
Regulated Delivery
Your local utility still maintains the power lines, handles outages, and delivers electricity to your home. This "delivery" portion remains regulated with stable, cost-based pricing.
Market Types
Full Deregulation (13 states)
All residential and business customers can choose their electricity supplier. Examples: Texas, Pennsylvania, Ohio, Illinois.
Partial Deregulation (3 states)
Limited customer choice, often with caps on participation or restrictions by customer size. Examples: New York (partial), Michigan (10% cap).
Municipal Choice (0 areas)
Local governments can aggregate customers and negotiate group rates, but individual choice may be limited. Popular in Ohio, Illinois, and Massachusetts.
Benefits and Risks of Energy Choice
Potential Benefits
- Lower Electricity RatesCompetition can drive down prices, with savings of 5-15% common in mature markets like Texas.
- Green Energy OptionsChoose suppliers offering 100% renewable energy, often at competitive prices.
- Rate Stability OptionsFixed-rate contracts protect against price volatility, providing budget certainty.
- Innovation and ServiceCompetitive markets often lead to better customer service, billing innovations, and energy management tools.
Potential Risks
- Marketing PressureAggressive door-to-door and telemarketing tactics, especially targeting elderly and low-income customers.
- Rate ComplexityVariable rates, teaser rates, and hidden fees can make actual costs difficult to compare.
- Contract TermsEarly termination fees, automatic renewals, and variable rate increases can lock customers into unfavorable deals.
- Market DysfunctionSome markets have failed to deliver promised savings, with customers paying more than regulated alternatives.
Deregulated States & Markets
15%
avg savings
Rate Comparison
Regulated: 11.89¢
Competitive: 10.89¢
Market Size
60
suppliers
Eligible Population:26,500,000
Regulator:Public Utility Commission of Texas
Key Features:
Complete customer choiceFixed and variable rates+2 more
12%
avg savings
Rate Comparison
Regulated: 14.45¢
Competitive: 13.34¢
Market Size
35
suppliers
Eligible Population:12,800,000
Regulator:Pennsylvania Public Utility Commission
Key Features:
Default service availableGreen energy programs+2 more
10%
avg savings
Rate Comparison
Regulated: 12.88¢
Competitive: 11.98¢
Market Size
25
suppliers
Eligible Population:11,700,000
Regulator:Public Utilities Commission of Ohio
Key Features:
Standard Choice Offer (SCO)Percentage of Income Payment Plan+2 more
9%
avg savings
Rate Comparison
Regulated: 14.45¢
Competitive: 13.67¢
Market Size
22
suppliers
Eligible Population:6,100,000
Regulator:Public Service Commission
Key Features:
Standard offer serviceMunicipal and county aggregation+2 more
8%
avg savings
Rate Comparison
Regulated: 14.56¢
Competitive: 13.98¢
Market Size
20
suppliers
Eligible Population:12,700,000
Regulator:Illinois Commerce Commission
Key Features:
ComEd and Ameren territoriesMunicipal aggregation programs+2 more
8%
avg savings
Rate Comparison
Regulated: 12.89¢
Competitive: 12.34¢
Market Size
15
suppliers
Eligible Population:4,500,000
Regulator:Public Service Commission
Key Features:
10% choice capUtility rate option available+2 more
7%
avg savings
Rate Comparison
Regulated: 15.67¢
Competitive: 14.89¢
Market Size
18
suppliers
Eligible Population:9,300,000
Regulator:Board of Public Utilities
Key Features:
Basic generation serviceGovernment aggregation+2 more
7%
avg savings
Rate Comparison
Regulated: 14.45¢
Competitive: 13.89¢
Market Size
12
suppliers
Eligible Population:700,000
Regulator:Public Service Commission
Key Features:
Standard offer serviceCommunity renewable energy+2 more
6%
avg savings
Rate Comparison
Regulated: 21.34¢
Competitive: 20.67¢
Market Size
15
suppliers
Eligible Population:6,900,000
Regulator:Department of Public Utilities
Key Features:
Green communities programBasic service protection+2 more
6%
avg savings
Rate Comparison
Regulated: 13.56¢
Competitive: 12.89¢
Market Size
10
suppliers
Eligible Population:1,000,000
Regulator:Public Service Commission
Key Features:
Standard offer serviceGreen energy options+2 more
5%
avg savings
Rate Comparison
Regulated: 20.89¢
Competitive: 20.23¢
Market Size
12
suppliers
Eligible Population:3,600,000
Regulator:Public Utilities Regulatory Authority
Key Features:
Standard service optionGreen energy programs+2 more
5%
avg savings
Rate Comparison
Regulated: 11.34¢
Competitive: 10.98¢
Market Size
8
suppliers
Eligible Population:500,000
Regulator:Public Service Commission
Key Features:
Large customer choice onlyTransition rate protection+2 more
4%
avg savings
Rate Comparison
Regulated: 19.87¢
Competitive: 19.34¢
Market Size
8
suppliers
Eligible Population:1,400,000
Regulator:Public Utilities Commission
Key Features:
Default energy serviceNet energy metering+2 more
4%
avg savings
Rate Comparison
Regulated: 17.89¢
Competitive: 17.56¢
Market Size
25
suppliers
Eligible Population:15,000,000
Regulator:Public Service Commission
Key Features:
Utility default serviceNYISO wholesale market+2 more
3%
avg savings
Rate Comparison
Regulated: 18.45¢
Competitive: 18.23¢
Market Size
6
suppliers
Eligible Population:1,400,000
Regulator:Public Utilities Commission
Key Features:
Standard offer serviceGreen power options+2 more
2%
avg savings
Rate Comparison
Regulated: 21.34¢
Competitive: 21.18¢
Market Size
5
suppliers
Eligible Population:1,100,000
Regulator:Public Utilities Commission
Key Features:
Standard offer serviceRenewable energy standard+2 more
How to Choose an Electricity Supplier
Research Phase
- 1Check Your Current RateReview recent bills to understand your current supply rate and delivery charges. Know your baseline before shopping.
- 2Use Official WebsitesStart with your state's official comparison website (PowerToChoose.org in Texas, etc.) to see licensed suppliers and current offers.
- 3Compare Total CostsLook beyond the advertised rate to monthly fees, cancellation charges, and contract terms. Calculate total annual cost.
Decision Phase
- 4Read the Fine PrintUnderstand rate changes, automatic renewal terms, and cancellation procedures before signing any contract.
- 5Avoid Door-to-Door SalesNever sign up with door-to-door or telemarketing sales. Research suppliers independently and sign up directly or through official websites.
- 6Monitor and ReviewSet calendar reminders for contract end dates, review bills monthly, and be prepared to switch if rates increase.
⚠️ Red Flags to Avoid
- • Door-to-door or high-pressure phone sales
- • Requests for immediate decision or payment
- • Claims of "government programs" or "free electricity"
- • Vague contract terms or refusal to provide written details
- • Variable rates without caps or limits
- • High cancellation fees or automatic renewals
- • Suppliers not licensed in your state
- • Promises that seem too good to be true
Market Performance by State
| State | Market Type | Regulated Rate | Competitive Rate | Savings % | Suppliers |
|---|---|---|---|---|---|
| Texas | Full | 11.89¢ | 10.89¢ | +8.4% | 60 |
| Pennsylvania | Full | 14.45¢ | 13.34¢ | +7.7% | 35 |
| Ohio | Full | 12.88¢ | 11.98¢ | +7.0% | 25 |
| Maryland | Full | 14.45¢ | 13.67¢ | +5.4% | 22 |
| Illinois | Full | 14.56¢ | 13.98¢ | +4.0% | 20 |
| Michigan | Partial | 12.89¢ | 12.34¢ | +4.3% | 15 |
| New Jersey | Full | 15.67¢ | 14.89¢ | +5.0% | 18 |
| District of Columbia | Full | 14.45¢ | 13.89¢ | +3.9% | 12 |
| Massachusetts | Full | 21.34¢ | 20.67¢ | +3.1% | 15 |
| Delaware | Full | 13.56¢ | 12.89¢ | +4.9% | 10 |
| Connecticut | Full | 20.89¢ | 20.23¢ | +3.2% | 12 |
| Montana | Partial | 11.34¢ | 10.98¢ | +3.2% | 8 |
| New Hampshire | Full | 19.87¢ | 19.34¢ | +2.7% | 8 |
| New York | Partial | 17.89¢ | 17.56¢ | +1.8% | 25 |
| Maine | Full | 18.45¢ | 18.23¢ | +1.2% | 6 |
| Rhode Island | Full | 21.34¢ | 21.18¢ | +0.7% | 5 |