Gas & Electricity Deregulation by State
Energy deregulation varies by state. Many states have deregulated since the first wave of energy deregulation in the 1990s. Below, you’ll find a list of states that have deregulated natural gas and electricity choices for residential consumers. From here, you can learn more about how their markets work, review retail electric suppliers and browse plans that we recommend to lower your electric bill.
What States Have Residential Electricity and Natural Gas Deregulation?
Slightly over half of the states in the United States are currently involved in some sort of energy deregulation.
New to deregulation? You can find more information on the basics of deregulation in our other content.
But energy deregulation means that you have a choice in your electricity and natural gas supply. You don’t have to buy your energy from the regulated utility in your area. This gives you options. You can choose a fixed rate plan, a renewable energy plan, a plan with free electricity at certain times, or even a pay-as-you go plan.
Some states have deregulated natural gas only, others electricity only and others have chosen to open both markets. A few such as Nevada and Florida are considering deregulation as a potential future move.
This is how the states currently break down on the issue of deregulation for residential customers:
States with Deregulated Residential Electricity
- Connecticut
- Delaware
- Maine
- Massachusetts
- New Hampshire
- Texas (In Texas you MUST choose a supplier. The local utility can not provide your electricity supply.)
States with Deregulated Electricity and Natural Gas
- Illinois
- Maryland
- Massachusetts
- Michigan Gas
- New Jersey
- New York
- Ohio Electricity
- Ohio Natural Gas
- Pennsylvania
- Rhode Island
- Washington, DC
States with Deregulated Natural Gas
- California
- Colorado
- Florida
- Georgia
- Indiana
- Kentucky
- Montana
- Nebraska
- New Mexico
- South Dakota
- Virginia
- West Virginia
- Wyoming
If your state is not listed, contact your local utility company to find out about natural gas and electricity choice.
How do I find an Electric Company Near Me?
It’s easy to figure out if your local area is deregulated. You can use ElectricityPlans.com to look up the electricity plans available to your zip code in deregulated states served by this site. If none are listed, you’ll likely have to stick with your local utility, at least for now.
If you live in a deregulated area, you can shop for your electricity company. Here’s how to find an electricity company in your area.
The Pros and Cons of Energy Deregulation
States began deregulating their energy markets about 30 years ago to encourage competition, keep down rates and give residents and businesses a choice.
Deregulation was proposed on a federal level in the late 1970s, and just under 20 years later, the first states designed markets where customers could select between the utility company and an alternative private energy supplier. Texas took this idea a step further, requiring residents and businesses to obtain power through a retail electric supplier, except in a handful of markets.
As a result, how you obtain power varies based on the state where you live. Now about three decades into energy deregulation, some trends have emerged:
- Deregulation breaks up the monopolies utility companies place on their communities. However, customers often don’t shop around, which increases the average electric bill in deregulated markets.
- Competition means a choice of plans and often the option to drop an energy supplier that isn’t working for you. Yet, the number of suppliers, plans and deals has proved to be overwhelming, and you won’t always find complete, accurate information through the state’s marketplace website. That’s why we created ElectricityPlans.com.
- If you’re working within a limited budget, electricity choice means you’re not stuck with the utility company’s offerings. You can secure a lower, fixed rate or take advantage of free nights and weekends, but you also need to shop around and read the fine print.
- If you’re making greener choices, retail electric companies tell you where your power is sourced from and even offer 100% renewable plans using solar, wind, geothermal heat or another less-traditional source.
- While deregulation is said to spur innovation and encourage investment in renewable energy, utility companies in these markets often don’t have the funds to upgrade or maintain their grids. This pattern increases outage rates.
- Customer service becomes a priority. In deregulated markets, retail electric providers offer multiple bill pay options and ways to speak with a representative.
How Do I Shop for Electricity?
Once you have identified that you are in a deregulated area and can shop for electricity, there are a number of things to think about:
- How much electricity do I use?
- Should I go short term or long term for my electricity contract?
- Is there a deposit to start my electricity service?
- Are there renewable energy options to go green without installing solar?
- How do I compare the different electricity suppliers in my area?
If these are some of the questions you are asking yourself, we’ve got the answers for you.
It’s a 10 minute read and will answer The Basics: How to Shop for an Electricity Plan.
Then, start shopping!
Shop for Connecticut Electricity
Shop for Pennsylvania Electricity
Reference: http://competitiveenergy.org/consumer-tools/state-by-state-links/
About Kelly Bedrich
Kelly Bedrich co-founded ElectricityPlans in 2016 with the goal of simplifying the complicated process of buying energy. As president and chief technology officer, Kelly keeps our development team focused on providing a user-friendly website. When not reading the latest on technology and finance, Kelly enjoys celebrating Taco Tuesday, listening to live music at local venues, and hiking.