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Deregulated Electricity States: Where You Can Choose Your Provider in 2026
16 US states allow residential customers to choose their electricity supplier. This guide explains what deregulation means, which states qualify, how to switch, and what savings to expect.
What Is Electricity Deregulation?
In a deregulated electricity market, the state has separated electricity generation from delivery. You choose who generates your electricity (the supply portion of your bill), while your local utility continues to deliver it through the same wires, poles, and meters. The utility handles all maintenance, outages, and meter reading regardless of your supplier choice.
Think of it like choosing your phone carrier while keeping the same cell towers. You still get one bill, the same reliability, and the same service crews. The only thing that changes is who produces the electricity and what rate you pay for generation.
Which States Are Deregulated?
| State | Avg Rate | Official Comparison Tool |
|---|---|---|
| Connecticut | 29.92 cents | EnergizeCT |
| Delaware | 16.25 cents | DE Public Service Commission |
| Illinois | 17.10 cents | Plug In Illinois |
| Maine | 24.10 cents | Maine PUC |
| Maryland | 16.80 cents | MD Electric Choice |
| Massachusetts | 28.55 cents | MA Energy Switch |
| Michigan | 19.20 cents | MI Public Service Commission |
| Montana | 13.15 cents | Montana PSC |
| New Hampshire | 27.03 cents | NH PUC |
| New Jersey | 18.45 cents | NJ Board of Public Utilities |
| New York | 23.20 cents | NYSERDA |
| Ohio | 14.80 cents | Energy Choice Ohio |
| Pennsylvania | 16.40 cents | PA Power Switch |
| Rhode Island | 26.80 cents | RI PUC |
| Texas | 14.20 cents | Power to Choose |
| Virginia | 13.90 cents | VA State Corporation Commission |
Deregulated vs Regulated: Side by Side
Deregulated
- + Choose from multiple electricity suppliers
- + Competitive rates can lower your bill 15 to 30%
- + Choose 100% renewable plans if desired
- - Must actively shop and manage contracts
- - Variable rates carry spike risk
- - Auto-renewal traps can raise rates
Regulated
- + One utility handles everything
- + No contracts or shopping required
- + Rate changes require regulatory approval
- - No choice of electricity supplier
- - Cannot shop for a lower generation rate
- - Limited renewable energy plan options
How to Switch Providers
Visit your state's official comparison tool (listed above) and enter your ZIP code.
Compare rates per kWh from available suppliers. Focus on the supply rate, not estimated monthly bills.
Choose a plan and sign up online. You will need your utility account number from your latest bill.
Your new supplier notifies your utility. No action needed from you.
Your new rate appears on your next or second billing cycle. Zero service interruption.
The entire process takes 5 to 15 minutes online. Read our detailed comparison guide for tips on avoiding red flags and choosing the right plan type.
Common Misconceptions
Myth: "Switching means my power might go out"
Reality: No. The same utility delivers power through the same wires regardless of supplier. Switching providers has zero impact on reliability or outage response.
Myth: "The new company runs new wires to my house"
Reality: No. All delivery infrastructure stays the same. Only the supply (generation) source changes. Same poles, same wires, same meter.
Myth: "I have to pay two bills"
Reality: In most states, your utility sends a single consolidated bill that includes both the supply charge and the delivery charge. Dual billing exists in a few states for some providers but is rare.
Myth: "I will lose power during the switch"
Reality: No. The transition happens seamlessly in the billing system. Your electricity flows uninterrupted. The switch typically takes one to two billing cycles to appear.
Options for Regulated States
If your state is regulated, you cannot choose your electricity supplier. But that does not mean you are stuck with a high bill. Here are four strategies that work in every state.
Time-of-Use Rates
Save 20 to 40% by shifting usage to off-peak hours. Most utilities now offer TOU rate plans to residential customers.
Efficiency Improvements
Smart thermostat, LED lighting, air sealing, and phantom load reduction can save $400 to $800 per year.
Community Solar
Subscribe to a local solar farm and receive bill credits. Available in many regulated states with no rooftop installation needed. Typical savings: 5 to 15%.
Rooftop Solar
Install solar panels to generate your own electricity. Net metering credits your utility bill for excess production. Payback period: 6 to 10 years in most states.