Deregulated Electricity States (2026): Where You Can Shop for Lower Rates
18 US states plus DC allow residential customers to choose their electricity supplier. The other 32 states operate regulated utility monopolies. Updated April 2026.
19
Deregulated (incl. DC)
32
Regulated monopoly
87%
TX switching rate
$25-100
CPA per TX switch
Deregulated States: How to Shop
TexasSwitching: High
Mandatory retail choice in ERCOT territory. 100+ providers. 87% switching rate. Fixed plans from 11-13c/kWh.
Portal: PowerToChoose.org (PUCT)
PennsylvaniaSwitching: Medium
PA Power Switch portal. 35% switching rate. Constellation, Direct Energy, NRG, PPL alternatives available.
Portal: papowerswitch.com (PA PUC)
OhioSwitching: High
Apples to Apples comparison tool. 57% switching rate (includes government aggregation). AEP, Duke, FirstEnergy wires stay local.
Portal: energychoice.ohio.gov (PUCO)
IllinoisSwitching: Medium
PlugInIllinois portal. Municipal aggregation common in Chicago suburbs. ComEd / Ameren wires only.
Portal: pluginillinois.org (ICC)
New JerseySwitching: Medium
BGS auctions for default service. Competitive supply optional through NJBPU comparison tools.
Portal: njbpu.nj.gov (NJBPU)
New YorkSwitching: Low
ConEd and National Grid Upstate default; ESCOs available. Most NYers stay on default.
Portal: ny.gov/energy (NY PSC)
ConnecticutSwitching: Low
EnergizeCT portal. Eversource CT default; competitive supply available.
Portal: energizect.com
DelawareSwitching: Low
Delmarva Power default; competitive supply available through PSC.
Portal: depsc.delaware.gov
MaineSwitching: Low
CMP and Versant default; competitive supply available via MPUC.
Portal: maine.gov/mpuc
MarylandSwitching: Low
BGE, Pepco, Delmarva default; competitive supply optional.
Portal: energy.maryland.gov
MassachusettsSwitching: Low
Eversource and National Grid MA default; competitive supply optional via MassSave portal.
Portal: masssave.com (MA DPU)
New HampshireSwitching: Low
Eversource NH and Liberty Utilities default; competitive supply optional.
Portal: puc.nh.gov
Rhode IslandSwitching: Low
Rhode Island Energy default; competitive supply optional.
Portal: ripuc.ri.gov
MichiganSwitching: Very Low
Limited choice (10% customer cap). Mostly Consumers Energy and DTE regulated.
Portal: michigan.gov/mpsc
MontanaSwitching: Very Low
Limited choice - mostly NorthWestern Energy regulated.
Portal: psc.mt.gov
OregonSwitching: N/A (industrial)
Industrial-only choice. Residential choice not available.
Portal: oregon.gov/puc
VirginiaSwitching: Very Low
Limited choice - mostly Dominion Energy regulated monopoly.
Portal: scc.virginia.gov
DCSwitching: Low
Pepco default; competitive supply available.
Portal: dcpsc.org
How to Switch: 4-Step Guide
1
Read your bill
Find the supply/generation charge line item. This is what you are shopping for. The delivery/distribution charge stays with the local utility no matter who you choose.
2
Use your state portal
PowerToChoose.org (TX), papowerswitch.com (PA), energychoice.ohio.gov (OH). Compare fixed-rate plans apples-to-apples: supply rate in c/kWh, term, cancellation fee, renewable %.
3
Choose wisely
Fixed rate over variable. Match term to how long you plan to stay. Read the cancellation fee. Ignore the teaser-period pitch. 12-month fixed is usually the best balance.
4
Enroll online
Sign up with the retail provider directly. Your local utility handles the switch within 1-2 billing cycles with no service interruption. Your delivery utility does not change.
Regulated States: What You Can Do Instead
In regulated states, you cannot choose your electricity supplier. Options for reducing your bill include: time-of-use rate optimization (where available), energy efficiency upgrades, solar installation, and demand response programs offered by the utility.
TOU Rate Optimization
Where available (CA mandate, NY/MA optional), shift usage to off-peak and save $20-50/month.
Audit Your Usage
Use the bill calculator to understand which appliances drive your bill and where the best efficiency savings are.
Consider Solar
Especially in high-rate regulated states (CA, MA, FL, HI). At 32c/kWh in CA, solar pays back in 7-9 years.
Frequently Asked Questions
What does it mean to switch electricity providers?+
In deregulated states, electricity supply (the generation/production of electricity) and delivery (the local wires to your home) are separate. You can choose who produces your electricity from a competitive marketplace of retail providers. Your local utility still delivers the electricity and handles outages; only the energy supply portion of your bill changes. In Texas, the retail choice is mandatory. In other deregulated states, you can opt to stay with the default utility supply or choose a competitive supplier.
How much can I save by switching electricity providers?+
In Texas, switching to a competitive fixed-rate plan can save 10-25% vs the default Electricity Provider of Last Resort (POLR) rate, which is typically higher. In Pennsylvania and Ohio, savings of 5-15% are typical. In other deregulated states where most customers stay on default supply, the competitive market is less active and savings opportunities vary. Always compare the price-per-kWh (supply portion only) and watch for contract terms, cancellation fees, and teaser-rate structures.
What should I watch out for when shopping for electricity?+
Five common pitfalls: (1) Teaser rates that are cheap for 3 months then spike to market-variable pricing. (2) High cancellation fees ($50-$200) that eliminate savings if you need to move. (3) 'Green' plans with higher prices but no verified renewable certificates. (4) Variable-rate plans without caps that can spike in winter or summer. (5) Sign-up bonuses that appear to save money but are offset by a higher rate. Always compare the supply rate (c/kWh) on an apples-to-apples basis with your current supplier's supply rate.
Can I switch electricity providers in California?+
No - California is a regulated electricity market with IOU (investor-owned utility) monopolies: PG&E, SCE, and SDG&E. You cannot choose your electricity supplier. California does offer Community Choice Aggregation (CCAs) in many areas, which allows local governments to procure electricity on behalf of residents (often with higher renewable content), but the utility still delivers the power and sets the delivery rate. Within California, your options for bill reduction are TOU optimization, solar installation, energy efficiency, and demand response programs.