"I switched suppliers, so my utility is out of my life." Not even close.
Switching suppliers in a retail-choice state changes one line on your bill. It does not change who owns the wires, who reads the meter, who restores your power after an outage, who you call when something is wrong, who handles your billing platform in most states, or who collects 50 to 60% of your monthly payment. All of those still belong to your regulated utility.
This is the most consequential and least communicated fact about US retail competition. Door-to-door sales scripts (and a lot of supplier marketing) imply you are "switching utilities". You are not. You cannot switch utilities. The utility is a regulated monopoly assigned to your address. The only thing you can switch is which company's name appears on the supply line of the bill the utility sends you.
Two practical consequences. First, your utility is still your single point of contact for everything that matters operationally: outages, meter, hazards, equipment, restoration timelines, dangerous wires. Save the utility's phone number; do not save the supplier's for these. Second, the supplier only controls the shoppable supply portion (~40-50% of the bill). The other ~50-60% is the same whether you switch or not, so any savings claim should always be benchmarked against the supply portion alone, not the whole bill.
The rest of this guide is the function-by-function side-by-side. Read carefully if you are about to make a switch.
Three roles in every retail-choice US bill.
The utility, the alternate supplier and (in some states) the wholesale market operator. Each handles one slice. None overlap.
Utility (TDU / LDC / IOU)
Owns wires, transformers, substations, meter. Reads meter. Restores outages. Maintains poles. Handles hazards. Bills you for delivery (and, in most states, also handles consolidated billing for the supplier's charges). Regulated monopoly; cannot be switched. Approved by state PUC.
Alternate supplier (REP / ESCO / ARES / EGS)
Sells you the kWh themselves. Contracts for wholesale supply, hedges price risk, sets your rate (fixed, variable, indexed, green, etc.). Does not touch wires, meter or outages. Can be switched at any time. Licensed by state PUC; subject to consumer-protection rules.
ISO/RTO (wholesale operator)
Runs the wholesale market where suppliers and utility-default-service buyers procure the actual electricity. PJM, NYISO, ISO-NE, MISO, ERCOT, CAISO, SPP. No retail relationship. The auction it runs determines what your supplier or your utility pays for kWh; that cost flows through to your bill.
The detail every salesperson skips. In a vertically-integrated state (most of the South, Mountain West, Pacific Northwest, Nebraska, Tennessee) all three roles collapse into one company. Your utility generates the kWh, owns the wires, runs the customer relationship, and there is no separate ISO market (or only a limited one). You cannot pick a supplier because there is no separate supplier role. This is half the country. The supplier-vs-utility conversation only applies in the 18 retail-choice states plus DC.
What the alternate supplier is called in each retail-choice state.
Same concept, different label. Source: each state PUC site, May 2026.
| State | Supplier term | Utility term | Bill format |
|---|---|---|---|
| Texas (ERCOT) | REP (Retail Electric Provider) | TDU (Transmission and Distribution Utility) | REP bills you; TDU charge passed through |
| Pennsylvania | EGS (Electric Generation Supplier) | EDC (Electric Distribution Company) | Consolidated (utility bills); dual optional |
| New York | ESCO (Energy Services Company) | LDC (Local Distribution Company) / utility | Consolidated (utility bills); dual optional |
| Illinois | ARES (Alternative Retail Electric Supplier) | Utility (ComEd, Ameren) | Consolidated (utility bills) |
| Ohio | CRES (Competitive Retail Electric Service) | Electric Distribution Utility (EDU) | Consolidated (utility bills); dual optional |
| Maryland | Supplier (licensed by PSC) | Utility (BGE, Pepco, Delmarva, Potomac Edison) | Consolidated (utility bills); dual optional |
| Massachusetts | Competitive supplier (licensed by DPU) | Utility (Eversource, National Grid, Unitil) | Consolidated (utility bills) |
| New Jersey | TPS (Third Party Supplier) | EDC (Electric Distribution Company) | Consolidated (utility bills); dual optional |
The terminology differs but the structure is identical: regulated utility owns wires + meter + outages; competitive supplier sells kWh. Texas is the only state where the supplier (REP) routinely sends its own bill; everywhere else the utility consolidates.
Function by function: utility vs alternate supplier.
If you are about to switch, this is the table to memorize. Source: state PUC consumer-shopping guides cross-referenced May 2026.
A Outage and restoration: UTILITY only
The supplier has no role in outage restoration. Your utility owns the wires, dispatches the crews and sets the restoration timeline. Outage reporting goes to the utility number, always.
B Meter and AMI: UTILITY only
Meter installation, swaps, smart-meter (AMI) opt-out, accuracy disputes, theft investigations: all utility. The supplier never accesses your meter and has no role in usage measurement.
C Billing: UTILITY (mostly), SUPPLIER (Texas)
In PA, OH, IL, MD, NJ, MA and most of NY the utility sends one consolidated bill with both delivery and supply charges. In Texas (ERCOT) the REP sends its own bill and pays the TDU behind the scenes. Some states allow dual billing where each party bills separately.
D Supply rate (¢/kWh): SUPPLIER (if you switched), UTILITY (if default)
The rate per kWh is the only line you actually shop. If you switched, your contract with the supplier governs. If you stayed on default, your state PUC sets the price-to-compare through utility auctions. Either way, the rate covers 40 to 50% of the bill, not 100%.
E Delivery charge: UTILITY only
Distribution charge, transmission charge, customer charge, demand charge (for some plans): all utility. Regulated by state PUC. Identical regardless of which supplier you pick. ~35 to 45% of the bill.
F POLR (Provider of Last Resort): UTILITY
If your supplier goes bankrupt, drops you or is suspended by the PUC, you automatically transfer back to utility default service (or a state-designated POLR). Service does not stop. You receive a notice within days. POLR rates often carry a premium versus normal default service.
The pattern: the utility owns everything operational, the supplier owns the contract for the kWh. If something physical happens (no power, sparking line, scheduled maintenance, meter dispute) it is a utility question. If something contractual happens (rate, billing period, renewal, contract terms) it is a supplier question.
Who is liable, and who you complain to.
Each function maps to a specific complaint channel. Pick the right one and you save weeks.
From voltage event
Utility (owns wires + transformer). File claim with utility customer service. State PUC if denied. Supplier has no role.
From supplier
Supplier first (call, email, written). State PUC consumer-services if not resolved in 30 days. Save all correspondence.
Switched without consent
FTC 3-day cooling-off rule covers cancellation. State PUC enforces anti-slamming rules; supplier license is at risk. FTC.
Suspected error
Utility (owns meter). Request meter test (often free first request). Compare AMI hourly data if available. Supplier has no role.
Three liability rules nobody tells you
- A Utility outage tariffs cap liability sharply. Most state PUC-approved utility tariffs limit utility liability for outage damage to consequential losses only and exclude appliance-burnout claims unless the utility is at fault for a specific event. Read your utility's tariff if you have a claim.
- B Supplier bankruptcy is your supplier's problem, not yours. If your supplier fails, service continues; you transfer to utility default or POLR. You owe nothing extra for the transition. Any unpaid balance to the bankrupt supplier becomes a claim in their bankruptcy estate (usually unrecoverable).
- C Door-to-door cancellation is a federal right. The FTC 3-day cooling-off rule applies to any door-to-door sale over $25, including energy supply. You can cancel in writing with no penalty. Ohio extends this to 7 days. Mark the date on the contract and act inside the window if you have second thoughts.
Why "switching suppliers" hits a smaller portion of the bill than the pitch suggests.
Four reasons the utility/supplier split bounds what a supplier change can ever do for your bill.
Supply is now under half the bill in most states
In 1998 supply was ~60% of a residential bill. In 2026 it is 40 to 50% in most retail-choice states, lower in some (Maryland after the 2024-2025 PJM auctions). Delivery, public-benefit riders, taxes and policy charges fill the rest. So a 15% supply discount becomes 6 to 8% off the all-in bill before any other adjustment.
Supplier acquisition cost lives inside your rate
Suppliers pay door-to-door agents, call centers and marketing platforms to win you. Those costs go straight into the rate they need to break even. Utility default-service procurement has no equivalent acquisition cost; it is a pass-through of competitive wholesale auctions. NY and IL studies have repeatedly attributed most of the "shoppers paid more" finding to this gap.
Renewal terms are the trap, not the headline rate
Most fixed-rate retail contracts auto-renew to a variable rate (or a much higher fixed rate) unless you cancel within the notice window. The supplier sends one notice, usually by email, often two months ahead. Miss it and the next bill is the disappointing one. Default-service customers have no contract and no expiration to manage.
You still get billed by the utility, even when you switched
In most states (PA, OH, IL, MD, NJ, MA, NY) the utility sends one consolidated bill with both lines. So even after you switch, the utility brand is still on every envelope, the utility is still your customer-service first call, and your utility billing platform still tracks your usage history. The supplier is largely invisible except for the supply rate line.
The supplier/utility split is one of the most consumer-protective features of US retail-choice rules: it guarantees you still have a regulated entity responsible for power restoration, meter maintenance and last-resort service even when the supply market goes sideways. It also bounds how much any supplier switch can ever change your bill. Both facts are true at once.
Six concrete steps before you switch (or stay).
Save your utility outage number, not the supplier
Phone you call when the lights go out, the wires arc, or a tree falls on a line: utility, always. Put the number in your phone contacts now. Supplier number is only useful for billing disputes.
Find your price-to-compare
Pull last month's bill, locate the price-to-compare (PTC) or default-service rate. Write it down. Never compare a supplier offer against your "all-in" rate; compare it against the PTC on the supply line.
Use your state's official shopping site
Texas Power to Choose, PA PA PUC, OH Energy Choice Ohio, IL Plug In Illinois, NY NY DPS. Avoid commercial comparison sites that take a fee from suppliers.
Read the renewal clause before signing
Look specifically for: (a) the auto-renewal language; (b) the notice window (often 30-45 days); (c) the rate you renew at (often variable-rate, which is the trap). If you cannot find these in the contract, do not sign.
Reject any door-to-door cold call
Doorstep sales are the single largest source of complaints at every state PUC consumer-services division. If you want to switch, you can do it yourself online in ten minutes via the state shopping site. The FTC 3-day cooling-off rule gives you an out if you do sign at the door.
In a regulated state, focus on the rate case
If you live in NC, SC, GA, AL, MS, FL, ID, UT, WA, OR, NE, TN you have no alternate supplier option. The only lever is your utility's next rate case at the state PUC; consumer-advocate offices (NC Public Staff, GA UCO, OCA in OH/IN/PA) take public comments and frequently testify.
Common questions about alternate suppliers vs utilities.
The utility owns the poles, wires, transformers and the meter. It delivers the electricity (or gas) to your home, reads the meter, restores power after outages and bills you for delivery. The alternate supplier (also called retail electricity provider, ESCO, ARES, EGS or REP depending on the state) only sells you the kWh themselves. The supplier never touches a wire, never restores an outage and (in many states) never sends you a separate bill. The single most important point: in a retail-choice state, your utility is still 50 to 60% of your bill and still controls everything except which company's name appears on the supply line.
Always your utility. The supplier you chose has no role in outage restoration. In every retail-choice state the utility (also called the TDU in TX, LDC for gas) owns and operates the distribution wires and is the sole entity responsible for restoring service. Putting a different supplier name on your bill does not change who you call. Save your utility's outage number now: Oncor 888-313-4747, ComEd 800-EDISON1, Con Edison 800-752-6633, PSEG NJ 800-436-PSEG, BGE 800-685-0123, PECO 800-841-4141, Eversource 800-286-2000.
Your utility, always. The meter is a regulated piece of infrastructure on the side of your house; the alternate supplier has no access to it and no role in maintaining it. Smart-meter rollouts (AMI), meter swaps, meter readings, meter testing, meter accuracy disputes: all go through your utility, regardless of which supplier sells you the kWh.
Most US retail-choice states default to consolidated billing: the utility sends one bill containing both its delivery charges and your supplier's supply charges, then remits the supply portion to the supplier. This is the default in PA, OH, IL, MD, NJ, MA and most of NY. Some states (and some suppliers in those states) offer dual billing where you receive two separate bills, one from the utility and one from the supplier. Texas is the major exception: in ERCOT-grid territory most REPs handle billing themselves (the supplier sends the bill; the TDU only charges the REP behind the scenes).
No. By federal and state law the utility is the regulated, monopoly wires provider; it must serve every customer in its territory regardless of which supplier they pick. If your supplier goes out of business, drops you for non-payment, or fails to renew, you automatically return to "Provider of Last Resort" (POLR) status with your utility. There is no service interruption. This is one of the most consumer-protective features of US retail-choice rules.
You are seamlessly transferred to your utility's default service (or to a state-designated Provider of Last Resort). Service does not stop. You receive a notice from the utility within days. The price may be different (usually higher, because POLR rates often carry a premium). Multiple Texas REPs collapsed during Winter Storm Uri in February 2021; every customer transferred without losing power. The same happened to several Pennsylvania EGSs after the 2014 polar vortex.
In most of the South, Pacific Northwest, Mountain West, Nebraska, Tennessee and the Dakotas there is no alternate supplier option. The vertically-integrated utility owns the generation, the wires and the customer relationship. You cannot pick a different supplier. The only consumer levers are the state PUC rate-case process and the utility's own optional time-of-use, renewable-credit or pre-paid plans. Source: FERC OATT reform reference.
Depends on the state. Texas (ERCOT): shopping is mandatory; use Power to Choose and pick a fixed-rate plan matched to your usage. Pennsylvania, Ohio, Maryland, New Jersey, Massachusetts: shop only if you can beat the price-to-compare by at least 5% on a fixed-rate term with no early-termination fee. Default service is usually competitive. New York, Illinois: the regulatory environment now requires guaranteed savings for ESCO/ARES products; check municipal aggregation first. All other states: there is no alternate supplier option. Engage the rate case at your PUC instead.
Keep learning about US energy markets
What is a wholesale electricity market
Seven US ISO/RTOs, marginal pricing, capacity auctions and what moves your bill.
Deregulated states map
State-by-state status of electricity and gas retail choice in the US.
Introduction to competition
PURPA, EPAct 1992, FERC Orders 888, 889, 2000, 2222.
How liberalization affects you
What retail choice actually means on a residential bill, state by state.
Deregulation and the environment
Did wholesale competition help or hurt the energy transition? Mixed answer.
Incumbent electricity suppliers
The legacy utilities that own the wires and provide default supply.
Who regulates US energy?
FERC, state PUCs, consumer advocates and where their jurisdictions meet.
Electricity prices per kWh
EIA-verified state-by-state residential prices, May 2026.
Texas energy hub
ERCOT REPs, TDUs, rate plans and shopping rules.
New York: 1998 to 2026
NYISO, the Reset Order and the $50M April 2026 ESCO settlement.
Illinois: ComEd, Ameren and PJM
ARES vs municipal aggregation, and the PJM 2026/27 auction impact.
Understanding your bill
Line-by-line decoder for residential US electricity and gas bills.