List of Energy Deregulated States in the United States

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Do you have the power of choice? Find out about energy market deregulation in your state and whether you are able to choose your electricity or gas supplier.


What is Energy Deregulation?

Deregulation means that you have a choice of company that provides your electricity and natural gas. It allows you to shop for a provider for your energy supply, just like you would for phone or internet service.

A Brief History of Deregulation in the United States

In the past, utilities were responsible for procuring, delivering, and selling electricity to all of the customers within their service territory. In most urban areas they operated as regulated, "vertically-integrated monopolies". Because the costs to build energy infrastructure were so high, economies of scale meant that a regulated, monopolistic system for energy distribution was most appropriate when electricity and gas networks first developed.

However, over time this began to change. When legislators passed the Public Utilities Regulatory Policies Act (PURPA) in 1978, independent power producers (IPPs) were allowed to operate and compete alongside utilities in selling energy on the wholesale market. Later, the 1992 Energy Policy Act opened the electricity market further by allowing all types of electricity suppliers (not just utilities) access to the US power transmission grid.

As a result, starting in the 1990s, many states began to restructure their energy markets, separating energy production from delivery. This opened up the opportunity for choice in energy supply options for residential consumers.

Energy Deregulation Status, State-by-State

Today, a choice of electricity and/or natural gas supplier exists for residential customers in 25 states across the United States. Find out whether energy choice exists in your state in the table below.

Energy Choice Status in the United States
State Electricity Gas
Alabama No electricity choice for residential customers No gas choice for residential customers
Alaska No electricity choice for residential customers No gas choice for residential customers
Arizona No electricity choice for residential customers No gas choice for residential customers
Arkansas No electricity choice for residential customers No gas choice for residential customers
California No electricity choice for residential customers gas-deregulatedNatural gas choice is available for residential and small commercial customers in the Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Gas (SoCalGas) service territories.
Colorado No electricity choice for residential customers gas-deregulatedNatural gas choice is available according to Colorado law, but is not yet offered in any utility service areas.
Connecticut electricity-deregulatedResidential and commercial customers in the Connecticut Power & Light and United Illuminating utility service territories No gas choice for residential customers
Delaware electricity-deregulatedResidential and commercial customers in the Delmarva utility service territory and in the Delaware Electric Cooperative service territory have a choice of electricity supplier. No gas choice for residential customers
District of Columbia electricity-deregulatedResidential customers in DC have a choice of electricity provider. PEPCO is the utility that covers DC. gas-deregulatedResidential customers in Washington Gas Light's service territory, which covers the whole district, have a choice of natural gas supplier.
Florida No electricity choice for residential customers gas-deregulatedSome natural gas competitive choice for residential customers at Central Florida Gas.
Georgia No electricity choice for residential customers gas-deregulatedNatural gas choice is available for residential and commercial customers in the AGL utility service territory.
Hawaii No electricity choice for residential customers No gas choice for residential customers
Idaho No electricity choice for residential customers No gas choice for residential customers
Illinois electricity-deregulatedResidential electricity customers in the Ameren and ComEd utility service territories have a choice of electric supplier. gas-deregulatedNatural gas choice is available for residential and commercial customers in the Nicor, North Shore, and Peoples Gas utility service territories.>
Indiana No electricity choice for residential customers Natural gas choice is available for residential and commercial customers in NIPSCO's service territory.
Iowa No electricity choice for residential customers No gas choice for residential customers
Kansas No electricity choice for residential customers No gas choice for residential customers
Kentucky No electricity choice for residential customers gas-deregulatedNatural gas choice is available for residential and small commercial customers in the Columbia Gas utility service territory.
Louisiana No electricity choice for residential customers No gas choice for residential customers
Maine electricity-deregulatedResidential electricity customers in Emera and Central Maine Power's service territories have a choice of electric supplier. No gas choice for residential customers
Maryland electricity-deregulatedResidential electricity customers in the Baltimore Gas and Electric (BGE), Choptank Electric Cooperative, Delmarva Power and Light, Potomac Edison, Potomac Electric Power Company (Pepco), and SMECO utilities' service territories have a choice of electric supplier. gas-deregulatedNatural gas choice is available for residential and small commercial customers in Baltimore Gas and Electric Company's (BGE) and Washington Gas Light's (WGL) service territories.
Massachusets electricity-deregulatedResidential electricity customers in the service areas for Eversource (formally known as NSTAR and Western Massachusetts Electric Company), Fitchburg Gas and Electric, and National Grid have a choice of electric supplier. Natural gas choice is available but participation is currently limited.
Michigan electricity-deregulatedResidential electricity customers in the service areas for Consumers Energy and DTE Energy have a choice of electric supplier, but participation is capped at 10% of the utility’s previous year sales and there is currently a waiting list to be able to switch to an alternate supplier. gas-deregulatedResidential customers in Consumers Energy, DTE Energy, Michigan Gas Utilities, and SEMCO Energy Gas Company's service territories have a choice of gas supplier.
Minnesota No electricity choice for residential customers No electricity choice for residential customers
Mississippi No electricity choice for residential customers No electricity choice for residential customers
Missouri No electricity choice for residential customers No electricity choice for residential customers
Montana Electricity choice was introduced in the late 1990s, but as of 2007, customers with demand under 5,000 kWh/month can not choose a supplier. gas-deregulatedNatural gas choice is available for residential and small commercial consumers in the Northwestern Energy and Energy West Montana utility territories
Nebraska No electricity choice for residential customers gas-deregulatedNatural gas choice is available for residential and non-residential consumers in the SourceGas utility territory during a two-week annual selection period.
Nevada No electricity choice for residential customers No gas choice for residential customers
New Hampshire electricity-deregulatedResidential electricity customers in Public Service Company of New Hampshire (PSNH), Liberty, Unitil Energy Systems, Inc. (UES), and the New Hampshire Electric Cooperative, Inc.'s (NHEC) service territories have a choice of electric supplier. No gas choice for residential customers
New Jersey electricity-deregulatedResidential electricity customers in Atlantic City Electric, Jersey Central Power & Light, PSEG, and Rockland Electric's service territories have a choice of electric supplier. gas-deregulatedNatural gas choice is available for residential and non-residential consumers in the Elizabethtown Gas, New Jersey Natural Gas, PSEG, and South Jersey Gas utilities' territories.
New Mexico No electricity choice for residential customers (Suspended) Natural gas choice is available by law but participation is currently limited.
New York electricity-deregulatedResidential electricity customers in Central Hudson, Con Edison, NYSEG, National Grid, Orange & Rockland, and RG&E's service territories have a choice of electric supplier. gas-deregulatedNatural gas choice is available for residential and non-residential consumers in the Central Hudson, ConEd, Corning Natural Gas, National Grid (Keyspan Energy Delivery NY & LI, Niagra Mohawk), National Fuel, NYSEG, Orange & Rockland, RG&E, and St. Lawrence Natural Gas utilities' territories.
North Carolina No electricity choice for residential customers No gas choice for residential customers
North Dakota No electricity choice for residential customers No gas choice for residential customers
Ohio electricity-deregulatedResidential electricity customers in AEP Ohio, Dayton Power & Light, Duke Energy Ohio, and FirstEnergy's (Ohio Edison, The Illuminating Company, and Toledo Edison) service territories have a choice of electric supplier. gas-deregulatedNatural gas choice is available for residential and non-residential consumers in the Columbia Gas, Dominion East Ohio, Duke Energy, and Vectren Energy service territories.
Oklahoma No electricity choice for residential customers No gas choice for residential customers
Oregon No electricity choice for residential customers No gas choice for residential customers
Pennsylvania electricity-deregulatedResidential customers in Citizens’ Electric, Duquesne Light, Met-Ed, PECO Energy, Penelec, Penn Power, Pike County Light & Power, PPL Electric Utilities, UGI, Wellsboro Electric, and West Penn Power's service territories have a choice of electricity supplier. gas-deregulatedResidential customers in Columbia Gas, Peoples Natural Gas – Equitable Division, National Fuel Gas, PECO Gas, Peoples Natural Gas, Peoples TWP, Philadelphia Gas Works, UGI Utilities, UGI Central Penn Gas, and UGI Penn Natural Gas utility territories have a choice of natural gas supplier.
Rhode Island electricity-deregulatedResidential electricity customers in National Grid's service territory may choose a supplier. gas-deregulatedResidential customers in National Grid's service territory have a choice of natural gas supplier.
South Carolina No electricity choice for residential customers No gas choice for residential customers
South Dakota No electricity choice for residential customers Natural gas choice for residential customers is permitted by law, but participation is limited.
Tennessee No electricity choice for residential customers No gas choice for residential customers
Texas electricity-deregulatedResidential customers on the ERCOT grid, which encompasses the service territories for AEP Texas, CenterPoint Eergy, Oncor, Sharyland, and Texas New Mexico Power, must choose a retail electric provider in order to have service. No gas choice for residential customers
Utah No electricity choice for residential customers No gas choice for residential customers
Vermont No electricity choice for residential customers No gas choice for residential customers
Virginia No electricity choice for residential customers, unless the customer is seeking electricity from 100% renewable sources and cannot receive this option from their utility. gas-deregulatedResidential customers in the Columbia Gas and WGL utility territories may choose a natural gas supplier.
Washington No electricity choice for residential customers No gas choice for residential customers
West Virginia No electricity choice for residential customers gas-deregulatedResidential customers have the option of customer choice for their natural gas supply by law, but participation is limited.
Wisconsin No electricity choice for residential customers No gas choice for residential customers
Wyoming No electricity choice for residential customers (Suspended) gas-deregulatedResidential customers in SourceGas's service territory may choose their natural gas supplier.

Source

Find out moreFind out more about energy deregulation, including about the history of energy market deregulation in the US and more about how deregulation affects you.


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