"The utility handles the supply too. Just open service and you are done." Not in 18 states + DC.
In the 32 regulated US states, that sentence is correct. Your utility is also your supplier, you pay one bundled rate set by the state PUC and there is nothing to shop. One phone call, one bill, one rate.
In the 18 retail-choice states plus the District of Columbia, the two halves of the bill come from two different companies. The utility delivers and bills, but the kWh and therms themselves come from a competitive supplier you choose: a REP in Texas, an ESCO in New York, an ARES in Illinois, an "EGS" in Pennsylvania, a "TPS" in New Jersey, and so on.
The trap: if you open service and do not pick a supplier, the utility assigns you to default service, almost always the most expensive supply rate available in the state. New movers are auto-enrolled by default. The 7-to-30-day window after the account opens is the cheapest moment to pick a fixed-rate plan, because most suppliers run move-in promos and the utility has not yet locked you into a default-service quarterly cycle.
The next section walks through the 5 steps in order, then the state-by-state table shows you which side of the line you are on.
The 5-step start sequence
Do these in sequence and your first bill is the smallest one.
A 5-business-day runway is comfortable. The legal floor is 3 business days. Anything tighter and you lose leverage on the credit-check waiver and the move-in promo window.
Before you call
Find your delivery utility
Your ZIP code, not your supplier choice, decides which utility serves the new address. Use the utility directory by state to pull the right phone number. If two utilities share a county boundary, the street address breaks the tie.
3 business days minimum
Open the account
Call the utility, give them the move-in date, your full name, contact details and Social Security Number. The agent files the start request and confirms by SMS or email. Five business days is comfortable, three is the legal floor under most PUC service rules.
On the call
Pass or pay around the credit check
Most utilities run a soft credit pull. Pass it and the deposit is waived. Fail or skip it and expect $100 to $300 on electricity, similar on gas. A letter of credit from a previous utility, a co-signer or pre-paid service are the usual escape routes.
Deregulated states only
Pick a supplier within 7 days
Compare 3 fixed-rate offers via our supplier directory. Lock in a 6 to 12 month rate before the utility's default-service cycle picks you up. Skip step 4 entirely if you are in a regulated state.
Move day
Photograph the move-in meter read
Snap a clean photo of the kWh and therm displays when you turn the keys in the door. AMI meters read remotely but the phone photo is your only proof if the utility's first reading is disputed later.
Rule of thumb
5 business days comfortable. 3 days legal floor. The supplier window opens after step 2.
In retail-choice states, step 4 is on the clock. The utility needs 1 to 2 business days to push the new account into the state enrollment system before any supplier can claim it.
Sources: state PUC residential service rules + utility tariffs, May 2026.
State-by-state map
Utility vs supplier, by state.
The default-service program name and rate for each retail-choice state, plus the partial-choice states (Michigan and California). Rates are residential supply only, ¢ per kWh, May 2026.
| State | Utility (delivery) | Supplier (regulated or chosen) | Default-supplier name | Default rate (¢/kWh) | Where it ranks vs chosen plans |
|---|---|---|---|---|---|
| TX | Oncor, CenterPoint, AEP, TNMP | REP (chosen, ~120 licensed) | Provider of Last Resort (PoLR) | 18.4 | Among the most expensive plans in the market. |
| PA | PECO, PPL, Duquesne, FirstEnergy (Met-Ed / Penelec / Penn Power / West Penn) | EGS (chosen) | Price to Compare (PTC) | 11.8 | Resets every 3 to 6 months, usually well above the cheapest fixed offer. |
| OH | AEP Ohio, Duke, FirstEnergy (Ohio Edison / CEI / Toledo Edison), AES Ohio | CRES (chosen) | Standard Service Offer (SSO) | 11.5 | June 2025 SSO auction lifted rates >20% above the prior cycle. |
| IL | ComEd, Ameren Illinois | ARES (chosen) | Price to Compare (PTC) | 10.4 | ComEd default capacity charge jumped sharply in June 2025. |
| NY | Con Edison, National Grid, NYSEG, RG&E, Central Hudson, O&R, PSEG-LI | ESCO (chosen) | Default Service (utility supply) | 16.7 | Default sits near the middle, fixed ESCO plans can beat it once enrollment fees are netted. |
| NJ | PSE&G, JCP&L, Atlantic City Electric, Rockland Electric | TPS (chosen) | Basic Generation Service (BGS) | 13.7 | BGS reset June 2025 lifted residential supply by ~17%. |
| MA | Eversource, National Grid, Unitil | Competitive supplier (chosen) | Basic Service | 17.3 | Basic Service is the benchmark, only fixed deals signed in low-spot months tend to beat it. |
| CT | Eversource, United Illuminating | CT supplier (chosen) | Standard Service | 12.2 | January 2025 reset spiked Standard Service to record levels; rates have eased since. |
| RI | Rhode Island Energy | Nonregulated Power Producer (chosen) | Last Resort Service | 10.6 | Six-month resets, fixed offers typically cheaper for 12 of the past 18 months. |
| ME | CMP, Versant | CEP (chosen) | Standard Offer Service (SOS) | 11.2 | SOS is auctioned annually; usually mid-market. |
| NH | Eversource, Unitil, Liberty, NHEC | CEPS (chosen) | Default Energy Service | 13.9 | Resets every 6 months, often above the cheapest 12-month fixed. |
| MD | BGE, Pepco, Delmarva, Potomac Edison | MD supplier (chosen) | Standard Offer Service (SOS) | 11.9 | June 2025 reset raised SOS for all 4 utilities; chosen plans win on most ZIPs. |
| DE | Delmarva Power | DE supplier (chosen) | Standard Offer Service (SOS) | 11.1 | Mid-pack; fixed offers usually win by 1 to 2 ¢/kWh. |
| DC | Pepco | DC supplier (chosen) | Standard Offer Service (SOS) | 12.7 | Most expensive option on the comparison shopping board most months. |
| MI | DTE, Consumers Energy | AES (chosen, 10% cap) | Utility regulated supply | 20.1 | Choice is capped at 10% of load; default is the norm for almost all residential customers. |
| CA | PG&E, SCE, SDG&E | CCA (default in most cities) or ESP (chosen, limited) | Utility bundled service | 32.4 | CCA default usually 1 to 3 ¢/kWh cheaper than utility bundled, very few ESP options for residential. |
First-use acronyms in the table: REP, PoLR, EGS, CRES, SSO, ARES, ESCO, TPS, BGS, CEP, SOS, CEPS, AES, CCA, ESP. The full default-service trap mechanics are in the next section.
Why "doing nothing" is the most expensive option in 18 states.
If you open service in a retail-choice state and pick no supplier, the utility files you under default service. That sounds neutral, it is not. Four reasons why.
Auction-priced, with the risk passed to you
The utility procures default supply at short-term auction. It adds no margin on the kWh themselves, but it does add a "risk reconciliation" line item that bundles in hedging cost, bad-debt recovery and balancing-market exposure. You absorb every cent of that risk.
Resets every 3 to 6 months, winter is brutal
Pennsylvania's PTC resets quarterly, Ohio's SSO annually after a multi-tranche auction, New Jersey's BGS in June. Winter resets are the painful ones, the December cycle captures the highest forward prices of the year.
Newly-moved households are auto-enrolled
No paperwork is needed for default. The utility flips the switch the moment your account opens and you stay enrolled until you actively opt out. The first bill arrives 30 to 45 days later, by which point the move-in promo window has closed.
Opting out is free, always
The good news: the utility cannot charge an exit fee on default service. You can leave for a chosen supplier at any time, and the switch takes 1 to 2 billing cycles. The cost is the time you spent on default in the meantime, that is the real penalty.
Picking a supplier without getting burned.
A clean fixed-rate plan is cheaper than default service on most ZIPs, most months. The trick is reading the three numbers every legitimate contract must show.
| Line item | Default service | Chosen fixed-rate plan |
|---|---|---|
| Who sets the rate | Utility auction, every 3 to 6 months | You, locked at signup for 6 to 36 months |
| Predictability | Resets without notice on a public schedule | Same ¢/kWh every month until renewal |
| Move-in promo | None | 1 to 2 ¢/kWh off for the first 3 months on most suppliers |
| Exit fee | $0, opt out anytime | $0 to $200, waived on documented moves |
| Renewable supply | State mix (RPS-mandated minimum) | Up to 100% via a renewable rider, usually +1 to 2 ¢/kWh |
The three numbers
Every legitimate contract must show, in plain language:
Rate (¢/kWh)
The all-in supply rate, including any pass-through riders. Compare to the state default rate in the table above.
Term (months)
6, 12, 24 or 36 months. Lock long when forward markets are calm, short when they are spiking.
Early-termination fee
$0 to $200 in most states, mandatorily waived on a documented move in PA, NY, OH, IL and a growing list of others.
Anything more (a "service fee", an "enrollment bonus that vanishes", a variable rate after a fixed promo period) is a warning sign. Our bill explainer walks through every line of a real US power bill, and the door-to-door sales guide covers the federal 3-day cooling-off window that protects you against any pitched-on-the-doorstep contract.
What the utility asks for on the call.
Four pieces of information cover 95% of US utility start-of-service calls. Have them ready and the call lasts under 10 minutes.
Identity
Social Security Number
Required for the soft credit check. ITIN works in most states if you do not have an SSN.
Name
Full legal name
As it appears on your lease or deed. If two adults are on the lease, both can be on the account or just one of you.
Timing
Move-in date
The day power needs to be on. Pick the day before the moving truck if possible, so the lights are already live.
Address
Forwarding / billing address
Where paper bills should go. Some renters opt for the service address itself, some prefer a parent or P.O. Box for the first month.
What to write down during the call
A 30-second log on the back of an envelope saves you hours later if anything is disputed.
Account number
Created on the call, used for everything else.
Confirmation / reference ID
Quote it on any follow-up call.
Agent name + time
Calls are recorded, the timestamp pulls the recording in seconds.
Insider view
Four things most moving guides skip.
Each one is a real-money mistake we see in reader emails month after month.
Same-day supplier enrollment usually fails
The utility has to "create" the account, push a meter number to the state enrollment system and let it propagate. That takes 1 to 2 billing cycles before any supplier can claim the load. Open the utility account first, then enroll with a supplier within the first cycle, before the default-service auction picks you up.
Move-in promos cut 1 to 2 ¢/kWh off the first 3 months
Most retail suppliers offer a small introductory discount to verified new-mover addresses, partly because mover acquisition is cheap (you are already in shopping mode) and partly because the address is verifiable via the utility's start-of-service record. The post-promo rate is what really matters, calculate the blended average over the full term.
Renewable supply riders sit at +1 to 2 ¢/kWh
A 100% renewable plan is rarely the cheapest, expect a 1 to 2 ¢/kWh adder over the same supplier's standard plan. The right benchmark is the EPA Green Power Partnership reference: if the rider is below the green-tariff average for your state, it is fairly priced.
Bundled gas + electric is almost never cheaper
Suppliers that pitch a single dual-fuel contract usually mark up the cheaper of the two commodities to subsidize the headline rate on the other. Two best-in-class single-fuel contracts beat a bundle on most ZIPs. The only real bundle benefit is one statement instead of two, which is a workflow saving, not a financial one.
What to actually do
Six actions, in order.
The shortest version of the page. If you only do these six things, you will not get burned.
Find your delivery utility
Pull the right phone number from our state directory. ZIP code decides; supplier choice does not.
Open the account 3 to 5 days out
Give the utility 3 business days minimum. Confirm by SMS or email and save the reference number.
Compare 3 supplier offers
In retail-choice states, run 3 fixed-rate quotes via our supplier directory. Match rate, term, exit fee.
Choose a fixed rate of 6 months or more
Anything shorter and you hit a renewal before the move-in promo has paid for itself. 12 months is the most common sweet spot.
Confirm everything in writing
The supplier's welcome email is your contract record. Save the Customer Disclosure Statement PDF, it is the document the PUC asks for in a dispute.
Photograph the meter on move-in
A 5-second phone photo of the kWh and therm displays is your only proof if the first reading is later disputed by either the utility or your supplier.
Starting US utility service, in detail.
The legal floor in every regulated US utility is 3 business days of notice to open a residential account. The comfortable window is 5 to 7 business days, especially if a tech needs site access for a manual first read or to unlock the gas meter. Most utilities will book up to 30 days out, so the earliest you can call is the day you sign the lease or close on the house. Read our 30-day moving checklist for the full timeline.
The utility owns the wires, the meter and the pipes. They deliver the energy and bill you for it, and you cannot choose which utility serves your address, your ZIP code decides. The supplier is the company you choose for the kWh or therm itself in 18 retail-choice states plus DC. Your bill shows both, usually split into a "delivery" section (utility) and a "supply" section (default or chosen supplier). The bill explainer walks through every line.
If you open a utility account in a deregulated state and do nothing else, you are auto-assigned to default service (called Provider of Last Resort in Texas, Price to Compare in PA and OH, Standard Offer Service in MD, DE and ME, Default Service in NY). The utility buys the kWh at short-term auction, adds a risk reconciliation charge and passes it on. Because the utility never set out to compete on price, default service is almost always the most expensive supply rate available. The fix is to pick a fixed-rate plan during the 7-to-30-day move-in window before the first auction cycle closes.
Only if you fail or skip the credit check. Most utilities run a soft credit pull when you call to open service. If your score is high enough the deposit is waived. If not, expect $100 to $300 on electricity and a similar range on gas. The deposit comes back, with state-PUC interest, after about 12 months of on-time payment or on the final bill when you move out. See the deposit refund guide.
Usually not on the same day. The utility has to create the account, assign a meter number and push it to the state-wide enrollment system before any supplier can claim the load. That typically takes 1 to 2 business days. Open the utility account first, then enroll with a supplier within the first billing cycle, before the default-service auction locks you in.
Often, yes, but check the math past the promo period. Most retail suppliers offer 1 to 2 ¢/kWh off the standard rate for the first 3 months on a verified new-mover address. After that the rate steps up to the contract rate, so the average over the term is what matters. Avoid plans where the post-promo rate is variable or "indexed to market", a fixed rate for the rest of the term is the safer choice.
No. In 32 regulated states, your utility is both the delivery company and the supplier. You pay one bundled rate set by the state PUC and there is nothing to shop. The only choice is whether to enroll in a budget billing, time-of-use or renewable rider, all set by the utility. The 5-step process collapses to 4 in those states: skip step 4.
CallMePower is a free, independent comparison service. We do not charge consumers and we do not tilt our content to favor a single supplier. Every figure in this guide is sourced from the EIA, the FTC, the relevant state PUC, or the utility's own published tariff.