Deregulated Electricity States 2026: Full List & Comparison

Electricity deregulation splits power generation from delivery. Think of it like this: your local utility still owns the poles and wires, but you get to pick who makes (or buys) the electricity flowing through them.

In deregulated states, you choose your electricity supplier. The local utility keeps delivering the power through existing lines. This setup started with state legislation in the 1990s and has stuck around in about a third of the country.

Markets fall into three buckets. Fully deregulated means multiple suppliers compete for your business. Regulated means your utility handles everything - you get what you get. Partially deregulated is the messy middle - maybe only businesses can shop, or only certain areas.

The amount of real competition varies a lot from state to state. Some markets are genuinely competitive. Others technically offer choice but don't have many active suppliers.

As of 2025, 17 states plus Washington D.C. let residential customers pick their electricity supplier.

The most competitive markets are pretty clear. Texas leads with over 100 retail providers and no default utility option - you have to choose. Ohio has strong competition through PUCO-certified suppliers and the Apples to Apples comparison tool. Pennsylvania offers dozens of suppliers through PA Power Switch. Massachusetts has residential choice, though fewer suppliers actively compete there.

ElectricRates.org currently serves Texas, Ohio, Pennsylvania, and Massachusetts customers.

The Northeast is thick with deregulated markets: Connecticut, Delaware, Maine, Maryland, New Hampshire, New Jersey, New York, and Rhode Island. In the Midwest, Illinois has active competition in ComEd and Ameren territories.

All told, about 60 million households can shop for electricity in these states.

Several states have deregulated electricity markets with significant limitations.

States with limited residential choice: California suspended residential choice after the 2000-2001 energy crisis (commercial customers still have options). Virginia has limited choice in Dominion Energy territory, though participation remains low. Michigan caps competitive supply at just 10% of utility load.

States that reversed deregulation: Montana and Nevada both pulled back after deregulation didn't deliver what they'd hoped for. Limited competition continues in some areas.

Commercial-only choice states: Georgia and Florida only allow choice for large commercial customers. Oregon has limited competition—most residential customers stick with traditional utilities.

Key takeaway: Market structures vary significantly—consumer options may be limited compared to fully competitive states.

The Northeast has the highest concentration of deregulated electricity markets, largely served by ISO New England and PJM Interconnection wholesale markets.

Massachusetts offers residential choice through MA DPU-licensed competitive suppliers. The primary distribution utilities are Eversource and National Grid.

Other Northeast deregulated states: In Connecticut, Eversource and United Illuminating customers can choose suppliers. Rhode Island National Grid customers have supplier choice. New Hampshire lets you shop through the NH PUC process. Maine has active competition via Central Maine Power and Versant Power. New York offers extensive choice via NYSERDA Energy Marketplace. New Jersey runs competition via NJ Board of Public Utilities oversight.

Advantage: These markets benefit from shared wholesale infrastructure and regulatory coordination.

The Midwest has a few standout deregulated markets, but it's a patchwork.

Ohio is one of the most competitive in the country. Over 100 certified retail suppliers compete for customers across AEP Ohio, Duke Energy, FirstEnergy, and AES Ohio territories. Real choices, real competition.

Illinois has active markets in ComEd and Ameren territories. Dozens of suppliers compete there, and municipal aggregation programs give residents group buying power.

Michigan is the odd one out. Competition is capped at just 10% of utility load - DTE Energy and Consumers Energy handle almost everything.

The rest of the Midwest stayed regulated. Indiana, Wisconsin, and Missouri all explored deregulation at some point but decided against it. If you're in those states, your utility is your utility.

Ohio and Illinois show that Midwest deregulation can work when you have strong consumer protections and enough suppliers competing.

Texas operates the most deregulated electricity market in the United States with unique characteristics.

Key features of Texas deregulation: ERCOT manages about 90% of the state grid independently from other U.S. interconnections. There's no default utility service—all customers must actively choose a provider. Over 100 retail electricity providers compete for customers.

Plan options available: Fixed rates, variable rates, indexed plans, and renewable energy plans. More variety than you'll find anywhere else.

Regulatory oversight: The Public Utility Commission of Texas oversees the market, and the Power to Choose comparison website helps consumers shop.

Limitations: Municipal utilities and some electric cooperatives are excluded from the competitive market.

Note: The competitive market produces rate variations and promotional offers not seen in other states—but also created the February 2021 winter storm crisis, exposing market design vulnerabilities.

Comparing outcomes between regulated and deregulated states reveals mixed results.

Advantages of deregulated markets: More consumer choice, promotional rates you won't find elsewhere, and renewable energy options unavailable in regulated markets.

Potential drawbacks: Average residential rates sometimes exceed regulated state averages. That reflects regional factors like fuel mix and grid infrastructure costs. Comparison shopping can also be confusing.

Customer satisfaction findings: Deregulated state residents generally appreciate having choice, though some find comparison shopping confusing.

Regulated state trade-offs: You get simplicity with a single-provider relationship, but no competitive alternatives when utility rates increase.

Key insight: Deregulation benefits engaged consumers who actively shop while passive customers may pay more than necessary. Market design, consumer education, and regulatory oversight significantly impact outcomes.

Electricity market structures continue evolving in response to changing technologies and consumer preferences.

Current trends: No new states have fully deregulated residential markets since the early 2000s. The expansion phase appears concluded.

Emerging forms of competition in regulated states: Limited competition for renewable energy, community solar programs, and distributed energy resources like rooftop solar and battery storage are creating new options even where full deregulation doesn't exist.

Federal policy: Occasional national deregulation proposals get discussed, but states retain primary jurisdiction over retail markets.

Market refinements in existing deregulated states: Renewable energy requirements, enhanced consumer protections, and market power concentration rules continue evolving.

Looking ahead: Climate goals may drive market restructuring as states seek to accelerate clean energy deployment.