States With Deregulated Electricity Markets
The US has a number of states with deregulated electricity, giving consumers the power to choose their electric providers. This has led to competition, resulting in a more extensive selection of energy plans, innovation, and potentially lower prices.
Not all states, however, are deregulated and some are only partially deregulated, retaining regulated areas where you cannot freely choose your electricity company.
At Ladybug Energy we have created this guide to help you understand the complex electricity market in the United States in a simple way and know which is the situation in each of the states, so that you can be aware of your options. Let's go for it!
Table of Contents
Deregulated Electricity Market in the US: How It Started
Imagine a time when you could only buy your groceries from one store, no matter the cost or quality. Well, that’s how the electricity market used to be! Until the late 1970s, a single company usually controlled electricity from the power plant to your home. Then, the government decided to shake things up by breaking up these big utility companies.
This started with the Public Utility Regulatory Policies Act in 1978, which encouraged energy conservation and allowed more companies to generate electricity. But the big turning point came in 1992 with the Energy Policy Act. This Act made it easier for states to open up electricity markets to competition. Different companies could now handle the generation, transmission, and distribution of electricity.
Electric Energy Deregulation: The Current Scenario
Fast forward to today, and the United States has a colorful patchwork of electricity markets. Some states, like Texas and Illinois, have fully embraced deregulation. This means if you live in one of the states with deregulated electricity markets, you can choose where you buy your electricity: so if you are not satisfied with their current service you can switch, pushing companies to improve their customer service and offer competitive pricing.
However, some states have only partially opened up their markets, and others have decided to stick with the old ways. As of 2023, about 17 states have made moves towards deregulation to some degree.
Texas is often highlighted as a leading example, where the majority of the population resides in deregulated areas. In contrast, some states, such as California and Michigan, have only partially deregulated their markets.
Benefits of Electricity Deregulation in the US
Deregulation brought numerous benefits to the electricity market and to consumers, by expanding their choices:
- More Options for You: You’re not stuck with one company. You can shop around for the best deals and services.
- Better Prices: Since companies are competing for your business, they’re more likely to offer lower prices. On average, states with deregulated electricity markets have seen prices fall by about 5% between 1997 and 2017.
- Green Energy: Deregulation has made it easier for renewable energy to get in on the action. Companies often offer green energy plans that support wind or solar power.
- Innovation: With competition, companies are motivated to come up with cool new ideas and services to win customers over.
Discover Your Ideal Energy Plan With Us
Are you living in a state with electric deregulation? If so, Ladybug Energy is here to be your trusty guide through the vast energy market. Our platform is designed to make it a breeze for you to sift through numerous energy suppliers and plans, helping you pocket both time and money.
We cut through the confusion by providing clear, honest information and by teaming up exclusively with reputable providers. At Ladybug Energy, our mission is to connect you with the energy plan that fits like a glove for your specific electricity requirements.
Simply pop your zip code into our search bar and let's find out together which is the best plan available in your area.
Map of States With Deregulated Electricity
Explore the states with deregulated electricity markets and click on them to learn more about the current status of deregulation in each state.
List of States With Fully Deregulated Electricity
- Connecticut
- Delaware
- Illinois
- Maine
- Maryland
- Massachusetts
- New Hampshire
- New Jersey
- New York
- Ohio
- Pennsylvania
- Rhode Island
- Texas
- Washington DC
List of States With Partially Deregulated electricity
- California
- Michigan
- Oregon