Regulated vs. Deregulated Electricity Markets
In roughly half of US states, you have a single electricity provider assigned to your area — a regulated utility. You cannot choose who supplies your electricity. In the other half, electricity markets are deregulated (fully or partially), meaning you can shop among multiple retail electricity providers for the best rate while still using the same utility for delivery.
Deregulated states include Texas, Pennsylvania, Ohio, Illinois, Connecticut, Massachusetts, New Jersey, New York, Maryland, and several others. In these states, shopping for electricity can save you 10 to 30 percent compared to the default utility rate, particularly if you compare offers regularly and switch providers when your contract expires.
How to Compare Providers
Focus on the total cost per kWh, not just the advertised energy rate. Many providers advertise low energy rates but add delivery charges, base fees, and other surcharges that increase the effective cost. The best comparison metric is the average price per kWh calculated from the Electricity Facts Label (EFL) or equivalent disclosure document that every provider must publish.
Fixed-rate plans lock your rate for a contract term (typically 6 to 36 months), protecting you from price increases. Variable-rate plans fluctuate monthly and can spike during extreme weather. For most consumers, a fixed-rate plan at a competitive price provides the best combination of savings and predictability.
State-by-State Shopping
Texas has the most active retail electricity market, with dozens of providers and rates ranging from 8 to 16 cents per kWh. Sites like PowerToChoose.org (run by the Texas PUC) let you compare plans by rate, contract length, and renewable content. Pennsylvania offers similar competition through PAPowerSwitch.com. Ohio uses EnergyChoice.ohio.gov.
In each deregulated state, the public utility commission or equivalent agency maintains a comparison tool. Always use the official state tool rather than third-party sites, which may receive commissions and feature preferred providers rather than the cheapest options.
Switching Is Easy and Free
Switching electricity providers takes minutes and involves no service interruption, no technician visit, and no equipment changes. You sign up with the new provider (usually online), and the switch happens within one to two billing cycles. Your delivery utility remains the same. The only consideration is early termination fees if you are still under contract with your current provider — typically $50 to $200.
When to Shop
The best time to shop is 30 to 60 days before your current contract expires. Electricity prices fluctuate seasonally: rates are often lowest in spring and fall when demand is moderate. Setting a calendar reminder to shop your electricity rate annually is one of the simplest ways to keep your energy costs low. Use our electricity calculator to understand your current costs and benchmark them against available rates.