U. S. Electricity grid at night

Depending on where you live in the U.S., you have the freedom to choose how you buy electricity and natural gas for your home. Not only can you pick the retail energy provider that’s right for you, but you can also decide how much you want to pay, how you want to pay, and if you want renewable/clean energy. 

The technical term for this  concept is “energy deregulation,” but we call it energy choice. It’s available only in certain deregulated energy states across the U.S., and it’s pretty sweet! 

H2: How Many States Have Deregulated Energy Markets? 

As of 2020, 17 states in the U.S. enjoy the benefits of deregulation:

  1. California
  2. Connecticut
  3. Delaware
  4. Illinois
  5. Massachusetts
  6. Maryland
  7. Maine
  8. Michigan
  9. Montana
  10. New Hampshire
  11. New Jersey
  12. New York
  13. Ohio
  14. Pennsylvania
  15. Rhode Island
  16. Texas
  17. Washington D.C.

Some states have only deregulated its electricity market, while others decided to deregulate natural gas. And in some states, residents can choose both energy suppliers! 

However, there isn’t one state in the U.S. that has a 100% deregulated energy market. Each state still has some regulation around its energy. The only state that comes close to complete energy deregulation is Chariot’s very own: Texas

H2: What is Energy Deregulation and How Does It Help Me?

Deregulation makes energy companies compete for your business. Energy choice translates to lower electric bills overall, better quality customer service, and innovations in energy generation, such as solar and wind farms! 

In contrast, customers who live in regulated energy markets have only one provider that dictates the price of electricity and natural gas, including how it’s generated, which is most likely from fossil fuels. Deregulated energy markets allow customers to choose for themselves, empowering them to make smarter energy decisions!  

To learn more about energy deregulation and how it affects you as a residential customer, we’ve compiled the deregulation status of all 50 U.S. states (plus D.C.) below. Note: this doesn’t account for all of the state, as there are some parts that may still be regulated. You should contact the utility company for your area to learn more.

H2: Energy Deregulation Status for All U.S. States

STATE ELECTRICITY NATURAL GAS
Alabama No No
Alaska No No
Arizona No No
Arkansas No No
California Partial choice; very limited Yes
Colorado No No
Connecticut Yes Partial choice; very limited
Delaware Yes No
Florida No No
Georgia No No
Hawaii No No
Idaho No No
Illinois Yes Yes
Indiana No No
Iowa No No
Kansas No No
Kentucky No No
Louisiana No No
Maine Yes No; only for commercial and industrial customers
Maryland Yes Yes
Massachusetts Yes Yes; somewhat limited
Michigan Yes; very limited Yes
Minnesota No No
Mississippi No No
Missouri No No
Montana No Yes
Nebraska No No
Nevada No No
New Hampshire Yes No; only for commercial and industrial customers
New Jersey Yes Yes
New Mexico No No
New York Yes Yes
North Carolina No No
North Dakota No No
Ohio Yes Yes
Oklahoma No No
Oregon No; only for commercial and industrial customers No
Pennsylvania Yes Yes
Rhode Island Yes Yes
South Carolina No No
South Dakota No No
Tennessee No No
Texas Yes No; only for commercial and industrial customers
Utah No No
Vermont No No
Virginia No No
Washington No No
Washington D.C. Yes Yes
West Virginia No No
Wisconsin No No
Wyoming No No

If you’re an energy buff like us and are interested in learning more about deregulation, head on over to our other article for a more in-depth look at energy choice and how it works