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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:
- California
- Connecticut
- Delaware
- Illinois
- Massachusetts
- Maryland
- Maine
- Michigan
- Montana
- New Hampshire
- New Jersey
- New York
- Ohio
- Pennsylvania
- Rhode Island
- Texas
- 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.