Deregulated Electricity States: Where You Can Choose Your Electricity Provider

In a deregulated (retail choice) electricity state, you can buy the electricity supply for your home from a competitive supplier instead of your local utility, while the utility still delivers the power over its wires. According to the U.S. Energy Information Administration, 13 states and the District of Columbia have active statewide or districtwide retail choice programs for residential customers, plus Texas, where choice is mandatory in areas operated by ERCOT. Even inside these states, availability depends on which utility serves your address.

What "deregulated electricity" actually means

Your electric service has two parts: supply (generating or buying the electricity) and delivery (moving it over poles, wires and meters to your home). In a traditional, fully regulated market, one utility handles both and a state regulator sets the rates. In a retail choice market, the supply side is opened to competition.

The EIA explains that in states that restructured their electric industries, customers can choose an alternate supplier, but "the distribution utility still delivers the contracted electricity" to the customer's meter and charges for that delivery service (EIA). In practice that means:

• Your poles, wires, meter and outage response stay with your local utility.
• Delivery charges on your bill are still set through the regulator, whoever your supplier is.
• The supplier you choose sets the supply price under its contract.
• In most choice states, you can stay with the utility's default supply service if you prefer not to shop.

EIA also notes that retail choice is generally available only to customers of investor-owned utilities, with a few cooperatives, municipal utilities and government-operated utilities offering it (EIA). That is why two neighbors in the same state can have different options.

States where homeowners and renters can choose their electricity supplier

The list below includes only states (and DC) where we confirmed residential retail electric choice through the EIA or the state's own regulator or energy office. Each row links to the official source we used.

State	Official source	Notes
Connecticut	Public Utilities Regulatory Authority (PURA)	Eversource and United Illuminating customers can choose a licensed supplier or stay on standard service. PURA points to the EnergizeCT rate board.
Delaware	Delaware Public Service Commission	Available to Delmarva Power customers for electric supply; Delmarva still bills and delivers.
District of Columbia	EIA	Counted by EIA among programs with active residential retail choice.
Illinois	Illinois Commerce Commission (Plug In Illinois)	Price-to-compare information for ComEd and Ameren Illinois areas; some communities run municipal aggregation.
Maine	Maine Public Utilities Commission	Customers can choose a competitive electricity provider (CEP) or keep standard offer service.
Maryland	Maryland Public Service Commission	"In Maryland, you have the ability to choose your electricity supplier," or remain with the utility.
Massachusetts	Mass.gov / Department of Public Utilities	Competitive supply is an alternative to basic service; the DPU built Energy Switch MA for shopping.
New Hampshire	New Hampshire Department of Energy	Buy supply from your utility or a competitive energy supplier.
New Jersey	New Jersey Board of Public Utilities	"All customers in New Jersey have the choice" of buying supply from a third-party supplier.
New York	NY Department of Public Service	Energy services companies (ESCOs) sell supply; the utility keeps delivering. See our New York guide.
Ohio	Public Utilities Commission of Ohio (Energy Choice Ohio)	Compare offers on the PUCO's Apples to Apples chart. See our Ohio guide.
Pennsylvania	Pennsylvania PUC (PAPowerSwitch)	Your utility remains your electric distribution company.
Rhode Island	Rhode Island Public Utilities Commission	Nonregulated power producers must register with the state to serve customers, including residential.
Texas	ERCOT / PUCT	About 85% of Texas consumers can choose; areas served by most municipal utilities and co-ops, including Austin and San Antonio, do not have choice.

States with limited choice

EIA reports that Michigan, Nevada, Oregon and Virginia have "limited retail choice programs that are largely available to only non-residential electric customers" (EIA). If you live in one of these states, assume you buy supply from your utility unless your utility or the state commission tells you otherwise.

California is a separate case. EIA notes that California's participation grew from 2% in 2015 to 30% in 2021, largely through Community Choice Aggregation (CCA) programs, where local governments buy power on behalf of residents (EIA). That is a community-level choice rather than each household picking a supplier, so we have not listed California above.

How many people actually switch?

Participation varies widely. EIA found that in 2021, about 26% of eligible U.S. customers took part in their state's retail choice program, roughly 13.2 million residential customers. Some examples from the same analysis (EIA):

• Ohio: participation rose from 45% in 2015 to 50% in 2021.
• Massachusetts: rose from 22% in 2015 to 49% in 2021.
• Illinois: peaked at 57% in 2014 and fell to 31% by 2021.
• Connecticut: fell from a peak of 42% in 2013 to 24% in 2021.

Part of that activity comes from municipal or community aggregation programs, where a town buys supply for residents who do not opt out, rather than each household shopping on its own.

Texas is different

In most choice states, shopping is optional and you can stay with your utility's default service. In Texas, EIA notes the program is mandatory in areas operated by the Electric Reliability Council of Texas (EIA). If you live in a competitive area there, you must pick a retail electric provider. ERCOT says the Public Utility Commission of Texas operates the official comparison site, powertochoose.org (ERCOT). Municipal utilities and electric cooperatives in Texas can choose whether to join the competitive market (PUCT). Read our full Texas switching guide.

How to check whether you can choose at your address

1. Look at your bill. If it shows separate supply (generation) and delivery (distribution) sections, or a "Price to Compare," you are likely in a choice area.
2. Identify your utility. Choice usually applies to investor-owned utility territories. Co-ops and municipal utilities often are not included.
3. Visit your state's official comparison site listed in the table above and enter your ZIP code or utility.
4. Call your utility or state commission if you are unsure. EIA recommends contacting your distribution utility or state regulatory commission to confirm whether choice is available (EIA).

Is switching worth it?

Switching can make sense if you find a supply offer below your utility's default price with terms you are comfortable with. It is not guaranteed to save money. An EIA analysis published in 2019 found that residential customers had generally paid more per kilowatt-hour through competitive suppliers than through utilities (EIA). Compare carefully, and understand the difference between fixed-rate and variable-rate plans before you sign.

Keep in mind that supply is only part of your bill. The average US residential price was 18.16¢ per kWh in August 2026, and that total includes delivery charges that do not change when you switch suppliers.

Red flags in any choice state

• Someone claims to be "from the utility" while selling a supplier's plan.
• A salesperson asks for your account number before you have decided.
• No written disclosure showing price, term, fees and renewal terms.
• Promises of guaranteed savings with no way to verify them.

Next steps

See what homes in your state pay on our electricity rates by state hub, then test any supplier offer with the electric bill calculator to see how it changes your monthly total.