In states and markets with deregulated energy — like most of Texas, as well as some of Pennsylvania, New Jersey, and a handful of other states — homes and businesses can “shop around” and select the retailer energy provider (REP) of their choice.
Energy consumers in deregulated energy markets have the power to switch to another energy provider if they’re unhappy with their current one — the biggest selling point of deregulation. Like in any other industry, competition naturally encourages companies to offer better prices, plans, and overall experience to attract and retain consumers.
Deregulated Energy Markets in 2024
| State | Gas | Year | Electric | Year | Comments |
|---|---|---|---|---|---|
| Alabama | No | N/A | No | N/A | No Comments |
| Alaska | No | N/A | No | N/A | No Comments |
| Arizona | No | N/A | No | N/A | In 2004 energy regulation was placed on hold due to various regulatory orders. |
| Arkansas | No | N/A | No | N/A | In 2003 Bill 1114 was signed to reverse energy deregulation laws. |
| California | Yes | 1995 | Yes* | N/A | *California’s electric choice works on a very limited lottery system called DirectAcccess. |
| Colorado | Yes | 1999 | No | N/A | Colorado is Natural Gas Deregulated, however no utilities currently offer choice programs. |
| Connecticut | Yes* | 1996 | Yes | 1998 | *Gas choice is partial and very limited. |
| Delaware | No* | N/A | Yes | 1999 | *Gas choice was trialed and discontinued. |
| Florida | Yes | 2002 | No | N/A | No Comments |
| Georgia | Yes | 1998 | No | N/A | No Comments |
| Hawaii | No | N/A | No | N/A | No Comments |
| Idaho | No | N/A | No | N/A | No Comments |
| Illinois | Yes | 2002 | Yes | 1997 | Approximately 75% of the state of Illinois is eligible for Natural Gas Choice. |
| Indiana | Yes | 1998 | No | N/A | Natural Gas Choice is only available for NIPSCO customers. |
| Iowa | Yes* | 1997 | No | N/A | *Natural Gas Choice is only available to a small number of consumers. |
| Kansas | No | N/A | No | N/A | No Comments |
| Kentucky | Yes | 2000 | No | N/A | No Comments |
| Louisiana | No | N/A | No | N/A | No Comments |
| Maine | Yes* | 1998 | Yes | 2000 | *Natural Gas Choice underwent more of a ‘restructuring’ process. It is only available to Industrial and Commercial consumers. |
| Maryland | Yes* | 1995 | Yes | 1999 | *Some residential, commercial and industrial customers in some areas of Maryland are not eligible for Natural Gas Choice. |
| Massachusetts | Yes | 1998 | Yes | 1998 | No Comments |
| Michigan | Yes | 2008 | Yes | 1998 | No Comments |
| Minnesota | No | N/A | No | N/A | No Comments |
| Mississippi | No | N/A | No | N/A | No Comments |
| Missouri | No | N/A | No | N/A | No Comments |
| Montana | Yes | 1986 | No | N/A | No Comments |
| Nebraska | Yes | 1998 | No | N/A | No Comments |
| Nevada | No | N/A | No | N/A | Nevada is currently campaigning to adopt energy deregulation. The status of this state could change in the near future. |
| New Hampshire | Yes* | 1998 | Yes | 1998 | *New Hampshire does not offer Natural Gas Choice to residential customers at this time. |
| New Jersey | Yes | 1999 | Yes | 1999 | No Comments |
| New Mexico | Yes | 1980s | No | N/A | Natural Gas Choice is available however, participation is very limited. |
| New York | Yes | 1999 | Yes | 1997 | No Comments |
| North Carolina | No | N/A | No | N/A | No Comments |
| North Dakota | No | N/A | No | N/A | No Comments |
| Ohio | Yes | 1997 | Yes | 1996 | No Comments |
| Oklahoma | No | N/A | No | N/A | In 2001 Senate Bill 440 was signed for further investigation and study of the impacts of energy deregulation. |
| Oregon | No | N/A | Yes | 1997 | No Comments |
| Pennsylvania | Yes | 1999 | Yes | 1996 | No Comments |
| Rhode Island | Yes | 1996 | Yes | 1996 | No Comments |
| South Carolina | No | N/A | No | N/A | No Comments |
| South Dakota | Yes | 2005 | No | N/A | No Comments |
| Tennessee | No | N/A | No | N/A | No Comments |
| Texas | Yes* | N/A | Yes | 2002 | Electricity deregulation is available to 85% of Texans. *Gas choice is available to commercial customers who consumer 3,650 MCF/annually. |
| Utah | No | N/A | No | N/A | No Comments |
| Vermont | No | N/A | No | N/A | No Comments |
| Virginia | Yes | 2001 | Yes | 2007 | Both Natural Gas and Electric Choice programs are limited for residential consumers. |
| Washington | No | N/A | No | N/A | No Comments |
| Washington DC | Yes | 1999 | Yes | 2001 | No Comments |
| West Virginia | Yes | 2010 | No | N/A | Natural Gas Choice is available but participation is very limited. |
| Wisconsin | No* | N/A | No | N/A | *Wisconsin’s Natural Gas Choice program was discontinued in 2001. |
| Wyoming | Yes* | 1996 | No | N/A | *Very limited program, only one utility offers a choice program. |
As the map and table indicate, many homes and businesses in the US are still operating within regulated energy markets. In regulated markets there is no competition — you pay your local utility directly for the electric/gas they provide you, whatever that (high) cost may be.
Deregulated Natural Gas Markets
As of March 2024, nearly half of US states have introduced some degree of energy deregulation and retail energy choice to homes and businesses within their borders.
Approximately two dozen states — states like Georgia, Massachusetts, and Illinois — operate a deregulated natural gas market. As is the case with electricity, deregulated natural gas markets are where the buying/selling of natural gas is not monopolized and controlled by a single utility. Instead, suppliers are allowed to enter the market to create competition and and hopefully lower the cost of natural gas rates for homes and businesses in that area.
Last updated April 2024