Kilowatt Atlas

Guide

Deregulated Electricity States: Where Households Can Choose

People call it deregulation, but the word hides what actually changed. This guide lists the states where households can pick a supplier and says what choice does and does not do.

Reviewed

The list

States and DC with retail electricity choice, 2025
StateChoiceHomes with a supplier
MassachusettsOpen to households61.8%
TexasOpen to households55.1%
OhioOpen to households49.8%
Rhode IslandOpen to households24.8%
PennsylvaniaOpen to households22.4%
IllinoisOpen to households20.7%
New HampshireOpen to households17.8%
ConnecticutOpen to households15.3%
District of ColumbiaOpen to households8.8%
MaineOpen to households7.3%
New YorkOpen to households7.1%
New JerseyOpen to households6.1%
DelawareOpen to households5.6%
MarylandOpen to households5.6%
CaliforniaLimited0.0%
MichiganLimited0.0%
VirginiaLimited0.0%

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data). Share of residential customers served by retail power marketers. Limited states are listed for completeness, and California and Virginia have a small or no supplier share in the EIA data.

Why the share of homes with a supplier differs so much

In 2025, the share of homes with a retail supplier ran from 62% in Massachusetts to 0.0% in Virginia. Having choice and using choice are different. Several things push a state's share up or down:

  • Group buying programs. In some states towns and counties buy power for residents, and residents are enrolled unless they opt out. That counts as supplier service in the data.
  • The default price. When the utility default is competitive, fewer households bother to switch.
  • History. Markets that opened early had more time to build up suppliers and customers.
  • Marketing and rules. Sales practices and consumer protections shape how many households sign.

How to tell if you have choice at your address

  1. Read your bill. If it names a company other than your utility as the supplier, you already use choice.
  2. Check your state on the list above and open its page for the official comparison site.
  3. Make sure your utility is part of the program. Cooperatives and municipal systems are often outside it.
  4. If you are still unsure, ask your utility or your state regulator.

What deregulation changed

Where choice applies, the old single company was split. Power plants are no longer owned and priced by the local utility, and generation is bought on competitive markets. A regulated utility still delivers the power, because poles and wires are a natural monopoly. Suppliers compete to sell the energy.

The result is the structure on your bill: an energy part that suppliers compete on and a delivery part that a regulator controls. Our guide to what a retail electric provider is shows who does what.

What it did not change

  • Your delivery utility, your meter and your outage service.
  • The delivery part of the bill, which stays regulated.
  • Access in every part of a choice state. Municipal utilities and many cooperatives are outside the program.
  • A guarantee of savings. A supplier offer can be higher or lower than the default.

What the other states do

In the rest of the country a regulated utility, a cooperative or a municipal system provides generation and delivery together, and a state regulator or a local board sets its rates. Those households cannot pick a supplier. They can still change their rate plan, join a time-of-use program or use a utility's efficiency offers. See time-of-use rates explained.

Where to find your state’s rules

Each choice state has its own consumer pages and its own list of licensed suppliers. Open your state on the providers page to find its regulator, its official comparison site where one exists and the name it uses for default service. For Texas, which has the biggest market, see the Texas guide.

A note on the word deregulated

Regulators describe these markets as having retail choice or competitive supply. The word deregulated is common in searches, so we use it here, but delivery stays regulated everywhere. The states also differ in their rules for suppliers, their default prices and how much of the state is covered, which is why each state has its own page.

Sources and further reading

Frequently asked questions

What states have deregulated electricity?

Households can choose an electricity supplier in Massachusetts, Texas, Ohio, Rhode Island, Pennsylvania, Illinois, New Hampshire, Connecticut, District of Columbia, Maine, New York, New Jersey, Delaware, Maryland. Michigan has a capped program, and California and Virginia have limited forms.

Is Texas deregulated?

Yes, in the competitive areas. Households there choose a retail electric provider, while a delivery company keeps the lines working. Municipal utilities and most cooperatives are not part of the competitive market.

Is electricity cheaper in deregulated states?

Not by itself. In 2025, the average residential price in the choice states ranged widely, and in the same year the US average was 17.23 cents. Prices depend on fuel, delivery costs and taxes as well as on competition.

How do I know if I can choose?

Check whether your bill lists a company other than your utility as your supplier, or look up your state on the list above.

Why does a choice state show only a small share of homes with a supplier?

Choice means households may switch, not that they have. A competitive default price, little marketing or a program that few people know about can all keep the share low.

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