Deregulated Energy States

US States with Deregulated Electricity and Gas

The following 18 states have deregulated both utility services – electricity and gas. The following tables summarize their average electricity and gas prices according to the US EIA, and the utility companies with deregulated territories:

Average Electricity Prices – Residential and Commercial

For comparison, the US average electricity price is 16.21 cents/kWh in the residential sector, and 12.91 cents/kWh in the commercial sector.

State	Average kWh Price	TDUs with Deregulated Electricity
1) California	26.72¢ Residential 24.47¢ Commercial	Pacific Gas & Electric (PG&E) San Diego Gas & Electric (SDG&E) Southern California Edison (SCE) LIMITED OPTIONS: Electric choice is only available through a lottery system.
2) Connecticut	28.95¢ Residential 19.84¢ Commercial	Eversource (Previously Connecticut Power & Light) United Illuminating (UI)
3) Delaware	17.46¢ Residential 11.88¢ Commercial	Delmarva Power Delaware Electric Cooperative (DEC)
4) Georgia	13.75¢ Residential 11.39¢ Commercial	Georgia Power Company Electric membership cooperatives (EMCs) Municipal power systems LIMITED OPTIONS: Electric choice is only available for commercial and industrial users with a load of at least 900 kW, located outside of municipal limits. Electric choice also applies for new municipalities and areas annexed to a municipality after 1973.
5) Illinois	15.83¢ Residential 11.27¢ Commercial	Commonwealth Edison (ComEd) Ameren Illinois
6) Maine	29.13¢ Residential 17.78¢ Commercial	Versant Power (Formerly Emera Maine) Central Maine Power Company (CMP)
7) Maryland	18.40¢ Residential 12.55¢ Commercial	Baltimore Gas and Electric (BGE) Choptank Electric Cooperative Delmarva Power Potomac Edison Potomac Electric Power Company (Pepco) Southern Maryland Electric Cooperative (SMECO)
8) Massachusetts	28.02¢ Residential 19.14¢ Commercial	Eversource Unitil (Previously Fitchburg Gas & Electric) National Grid
9) Michigan	19.06¢ Residential 13.41¢ Commercial	Consumers Energy DTE Energy Upper Peninsula Power Company (UPPCO) Upper Michigan Energy Resources (UMERC) Cloverland Electric Cooperative LIMITED OPTIONS: Only 10% of the market was deregulated, and there is a long waiting list to switch your electric provider.
10) New Hampshire	25.76¢ Residential 19.13¢ Commercial	Public Service Company of New Hampshire (PSNH) Liberty Utilities Unitil New Hampshire Electric Cooperative (NHEC)
11) New Jersey	17.51¢ Residential 13.73¢ Commercial	Atlantic City Electric Jersey Central Power & Light (JCP&L) Public Service Electric & Gas (PSEG) Rockland Electric
12) New York	22.70¢ Residential 18.82¢ Commercial	Central Hudson Gas & Electric Consolidated Edison (ConEd) New York State Electric and Gas (NYSEG) National Grid Orange & Rockland Utilities Rochester Gas & Electric (RG&E)
13) Ohio	16.01¢ Residential 10.98¢ Commercial	American Electric Power Ohio (AEP Ohio) Dayton Power & Light (DP&L) Duke Energy Ohio Ohio Edison (First Energy) The Illuminating Company (First Energy) Toledo Edison (First Energy)
14) Pennsylvania	18.43¢ Residential 11.10¢ Commercial	Citizens’ Electric Company Duquesne Light Company Metropolitan Edison (Met-Ed) PECO Energy Penelec Pennsylvania Power Pike County Light & Power PPL Electric Utilities UGI Utilities Wellsboro Electric West Penn Power
15) Rhode Island	31.78¢ Residential 19.82¢ Commercial	National Grid
16) Texas	14.71¢ Residential 9.10¢ Commercial	American Electric Power Central (AEP Central) American Electric Power North (AEP North) CenterPoint Energy Oncor Electric Delivery Texas New Mexico Power (TNMP) Lubbock Power & Light (LP&L)
17) Virginia	14.27¢ Residential 9.11¢ Commercial	Appalachian Power Dominion Energy LIMITED OPTIONS: Electric choice is only available for commercial and industrial consumers. Residential customers only qualify if they are looking for a 100% renewable energy plan, and only when this option is not available from their local utility company.
18) Washington DC	18.02¢ Residential 17.90¢ Commercial	Potomac Electric Power Company (PEPCO)

1) California has the second highest energy consumption after Texas, generating around half of its electricity with renewable sources. However, energy consumption per capita is lower than in most other states thanks to energy efficiency programs.California deregulated the natural gas sector in 1991 and the electric sector in 1996. However, electricity choice is very limited and only available through a lottery system called Direct Access.

2) Connecticut is characterized by its low-energy-intensive economy, in terms of energy usage per dollar of state GDP. Deregulation laws were adopted in 1998, requiring two electric utilities and the Department of Public Utility Control (DPUC) to create a competitive market. Generation was separated from transmission and distribution by 1999, and utility companies auctioned their power plants. Electric choice was implemented between January and July 2000.

3) Delaware enacted deregulation laws in 1999, and implementation started in March 2000. The state is characterized by having the lowest electricity production in the US, and its consumption is 100 times higher than its production. As a result, Delaware depends on power imports.

4) Georgia generates most of its electricity with nuclear and natural gas power plants. Since the state does not have significant fossil fuel reserves, it relies on gas imports from other states. The Georgia Territorial Electric Service Act of 1973 introduced electric choice for large consumers with a demand of over 900 kW, and the natural gas sector was deregulated in 1998.

5) Illinois is the top nuclear power state: Over 50% of its electricity comes from this source, and the state’s nuclear plants produced over 8.4 billion kWh in 2020 alone. Renewable sources are also used, but they only account for 10% of the state’s power mix. Energy deregulation was enacted in 1997, and implemented between 1999 and 2007. Regulated electricity prices were locked by 10 years to simplify the transition.

6) Maine has the cheapest electricity of the New England states, and is also the wind power leader of the region, with over 900 MW of capacity. In 1997, the Maine legislature published an act to deregulate the electric industry.

7) Maryland produces around five times the energy it consumes, making it a major exporter. The state also has an ambitious Renewable Portfolio Standard (RPS), with a goal of 50% renewable generation by 2030. Energy deregulation was enacted in 1999, and it had been applied by 2004.

8) Massachusetts is characterized by its dependence on natural gas, which produces around two-thirds of the state’s electricity. However, the state has been actively working to reduce coal-fired generation, and the rest of its electricity comes mostly from renewables and nuclear power. Legislation to deregulate the power sector was enacted in 1998, and the process had been completed by 2005. This included the Energy Switch Massachusetts program.

9) Michigan is a major user of coal, natural gas and nuclear power. Deregulation laws were enacted in 2000, but their application in the power sector has been very limited. Only 10% of the electric market was deregulated, which means there is a long waiting list to switch providers.

10) New Hampshire is strongly dependent on nuclear power, and the Seabrook plant produces around 60% of the state’s electricity. However, the state has also been investing in wind power, which surpassed coal generation in 2016. New Hampshire enacted deregulation laws in 1996, and utility companies were restructured between 1998 and 2003.

11) New Jersey is dependent on nuclear power and natural gas, which provide over 90% of the state’s electricity. However, the NJ Renewable Portfolio Standard aims for 35% renewable energy by 2025, and 50% by 2030. Natural gas was deregulated in 1997, and electricity was deregulated in 2001.

12) New York is a renewable energy leader, with a Clean Energy Standard that aims for 100% carbon-free electricity by 2040. According to the latest data from the US EIA, the state already gets over 29% of its energy from renewables, and is the third-largest producer of hydropower in the US.  Energy deregulation laws were enacted in 1998.

13) Ohio is a major user of coal and natural gas, and eight investor-owned utilities controlled the state’s electric supply before deregulation. The state enacted laws for energy choice in 1999, and they have been applied since 2001. Regulated electricity rates were reduced by 5% and frozen for five years during the process.

14) Pennsylvania provides an example of a highly successful deregulation process, according to the Center for the Advancement of Energy Markets. Energy choice legislation was enacted in 1996 for electricity, and in 1999 for natural gas. The deregulation process was completed between 1999 and 2001.

15) Rhode Island enacted the Utility Restructuring Act in 1996, making it the first state to take steps towards a competitive energy market. Rhode Island was also the first state to build an offshore wind farm. Natural gas current provides over 90% of electricity, and the rest comes mostly from renewables. National Grid is the main electricity and gas utility, serving 99% of the state.

16) Texas started deregulating its electric sector in 2002, a few years after the New England states discussed above. However, over 26 million Texans can now choose their electricity provider. The power supply is managed by the Electric Reliability Council of Texas (ERCOT), and there are six major utilities with electric choice in their service territory.

Read more about electricity deregulation in Texas.

17) Virginia is another special case. Full deregulation was attempted in 1999, but the state decided to regulate its electric industry again in 2007. As mentioned above, you can only switch to a provider that sells 100% renewable energy, but this is not available everywhere, and your utility company can return you to the regulated service if they have renewables as well. Electric choice is also available for large consumers with a demand of over 5MW, but the switching process takes three years.

18) Washington DC consumes around 70 times more energy that it produces, relying on imports to meet its demand. However, some electricity is generated locally with solar power systems and biomass plants. The city is also very efficient, with a lower energy consumption per capita than most states. Washington DC deregulated the natural gas sector in 1999 and the electric sector in 2001.

Average Gas Prices – Residential and Commercial

For comparison, the US average gas price is $16.70/MCF in the residential sector, and $10.07/MCF in the commercial sector.

State	Average Gas Price (Thousand Cubic Feet)	Gas Utilities with Deregulated Territory
1) California	$17.83/MCF Residential $12.42/MCF Commercial	Pacific Gas and Electric (PG&E) San Diego Gas and Electric (SDG&E) Southern California Gas (SoCalGas)
2) Connecticut	$20.58/MCF Residential $12.30/MCF Commercial	Connecticut Natural Gas Southern Connecticut Gas Eversource *Only for commercial and industrial users.
3) Delaware	$25.36/MCF Residential $16.34/MCF Commercial	Chesapeake Utilities Delmarva Power *Only for commercial and industrial users.
4) Georgia	$27.76/MCF Residential $10.14/MCF Commercial	Atlanta Gas Light (AGL)
5) Illinois	$14.02/MCF Residential $10.72/MCF Commercial	Nicor Gas North Shore Gas Peoples Gas Ameren (only commercial and industrial)
6) Maine	$19.20/MCF Residential $13.75/MCF Commercial *Latest available data from May 2023.	Bangor Natural Gas Maine Natural Gas Corporation (MNGC) Unitil (Northern Utilities) Summit Natural Gas of Maine *Only for commercial and industrial users.
7) Maryland	$19.01/MCF Residential $12.45/MCF Commercial	Baltimore Gas and Electric Company (BGE) Washington Gas Light (WGL)
8) Massachusetts	$16.31/MCF Residential $9.98/MCF Commercial	Berkshire Gas Company Eversource Unitil (Fitchburg Gas) Liberty Utilities National Grid *Natural gas choice is enabled by law but participation is very limited.
9) Michigan	$11.55/MCF Residential $9.44/MCF Commercial	Consumers Energy DTE Energy Michigan Gas Utilities SEMCO Energy Gas Company
10) New Hampshire	$27.18/MCF Residential $19.33/MCF Commercial	Liberty Utilities Unitil (Northern Utilities) *Only for commercial and industrial users.
11) New Jersey	$14.83/MCF Residential $10.74/MCF Commercial	Elizabethtown Gas New Jersey Natural Gas Public Service Electric & Gas (PSEG) South Jersey Gas
12) New York	$20.21/MCF Residential $8.54/MCF Commercial	Central Hudson Gas & Electric Consolidated Edison (ConEd) Corning Natural Gas National Grid National Fuel Gas Distribution New York State Electric and Gas (NYSEG) Orange & Rockland Utilities Rochester Gas & Electric (RG&E) St. Lawrence Natural Gas
13) Ohio	$19.77/MCF Residential $7.45/MCF Commercial	Columbia Gas Dominion East Ohio Duke Energy Vectren Energy Delivery
14) Pennsylvania	$15.50/MCF Residential $10.75/MCF Commercial	Columbia Gas National Fuel Gas PECO Gas Peoples Natural Gas Peoples Natural Gas – Equitable Division Peoples TWP Philadelphia Gas Works UGI Utilities
15) Rhode Island	$24.59/MCF Residential $21.56/MCF Commercial	National Grid
16) Texas	$24.50/MCF Residential $9.81/MCF Commercial	There are multiple natural gas distribution companies, full list available at the Railroad Commission of Texas website. *Only for commercial and industrial users.
17) Virginia	$15.47/MCF Residential $8.83/MCF Commercial	Columbia Gas Washington Gas (WGL)
18) Washington DC	$21.19/MCF Residential $13.30/MCF Commercial	Washington Gas (WGL)