US States with Deregulated Energy in 2024

32 states and Washington DC have introduced some form of energy deregulation and retail energy choice as of 2024. Depending on your state this applies for electricity, natural gas or both utility services – as you can see in the following table:

Both Services Deregulated Only Natural Gas Deregulated Only Electricity Deregulated









New Hampshire

New Jersey 

New York



Rhode Island



Washington DC









New Mexico

South Dakota


West Virginia




NOTE: This table shows which states have enacted energy deregulation by law, but implementing retail energy choice is a complex process. In many of the states listed, you can only choose an energy provider in certain regions or under very specific conditions.

In this article we provide an overview of the states with deregulated energy markets, comparing their average electric and natural gas rates. Electricity prices are provided in cents per kilowatt-hour (¢/kWh), while gas prices are provided in dollars per thousand cubic feet ($/MCF).

United States Energy Deregulation Map

Use our interactive map to study the US states that currently have a deregulated electricity or natural gas market. Click anywhere to learn more about the deregulation history, efficiency incentive programs and utility provider information in a specific state.


What Is Energy Deregulation?

Traditionally, electric companies have been vertical organizations who have control over all stages of the energy delivery process: generation, transmission, distribution, metering and billing. In other words, they have operated as monopolies under federal and state regulation.

When a state deregulates its electric sector, these monopolies are broken down and different companies participate in the energy delivery process.

  • Private generators compete to sell their electricity output in a wholesale market.
  • Retail electric providers (REP) purchase wholesale energy, and resell it to homes and businesses in the form of electricity plans.
  • Transmission and distribution utilities (TDU) such as Oncor and CenterPoint are in charge of the grid. Each TDU is assigned a service territory, and their fees are added to all electricity plans.
  • TDU charges can be described as “shipping costs” in the electric power industry. You purchase energy from a retail electric provider, but the local utility company charges a fee to bring that energy to your property.

The main advantage of having a deregulated energy sector is being able to choose your provider. Some states have deregulated electricity, others have deregulated natural gas, and others have deregulated both services.

Electricity Deregulation in the United States

On November 9, 1965, there was a massive blackout that affected the northeastern USA and southeastern Ontario in Canada. The incident left 30 million people without electricity for 13 hours, and the National Electric Reliability Council (NERC) was created to prevent similar blackouts in the future.

NERC divided the US electricity grid into 10 regions, which were managed separately to improve reliability. However, this also meant that a single company was in charge of the power supply for each region, creating monopolies. The goal of electric deregulation has been to create competition in the power industry, lowering electricity prices, but it must be managed correctly:

Some states have transitioned to a deregulated electric sector with success, while others have faced significant challenges in the process. When done right, deregulation leads to a wide selection of electricity plans for consumers, letting them choose the best option according to their consumption. Deregulation offers the following benefits:

  • Power bill savings, if you choose the right electricity plan and a provider you can trust.
  • You can select electricity plans according to your preferences. For example, you can look for a provider that uses 100% renewable energy.
  • Some electricity plans come with perks, such as smart thermostats or incentives for solar panel owners.

Consider that deregulation only applies for electricity generation and retail sales. Transmission and distribution are still a regulated monopoly – in a given area, a single company manages the power lines, transmission towers, utility poles, transformers, substations, etc. In other words, generation companies compete to sell their electricity, while retailers compete to resell that power to you. However, they all use the same power grid – having competing networks would result in redundant power lines, and it would represent a waste of infrastructure.

When electricity is deregulated, the wholesale market operates like a reverse auction. Just like the highest bidder wins in a normal auction, the seller with the lowest price wins in a reverse auction.

US States with Deregulated Electricity Only

Oregon is the only state where electricity is deregulated while gas remains regulated. However, electric choice is only available for commercial and industrial that meet the following requirements:

  • Electric demand of at least 30 kW.
  • Pacific Power (PacifiCorp) or Portland General Electric service territory.

Here are the average residential and commercial electric tariffs for Oregon according to the Energy Information Administration (EIA):

  • Residential tariff = 13.24 cents/kWh
  • Commercial tariff = 10.22 cents/kWh

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. Oregon has lower electricity prices in both market segments.

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


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


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


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


*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


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


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)

US States with Deregulated Gas Only

The following states have only deregulated their gas sector. Some have a wide range of gas providers to choose from, while others have limited options. 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) Colorado $11.96/MCF Residential

$10.12/MCF Commercial

*Natural gas choice enacted by law, but there are no provider options as of 2024.
2) Florida $29.23/MCF Residential

$13.60/MCF Commercial

Central Florida Gas (CFG)

*Only CFG service territory for residential customers, statewide for commercial and industrial customers.

3) Indiana $11.89/MCF Residential

$7.07/MCF Commercial

4) Kansas $14.30/MCF Residential

$11.00/MCF Commercial

Kansas Gas Service

*Natural gas choice is only available for large customers using 800-1500 MCF per year.

5) Kentucky $16.78/MCF Residential

$11.32/MCF Commercial

Columbia Gas
6) Montana $10.77/MCF Residential

$10.33/MCF Commercial

Northwestern Energy

Energy West Montana

7) Nebraska $18.48/MCF Residential

$8.30/MCF Commercial


*Gas provider choice is only available during a two-week period in April.

8) Nevada $24.63/MCF Residential

$17.76/MCF Commercial

*No gas choice for residential customers, limited options available for commercial and industrial customers using more than 500 therms per day.
9) New Mexico $16.27/MCF Residential

$8.91/MCF Commercial

*Natural gas choice is enabled by law, but options are very limited.
10) South Dakota $9.57/MCF Residential

$5.88/MCF Commercial

*Natural gas choice is enabled by law, but options are very limited for residential users.
11) Tennessee $18.31/MCF Residential

$9.77/MCF Commercial

*Latest available data from August 2023.

Piedmont Natural Gas

*Only available for commercial and industrial users with an average consumption of more than 500 therms per day.

12) West Virginia $30.85/MCF Residential

$16.44/MCF Commercial

*Latest available data from September 2023.

Peoples Gas West Virginia

Dominion Energy West Virginia

Consumers Gas Utility

Mountaineer Gas

*Limited options in the market.

13) Wisconsin $9.84/MCF Residential

$6.74/MCF Commercial

Wisconsin Public Service Corporation

*Only available for commercial and industrial users with a consumption of more than 5,000 therms per year.

14) Wyoming $17.45/MCF Residential

$10.57 /MCF Commercial


US States Without a Competitive Energy Market in 2024

The following states do not have any form of energy deregulation.

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • Hawaii
  • Idaho
  • Iowa
  • Louisiana
  • Minnesota
  • Mississippi
  • Missouri
  • North Carolina
  • North Dakota
  • Oklahoma
  • South Carolina
  • Utah
  • Vermont
  • Washington