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Allconnect® works with partners Choose Energy and Save on Energy to help you conveniently compare electricity providers. If you live in a deregulated electricity market, shopping around for the best rates and plans could help you reduce your monthly utility bill.
Call now or enter your ZIP code above to find energy rates and plans in your area as provided by Choose Energy and Save on Energy.
Deregulated electricity states
In deregulated states, electric providers compete to provide you electricity. Competition can lead to lower energy rates and special promotions.
Electric suppliers and rates vary from city to city and even vary within regions. To make sure you’re getting the best deal, enter your ZIP code above to access a list of local utility companies provided by Choose Energy and Save On Energy.
Regulated electricity states
Electricity is regulated in the majority of states. If you’re in a regulated market, a single utility offers electric services by generating or buying electricity, storing it and delivering it to customers.
While you can’t choose an electric provider in a regulated market, you can still save on other home services with Allconnect. Call us to shop for internet and TV deals.
Which states have deregulated electricity?
States that have elecricity deregulation
The states above all have electricity deregulation. Some states have partial deregulation, though.
- Non-residential customers in California can enter a lottery to qualify to choose non-utility electric service.
- Non-residential customers in limited areas of Virginia can choose non-utility electric service.
- 85% of Texas is deregulated.
- Parts of Ohio are not deregulated and are serviced by electric cooperatives.
If you live in a deregulated state, Allconnect can help you compare electric rates and electric providers in your area. Enter your ZIP code above to shop rates near you.
What is electricity deregulation?
Electricity deregulation separates electricity production from its storage and transmission. In a deregulated electric market, different businesses can handle electricity generation, storage and transmission. In regulated markets, one utility generates or buys electricity, stores it and transmits it to customers.
How deregulated electricity markets work
In a deregulated market, electricity providers generate electricity or buy it from companies that generate it. Having multiple electricity providers available gives customers options such as competitive pricing, renewable energy choices and different term lengths.
Utility companies in deregulated electricity markets
Even in a deregulated electricity market, a local utility still handles how electricity is transmitted and distributed to customers, and customers cannot choose their local utility. The utility company transmits a customer’s chosen electricity, maintains and repairs the power grid and usually bills customers for electricity usage and transmission.
What customers in deregulated markets should know
In some states, utilities can also generate and sell electricity, but customers aren’t forced to buy the electricity from the utility company. They may choose from either the utility or available electricity providers. Before signing up for electricity service, we recommend checking the local utility’s electricity supply rate by checking their rates online or contacting them directly.
The electricity supply rate is how much a customer pays per kilowatt hour of electricity used at home. In most deregulated markets, customers can compare the utility supply rate to other electric providers’ pricing so they choose the best deal for them.
The power to choose your rate
A utility still charges for costs such as transmission and grid maintenance, but you may be able to lower monthly electricity costs by shopping for a provider with a lower electricity supply rate. Allconnect can help you compare electric rates in your area.
Average electric rates by state
Average state electricity rates and rankings, Q2 2018
|State||Rate (cents/kWh)||Rank||State||Rate (cents/kWh)||Rank|
Powered by Choose Energy and Save on Energy. Last updated 08/30/2018.
Electricity rates are subject to change based on region, market factors and electric providers.
Questions about Texas' deregulated electricity market
In Texas, around 85% of residents live in deregulated areas, and they must choose their electricity provider. Exceptions include Austin and San Antonio. If you live in a deregulated part of Texas, Allconnect can help you shop for the best electricity rates from providers in your area.
Around 85% of Texas residents must choose an electricity provider. Utility companies transmit and distribute electricity to customers. But that electricity doesn’t come from a utility—it comes from companies known as Retail Electric Providers. These providers offer competitive plans based on electricity pricing, term length, renewable sourcing and more.
Retail Electric Providers in Texas do not actually generate electricity. Instead, they purchase electricity from power generators and sell electricity to consumers. Texas is home to more than 40 electric providers, and some specialize in selling electricity they purchase from renewable energy generators.
Texas began deregulation in 1995 when the Texas Senate passed a bill requiring the Electric Reliability Council of Texas (ERCOT) to force utility companies to open up the electricity market to additional energy generators and other new entities. It also required certain regulated rates to be deregulated.
An additional bill was passed in 1999 that helped further establish a competitive electricity market by creating a price floor to prevent established energy providers from underselling emerging providers. In 2002, Texas finalized deregulation when the Public Utility Commission gave ERCOT the responsibility of managing and monitoring the Texas electricity market. The market opened up to around 6 million Texas power customers.
An Electricity Facts Label (EFL) gives you information such as:
- Your electric supply rate, usually in units of 500, 1,000 and 2,000-kilowatt hours
- Cost of transmission and distribution from the utility provider
- Your term length
- Early termination fees
To read the pricing section of your EFL, start by locating your service region and then find your price per kWh on the pricing chart.
You’ll also see a flat rate and a price per kWh rate for TDU or TDSP (which stand for Transmission and Distribution Utility or Transportation Distribution Service Provider). These are costs that your utility charges for delivering electricity and maintaining power lines. The costs are unique to your local utility and have nothing to do with your electricity provider.
Some major electricity providers in Texas include:
- Bounce Energy
- Direct Energy
- Just Energy
- TriEagle Energy
- TXU Energy
Recently, electricity prices in Texas have risen due to weather patterns, high electricity demand because of a growing Texas population and market factors such as closings of multiple coal plants.
Customers with month-to-month plans, known commonly as variable-rate plans, or customers initiating or renewing their electricity plans during the summer could see high rates. If you live in Texas and are shopping for a lower electricity rate, Allconnect can help you shop for the best available rates.
According to the U.S. Energy Information Administration, natural gas is the largest electricity generation source in Texas. In April 2018, natural gas accounted for 46% of electricity generation. Non-hydroelectric renewable sources, mostly wind energy, accounted for 23% of electricity generation and coal accounted for 21%.
Whether you live in Texas or another deregulated state, Allconnect partners Choose Energy and Save on Energy can show you rates and providers available in your area. Enter your ZIP code above to make sure you’re getting the best deal and shop rates available near you.
Common electricity service questions
- Install weather stripping to doors and windows
- Wash clothes in cold water
- Turn off the heated dry on your dishwasher
- Invest in ENERGY STAR® certified appliances
- Use ceiling and standing fans to circulate air
Utilities are regulated and deregulated at the state level, where public service commissions are responsible for overseeing and authorizing investment decisions, operations and customer rates.
If you live in a regulated state, your local utility determines who generates your electricity and controls your electricity transmission and distribution. You can usually find your utility company by visiting your city government website, by contacting your local government office or by contacting your landlord if you are a renter.
A fixed rate plan is an electricity plan charging the same price per kWh from month to month. In addition, a flat rate plan is an electricity plan that charges the same price per kWh no matter how much you choose. Variable electric rate plans allow your price per kWh to vary by month to month.
Last updated 8/30/18.
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Whether you live in a deregulated electricity market or a regulated electricity market, Allconnect can help you save on home services. Call our experts today to learn more about electricity, internet, TV and home phone services. It's easy to find affordable plans for your home–give Allconnect a call today.