What is electricity deregulation?
Electricity deregulation eliminates the rules and regulations that restrict companies from selling energy. That makes it easier for companies to enter into the market, which in turn gives you more options of where to purchase electricity and natural gas. In other words, in a deregulated energy market, you can purchase your energy from someone other than your local utility. Just like how there’s more than one phone company, more than one cable company, and more than one airline, there are multiple energy companies that compete for customers.
If you live in California, Connecticut, Delaware, Illinois, Indiana, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia and Washington, D.C. you can choose your electricity and natural gas suppliers. After switching energy suppliers, the only difference you'll notice will be your bill.
Electricity prices vary by fuel cost, power grid maintenance and operation, type of customer (residential, commercial, industrial), location, seasonality and weather conditions.
Many families struggle to pay electricity bills in full each month, particularly when prices and demand rises during the summer and winter months. One way to get help paying your electric bill is to lock in a lower rate during the spring and fall. This will keep your monthly electric bills more consistent and predictable.
The United States generates electricity from a variety of sources including coal, natural gas, nuclear, and renewable energy such as hydropower, geothermal, solar, and wind.