What does “deregulation” mean?
In some states, you don’t have to buy electricity from the local utility anymore. Instead, you can pick from competing suppliers and shop for better deals. The utility still owns the poles and wires and makes sure the lights stay on — but you get to decide who sells you the actual power.
Where does it apply?
Not everywhere. Around 17 states (plus D.C.) are deregulated — places like Texas, New York, Illinois, Pennsylvania, New Jersey, Massachusetts, Ohio, and Maryland. In these states, businesses can choose their energy supplier. In most of the South and West, you’re still stuck with the utility. Always check your state’s rules.
Who’s involved?
- Suppliers – Compete for your business with different prices and plans.
- Utilities – Deliver the power and handle outages, no matter who you buy from.
- Grid operators – Run the big system behind the scenes. You don’t deal with them directly, but they influence prices.
Why does it matter to you?
Deregulation means choice. You can:
- Shop for lower rates.
- Lock in fixed prices for budget certainty.
- Pick green or renewable options.
- Get plans that fit your business needs.
What’s the catch?
Choice means you have to pay attention. Utility rates are set and steady. Supplier rates can move with the market. Pick the wrong deal and you could pay more. The good news? With the right supplier, deregulation can save money and give you flexibility.
👉 Bottom line: If your state is deregulated, don’t just take the default. Compare suppliers, find a plan that fits, and take control of your energy costs.
Next: How to choose the right energy supplier for your business →