Market guide
How energy deregulation works: all 19 U.S. markets explained
In deregulated energy markets, you choose who generates your electricity - not just who delivers it. Nineteen U.S. states and territories have some form of retail energy choice. Here's what that means, who qualifies, and how switching actually works in each market.
What is energy deregulation?
In a regulated energy market, a single utility handles generation, transmission, and delivery. You pay whatever rate they set, approved by your state's public utility commission. In a deregulated market, generation is separated from delivery. Your utility still maintains the wires and delivers power to your home, but you can choose a competitive retail supplier for the generation (supply) portion of your bill.
This means multiple suppliers compete for your business. They offer different rates, contract terms, and plan structures - fixed-rate, variable, green energy, time-of-use, and more. The utility continues delivering the power regardless of which supplier you choose.
The 19 deregulated jurisdictions
As of 2026, nineteen U.S. states and the District of Columbia have enacted some form of retail electricity choice. Not all markets are equal - some offer full residential choice, while others restrict switching to commercial and industrial customers.
Full residential and commercial choice (14 markets)
These markets allow all customer classes - residential, commercial, and industrial - to choose their electricity supplier:
- Texas (TX) - enacted 2002. ~87% residential switching rate (10.5M customers switched). Mandatory choice in ERCOT territory; 100+ retail providers; largest competitive retail electricity market in the U.S.
- Ohio (OH) - enacted 1999. ~57% residential switching rate (2.6M customers switched). Government aggregation drives switching; 70+ PUCO-certified CRES providers across all major utility territories.
- Pennsylvania (PA) - enacted 1997. ~35% residential switching rate (1.9M customers switched). 50+ licensed suppliers; PA Power Switch comparison tool; PECO, PPL, and Duquesne territories.
- Illinois (IL) - enacted 1997. ~33% residential switching rate (1.6M customers switched). Municipal aggregation in ComEd and Ameren territories; ICC oversight.
- New Hampshire (NH) - enacted 1996. ~28% residential switching rate (0.2M customers switched). First state to pass restructuring legislation (HB 1392); Eversource and Liberty Utilities territories.
- Massachusetts (MA) - enacted 1998. ~22% residential switching rate (0.6M customers switched). Municipal aggregation expanding; National Grid and Eversource territories.
- Rhode Island (RI) - enacted 1997. ~20% residential switching rate (0.1M customers switched). Rhode Island Energy territory (formerly Narragansett Electric); full residential and commercial choice.
- Connecticut (CT) - enacted 1998. ~17% residential switching rate (0.3M customers switched). Eversource ~17.1% and United Illuminating ~17.0% residential switching (CT OCC, Jan 2025).
- Maryland (MD) - enacted 1999. ~16% residential switching rate (0.4M customers switched). BGE, Pepco, and Delmarva Power territories; PJM market.
- New Jersey (NJ) - enacted 1999. ~16% residential switching rate (0.6M customers switched). All major utility territories open to competition; PJM market.
- New York (NY) - enacted 1996. ~15% residential switching rate (1.1M customers switched). ESCO market under active PSC oversight; 100+ CCA communities; restrictions on residential ESCOs.
- Washington, DC (DC) - enacted 2001. ~14% residential switching rate (0.0M customers switched). Pepco territory; active commercial market in PJM.
- Maine (ME) - enacted 2000. ~14% residential switching rate (0.1M customers switched). Utilities fully divested generation; standard offer competitively bid; CMP and Versant territories.
- Delaware (DE) - enacted 1999. ~8% residential switching rate (0.0M customers switched). Delmarva Power territory; lower residential participation than neighboring PJM states.
Limited, capped, or C&I-only markets
These jurisdictions have enacted deregulation but with significant restrictions - typically a cap on total switchable load, limitation to commercial/industrial customers only, or a suspended residential program:
- New Hampshire (NH) - residential and commercial. First state to pass restructuring legislation (HB 1392); Eversource and Liberty Utilities territories.
- Rhode Island (RI) - residential and commercial. Rhode Island Energy territory (formerly Narragansett Electric); full residential and commercial choice.
- Maine (ME) - residential and commercial. Utilities fully divested generation; standard offer competitively bid; CMP and Versant territories.
How switching works step by step
- Confirm eligibility.Verify you're in a deregulated territory and identify your utility (the company that delivers your power and sends your bill).
- Compare plans. Review rates, contract lengths, and terms from competitive suppliers. Look at ¢/kWh, fixed vs. variable, early termination fees, and renewable content.
- Submit enrollment. Provide your utility account number and basic information to your chosen supplier. They handle the switch request with your utility.
- Wait for confirmation. Your utility confirms the switch (typically within 1–2 billing cycles). During this time, service continues uninterrupted.
- Start saving. Once active, your supply charges reflect your new rate. Delivery charges remain unchanged.
Markets we currently serve
Kinetic Grid is currently active in 11 deregulated markets:
- Texas - regulated by Public Utility Commission of Texas (PUCT) (official choice site)
- Ohio - regulated by Public Utilities Commission of Ohio (PUCO) (official choice site)
- Pennsylvania - regulated by Pennsylvania Public Utility Commission (PA PUC) (official choice site)
- Illinois - regulated by Illinois Commerce Commission (ICC) (official choice site)
- Massachusetts - regulated by Massachusetts Department of Public Utilities (MA DPU) (official choice site)
- Connecticut - regulated by Connecticut Public Utilities Regulatory Authority (PURA) (official choice site)
- Maryland - regulated by Maryland Public Service Commission (MD PSC) (official choice site)
- New Jersey - regulated by New Jersey Board of Public Utilities (NJ BPU) (official choice site)
- New York - regulated by New York Public Service Commission (NY PSC) (official choice site)
- Washington, DC - regulated by DC Public Service Commission (DC PSC) (official choice site)
- Delaware - regulated by Delaware Public Service Commission (DE PSC)
Coming soon
We're expanding to these markets next:
- New Hampshire (NH)
- Rhode Island (RI)
- Maine (ME)
Common questions about deregulation
Will my power go out if I switch?
No. Your utility still delivers the electricity. Switching suppliers only changes the generation source and rate. Physical delivery, outage response, and meter reading remain the same.
Can I switch back to my utility's default rate?
Yes, in most markets. This is called "returning to default service" or "price to compare." However, check your contract for early termination fees before canceling a fixed-rate plan.
Is there a cost to switch?
Switching itself is free. However, if you leave an existing contract early, your current supplier may charge an early termination fee (typically $50–$200 depending on the state and plan).
How do I know if I'm in a deregulated area?
Check the list above or enter your ZIP code on our homepage. We automatically detect your state and show available plans for your utility territory.
What to look for when comparing plans
- Rate (¢/kWh):The per-kilowatt-hour supply charge. Compare this to your utility's "price to compare" to see potential savings.
- Contract term: 6, 12, or 24 months are common. Longer terms lock in pricing but reduce flexibility.
- Fixed vs. variable: Fixed rates stay constant; variable rates track market indices monthly.
- Early termination fee: The cost to cancel before your contract ends. Some plans have none.
- Renewable content: Many suppliers offer 100% wind or solar plans at competitive rates.