Which states offer deregulated energy?

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Which states offer deregulated energy?

Since 2002, deregulation has given millions of Texans the power to choose their energy provider. But Texas isn’t the only state with a deregulated energy market. Seventeen U.S. states and the District of Columbia offer some form of significant energy deregulation — and some also include a deregulated natural gas market.

Is your state a deregulated energy state? Read on to find out which states enjoy a deregulated electricity market.

Texas

• Year of deregulation: 2002
• Natural gas deregulation: Available for commercial customers who meet a threshold of usage
• Fun fact: About 85% of Texas enjoys energy choice — the largest percentage of any deregulated electricity state.

Connecticut

• Year of deregulation: 1998
• Natural gas deregulation: Yes, for commercial and industrial customers only
• Fun fact: The laws introducing deregulation also required suppliers to use renewable energy as a portion of the power source — this must be 26% in 2023 and will increase to 40% by 2030.

Pennsylvania

• Year of deregulation: 1996
• Natural gas deregulation: Yes
• Fun fact: Pennsylvania was one of the first states to explore deregulation, beginning an investigation into the energy market in 1994.

Massachusetts

• Year of deregulation: 1998
• Natural gas deregulation: Yes
• Fun fact: About 150 different energy providers have set up service in Massachusetts since it was first deregulated.

New Jersey

• Year of deregulation: 1999
• Natural gas deregulation: Yes
• Fun fact: New Jersey ranks 45th in the U.S. in electricity consumption per capita, while ranking 24th in electricity production.

New York

• Year of deregulation: 1997
• Natural gas deregulation: Yes
• Fun fact: In New York, energy providers are called Energy Services Companies, or ESCOs.

Illinois

• Year of deregulation: 1997
• Natural gas deregulation: About 75% of residential customers can enjoy natural gas choice.
• Fun fact: In Illinois, energy providers are called Alternate Retail Electricity Suppliers, or ARES.

Delaware

• Year of deregulation: 1999
• Natural gas deregulation: No
• Fun fact: Delaware consumes around 70 times more energy than it produces.

Maine

• Year of deregulation: 2000
• Natural gas deregulation: Only industrial and commercial customers can choose their natural gas supplier.
• Fun fact: Biomass supplies one-fifth of Maine’s net energy generation.

Maryland

• Year of deregulation: 1999
• Natural gas deregulation: Depending on the area, some customers are not eligible for natural gas choice.
• Fun fact: In 2019, Maryland required 50% of the state’s electric power to be generated from renewable sources by 2030.

Michigan

• Year of deregulation: 2000
• Natural gas deregulation: Yes
• Fun fact: Michigan does impose some limits on electric customer choice. Consumers may have to wait in a queue before they’re able to choose their supplier.

Montana

• Year of deregulation: 1997, but electricity is no longer deregulated
• Natural gas deregulation: In some territories
• Fun fact: Montana attempted electricity deregulation, but this fizzled out in 2007.

New Hampshire

• Year of deregulation: 1998
• Natural gas deregulation: Not for residential customers
• Fun fact: New Hampshire was one of the first states in the country to begin the process of switching to a deregulated energy market.

Ohio

• Year of deregulation: 2001
• Natural gas deregulation: In some territories
• Fun fact: Ohio is the country’s seventh-largest producer of ethanol, with seven ethanol plants and a total generating capacity of over 740 million gallons annually.

Oregon

• Year of deregulation: 1999
• Natural gas deregulation: No
• Fun fact: In 2020, hydroelectric power made up 50% of Oregon’s electricity production.

Rhode Island

• Year of deregulation: 1996
• Natural gas deregulation: Yes
• Fun fact: As of 2017, competitive energy suppliers in Rhode Island supplied about 47% of the state’s electric demand.

Virginia

• Year of deregulation: 2007, but no electricity deregulation for residential customers
• Natural gas deregulation: Limited for residential customers
• Fun fact: In 2021, natural gas accounted for 57% of Virginia’s electricity net generation.

Washington, D.C.

• Year of deregulation: 2001
• Natural gas deregulation: Yes, for some customers
• Fun fact: In 2021, solar power accounted for 46% of the energy generated in the District of Columbia.