Many businesses in deregulated states can choose their electricity supplier rather than being locked into the utility’s default supply. By comparing offers and locking in a low fixed rate, companies can reduce the cost per kilowatt-hour (kWh) and protect against market volatility. The ability to shop for commercial electricity supply is available in a handful of U.S. states and certain Canadian provinces.
CLICK HERE TO COMPARE ELECTRICITY SUPPLIERS IN ALL DEREGULATED STATES.
States with deregulated electricity markets include:
- Texas (fully deregulated since 2002)
- New York
- California (limited commercial deregulation)
- Pennsylvania
- Illinois
- Ohio
- Massachusetts
- New Jersey
- Maryland
- Connecticut
These states have enacted deregulation laws allowing commercial customers to choose their electricity supplier and find a competitive rate.
In each deregulated state, electricity delivery remains regulated by the local utility. Commercial customers still receive their power through the utility’s distribution network even after choosing a new supplier. For example, Texas’ deregulated market features several transmission and distribution utilities (TDUs) such as Oncor (serving Dallas–Fort Worth), CenterPoint Energy (Houston area), AEP Texas North and AEP Texas Central (West Texas and the Rio Grande Valley) and Texas–New Mexico Power. In Maryland, the major electric distribution companies are Baltimore Gas and Electric (BGE), Delmarva Power, Potomac Edison and Pepco. New Jersey’s distribution companies include Atlantic City Electric, Jersey Central Power & Light (JCP&L), PSE&G and Rockland Electric.
Canada also has a partially deregulated market: Alberta operates a fully deregulated electricity and natural gas market (deregulated in 2001), and Ontario allows competitive retailers to supply electricity while transmission remains regulated.
By shopping around and securing a fixed‑rate plan, commercial customers can budget more effectively and lower their utility bills. Remember to check contract terms, renewal policies and early termination fees when comparing suppliers.
CLICK HERE TO COMPARE ELECTRICITY SUPPLIERS IN ALL DEREGULATED STATES.