What’s Deregulated Electricity and Which States are Benefiting From It?

Maybe you’ve heard of deregulated electricity and maybe you haven’t but to explain it simply, deregulated electricity is electricity generated from alternative energy sources and the deregulation of it gives residents and business owners alike the power to choose where they purchase their power from. People can now shop around, compare prices of different electricity plans, and make their own choice on retail energy providers (REPs).

This power of choice in utilities is taking away the monopoly from utility companies on power prices. It’s indeed a luxury that more and more people are finding out about and taking full advantage of. But in that same token, it’s a luxury that only certain states can enjoy.

By switching to deregulated electricity, you can enjoy lower electric bills, overall better customer experience, and the peace of mind in knowing that you’re doing something great for the environment. In addition to that, deregulated electricity customers can also enjoy the perks of price stability. Most REPs offer fixed-rate plans that last up to three years. This means no fluctuating energy bills from month to month.

But again, this luxury is only available in certain states, and despite its many benefits on the environment and consumer electric bills, there are still states that are resisting the transition to this form of electricity. The option of deregulated electricity was up for discussion in Nevada back in 2018 but according to the Las Vegas Sun, Nevadans voted against it. Why? Because the state’s utility company, NV Energy, is a major contributor to the state, especially in donations; switching to deregulated energy would almost be a betrayal!

But that’s just Nevada… There are several states that are benefiting from deregulated electricity and even more states that are looking into it. Here are a few states that are currently enjoying the amazing benefits of deregulated electricity.

States With Deregulated Electricity


With warm summers in Montana, the residents there are always looking for ways to save on summer utility bills. Sure, there’s always been the option of handwashing your dishes or properly adjusting your thermostat, but it wasn’t until 1997 when the state voted to deregulate its electricity by signing the Electric Utility Industry Restructuring and Customer Choice Act.

This act allowed residents to choose their power from third-party suppliers. There were, of course, some ups and downs during the process but today, residents of the state are able to utilize clean energy to power their homes.

New York

If you know anything about New York, you know that it has a pretty steep cost of living, and utility costs are a major contributor to that. The deregulation of electricity law in New York passed in the late 90s with the introduction of natural gas. But prior to that, there were complaints dating as far back as the 1960s about energy pricing.

Because of the numerous complaints, it forced the state to look into other options. That’s when improvements to the infrastructure and changes to the energy generation sources and providers were made and alternative electricity came to be. Despite the many benefits of deregulated energy, only a small percentage of New Yorkers are actually utilizing the energy.


Deregulation in Connecticut has been around for quite a while. It actually emerged in 1998 with the passing of the law that created a competitive market. By stepping away from the regulated system, companies were then forced to keep their sources of generation separate from the rest of their businesses. This allowed residents to have power over their utility plans but also caused REPs to be limited in raising their prices to remain competitive in the market.

Companies like Power Setter are catering to a growing number of residents and businesses in Connecticut by helping them take control of their electric bills. The process is simple, you just have to make the decision that deregulated electricity is what you want.


In 1999, Maryland residents were given the power of choice through the Maryland General Assembly when the Electric Customer Choice and Competition Act was passed. On average, Maryland residents saw savings of $20 to $30 per month from switching to deregulated electricity. Not only that, but Maryland residents have also been able to have peace of mind of a fixed electric rate. This is especially beneficial for Maryland’s harsh winter months