In America, your energy options depend heavily on where you live. In some states, the state determines which company can provide electricity in your area, and you're limited to that provider's energy plan options.
But other states have "deregulated" energy — and if your state is one of those, it's likely that you can get a better deal on electricity, MarketWatch reported.
What is a deregulated energy market?
Although calling a market "deregulated" might make it sound like the Wild West, that's not actually the case. The state still regulates many aspects of energy production, setting safety standards and so on.
However, instead of mandating which clients will be served by which providers, states with deregulated markets allow energy companies to compete for business, as MarketWatch detailed. Monopolies are broken up, and any energy company that wants to can serve any area.
That means you have the option to choose from a list of providers. You'll still get your power through the existing electrical lines, but a different company will oversee your service and charge you for it.
Depending on where you live, you may have just a few options or many. And those energy providers may not only offer different prices but also might differ in the sources of electricity they draw from — with some providing polluting coal- or gas-powered electricity, while others provide clean wind and solar. In fact, changing to the right provider can be one of the biggest ways you can help the planet.
Why is it important to know whether your market is deregulated?
If your energy market is deregulated, there's no monopoly on energy, so companies are in competition. This can drive them to set prices that make them more attractive than the competition.
You could already be with the cheapest provider in your neighborhood — but you might not be, and it's important to know so you can make an informed purchase decision. You can also take into account your environmental values and choose a provider that is eco-friendly.
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As of 2024, the states and districts with deregulated electric markets are California, Connecticut, Delaware, Georgia, Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, and Washington, D.C., according to MarketWatch.
How SaveOnEnergy helps with finding the right provider?
If you're in a deregulated market, visit SaveOnEnergy to start comparing energy plans in your area. This group's free tool allows you to compare different providers for both price and environmental impact.
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