Your Guide to Moving to a Deregulated Area

If this is your first time living in an area with deregulated energy, choosing your own provider can be confusing. Choose Energy can help you navigate the deregulated energy market and find the best plan for your needs. 

Deregulation allows customers to choose their electricity supplier from a range of options. A deregulated energy market creates competition between energy providers and allows consumers to compare plans and prices. Currently, 18 states and the District of Columbia offer some form of energy deregulation.

In a regulated energy market, customers receive electricity from their nearest utility company. They have no choice where their electricity comes from, and the utility company sets the price. In a deregulated energy market, electricity is sold through retail electric providers (REPs). This creates competition in the market because customers can choose from multiple REPs vying for business. In some states, you can choose to buy electricity from your utility or an alternate provider, while other states don’t allow utilities to sell plans.

If you are moving to a deregulated state for the first time, it may be confusing to understand your options. The location of your home or business determines which electricity providers and plans are available to you. Choose Energy can help you compare and shop a selection of plans from trusted REPs in Texas and elsewhere. Enter your ZIP code on the screen to explore providers in your area. 

Choose Energy’s resources can help support you during the energy shopping process. Before you get started, here are a few important factors to keep in mind while you are searching for an electricity plan. 

Types of plans

In deregulated areas, there are several types of energy plans. The two most common plans you will find are fixed-rate plans and variable-rate plans. 

Fixed-rate plans have a set electricity rate for the duration of your contract. A fixed-rate plan typically provides more stability because you know what to expect from your monthly electricity bill. 

However, with a variable-rate plan, your electricity rate will fluctuate based on seasonal demand. Variable-rate plans could be a good option to take advantage of low electricity rates. However, remember that your electricity rate will also spike during peak times and can result in higher costs. 

Price of electricity

One benefit of deregulation is that you can shop for the best price. However, this does not always mean deregulated areas are cheaper than regulated areas. The cost of electricity depends on your location and is impacted by multiple factors, such as local weather, the availability of energy sources, and the cost of transportation. 

Electricity prices can vary greatly based on your energy usage. In Texas, many plans include tiers with different rates for three usage levels: 500, 1000, and 2000 kilowatt hours (kWh). Make sure you understand the usage tiers of any plan you’re considering and try to estimate your average electricity usage to inform your decision.

Term length

There are many plan options in deregulated states. Contract lengths typically range from six months to 36 months. If you value stability, a longer contract term may be a good fit for you. However, if you move frequently or rent, a shorter contract term may be a better option. The Choose Energy marketplace features a variety of plans for you to compare costs and term lengths to find the best option. 

Renewable energy

If you want to explore renewable energy, many providers offer partial or 100% renewable options. Green Mountain Energy and Gexa Energy are two providers that focus on offering 100% green energy plans. Use our filter options to search for renewable energy plans under features. 

• Enter your ZIP code. Your location determines what energy providers and plans are available to you. Enter your ZIP code on the Choose Energy marketplace to view your options.
  
• Explore and pick a plan. Calculate your energy consumption and pick the plan and price that works best for your usage level and preferences.
  
• Enjoy your new electricity plan. Your new energy provider will set up your service for a seamless transition.

What is deregulated energy?

Energy deregulation allows consumers to choose their energy provider. Retail electric providers (REPs) sell electricity to consumers through energy plans. Deregulated energy markets create competition between REPs, giving consumers the freedom to compare plans and prices. 

Does energy deregulation make electricity cheaper? 

Energy deregulation does not always result in cheaper energy costs. Energy prices vary greatly by location and depend on seasonal demand and the wholesale cost of electricity. Enter your ZIP code to discover the cheapest electricity plan in your area. 

Can I switch energy providers?

Yes, you can switch energy providers. However, it’s important to check your current energy plan for any early termination fees. Under some energy plans, you may have to pay a fine for ending your contract early.

How many states have deregulated electricity?   

Eighteen states and the District of Columbia currently have deregulated electricity markets. You may benefit from deregulated natural gas, electricity, or both in your state. Enter your ZIP code to determine if deregulated energy plans are available near you.