The 14 US deregulated electricity states all run different supplier-choice frameworks. PA offers full 100 percent residential choice. NY restricts marketing rules. MI caps load at 10 percent. The structural reason for the divergence: each state set up deregulation under its own PUC framework during the 1996 to 2002 wave of restructuring laws. Knowing your state shopping rule is the first step before evaluating supplier offers.
The 14-state shopping rule matrix
Pennsylvania: full 100 percent residential choice. Open to all PUC-certified suppliers. New York: full choice with strict ESCO marketing rules. New Jersey: full choice through BPU-certified TPS. Illinois: full choice through ICC-certified ARES.
Massachusetts: full choice plus CCAs. Connecticut: full choice. Maryland: full choice plus aggregation. DC: full choice. Delaware: full choice through DE PSC. Maine: full choice through Maine PUC. New Hampshire: full choice plus co-op rules. Rhode Island: full choice through RI PUC.
Ohio: full choice with SSO procurement framework. Texas: full deregulation (no utility default for most customers; everyone shops). Virginia: limited deregulation (renewable carve-out only). Michigan: capped deregulation (10 percent cap on AES participation).
Why every state is structurally different
Each state set up deregulation under its own PUC framework during the 1996 to 2002 wave of restructuring laws. The laws differed by political dynamics, utility lobbying, and consumer protection emphasis.
The structural differences persist today. Pennsylvania has the most consumer-friendly choice framework. Michigan has the most restrictive. Texas is the only state where retail choice is the default (vs an opt-in).
The red vs blue pattern (and why it does not predict supplier choice)
Deregulation is not partisan. The 14 deregulated states span red (TX, OH) and blue (NY, CA, MA) jurisdictions. The pattern reflects historical PUC structure, not modern political alignment.
Regulated states (most of the South + Mountain West) chose to retain vertically-integrated utilities. The structural choice was made 25 years ago and is hard to reverse because each state's existing utility infrastructure was built around the regulatory framework in place.
Lock the rate before the next reset.
Seenra runs the supplier shortlist in 5 minutes. No credit pull, no on-site visit, no service interruption. Forever free for households.
Get my fixed-rate quote →Common questions
Quick answers from the editorial desk
How many US states are deregulated for electricity?
Can I switch suppliers in every state?
Why are some states capped?
Is there a red vs blue state pattern?
Further reading