Energy deregulation (also called retail choice or restructuring) allows consumers to choose their electricity generation supplier while the local utility continues to handle transmission and distribution. About 17 states plus DC have some form of retail electricity choice. In deregulated markets, competitive suppliers offer different rate plans, green energy options, and contract terms. Texas, Pennsylvania, and Ohio are among the most active deregulated markets. Regulated states maintain vertically integrated utilities where one company handles generation, transmission, and distribution.
Energy Deregulation
A policy allowing consumers to choose their electricity supplier, separating generation from distribution.
Related Terms
Electricity Rate
The price charged per kilowatt-hour of electricity, varying by customer class (residential, commercial, industrial).
Peak Demand
The maximum electricity consumption in a grid during a specific period, typically hot summer afternoons.
Generation Mix
The combination of energy sources (coal, gas, nuclear, renewables) used to produce a state's electricity.
this entity is one of the U.S. state-level electricity rates and generation mix concepts that recurs across this site. The definition above is the technical answer; the paragraphs below add the practical context for how the concept connects to the the EIA Open Data API and State Electricity Profiles data behind every per-entity page on the site.
In the the EIA Open Data API and State Electricity Profiles data, this concept shapes one or more of the fields that drive the per-entity grades and rankings on this site. The methodology page describes which fields feed into which output; this glossary entry documents the underlying term.
Source: U.S. Energy Information Administration, 2026.