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.