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Deregulated Energy States

Deregulated energy markets with energy choice allow businesses and residents to choose their electricity or natural gas supplier instead of purchasing through their local utility company. This creates competition among retail suppliers, which can lead to lower rates, flexible contract solutions, and customized options. While your utility will still deliver energy and maintain infrastructure, the rate you pay will come from your supplier. If you’re unsure about your state’s deregulation status, don’t hesitate to reach out to our team of experts.

Knowing Your Independent Systems Operators (ISOs)

You may not know it, but depending on your region, you belong to one of the seven regional transmission organizations (RTOs) in the U.S. Staying up to date with your RTO can help you remain informed on energy related changes happening in your region.

CAISO: Covers 80% of California and a small part of Nevada.

ERCOT: Manages the majority of Texas’s electric grid.

ISO-NE: Oversees Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

NYISO: Responsible for the State of New York.

PJM Interconnection: The largest U.S. operator, covering all or parts of 13 states.

MISO: Operates in 15 states throughout the Midwest and South.

SPP: Manages the grid across parts of 14 states in the central U.S.

Why Do Electricity Rates Vary by State?

Electricity rates vary from state to state due to various factors that affect the state’s wholesale energy market. Factors causing rate variation can include different state regulations, aging grid infrastructure, access to resources, generation cost, and other market conditions. Recently, growing developments in AI data centers and severe weather are also contributing to rate fluctuations.

Why Are Electricity Rates Rising?

Electricity rates across the nation have continued to rise. The rise of AI data centers, EVs, and electrification has spiked electricity demand in the U.S. With demand outpacing the available supply, ISOs are beginning to invest in grid upgrades, generation facilities, and new transmission lines. These projects will take some time to address the imbalance in supply and demand, so in the meantime, electricity rates will continue to increase. Customers can avoid these projected rate increases by utilizing Price to Compare’s online comparison tool to find the best rates and plans available in their area.