Deregulated Energy States 2025
As more states adopt deregulated energy models, customers benefit from increased transparency and cost control. Competitive energy markets continue to drive innovation, helping businesses manage long-term costs and achieve sustainability goals through renewable sourcing and demand-response programs.
List of Deregulated Energy States in 2025 (Electricity and Natural Gas)
As of 2025, 32 states and Washington DC have implemented some level of energy deregulation and retail energy choice. Depending on your location, this may apply to electricity, natural gas, or both services. The table below provides a breakdown by state.
Note: This table lists the states that have passed energy deregulation laws. However, putting retail energy choice into practice can be complex. In several of these states, customers may only be able to choose their energy provider in specific areas or under limited circumstances.
United States Energy Deregulation Map
Explore the map below to see which U.S. states currently have deregulated electricity or natural gas markets. Each state highlights where consumers have the power to choose their energy provider, along with insights into deregulation history, incentive programs, and key utility information.
What Is Energy Deregulation?
Traditionally, electric utilities operated as vertically integrated organizations, managing every stage of the energy supply chain, from generation and transmission to distribution, metering, and billing. These companies functioned as regulated monopolies under federal and state oversight.
With energy deregulation, this structure changes. The monopoly is separated into specialized entities, creating a competitive marketplace where different companies handle distinct parts of the energy delivery process.
Private generators produce electricity and sell it in wholesale markets.
Retail Electric Providers (REPs) purchase energy from the wholesale market and offer customized plans to residential and commercial customers.
Transmission and Distribution Utilities (TDUs) such as Oncor and CenterPoint maintain the power grid within assigned service territories, ensuring safe and reliable delivery of electricity. Their charges are included in all retail energy plans.
Think of TDU fees as the “delivery cost” of getting electricity to your property. While you choose your Retail Electric Provider, the local utility ensures that the energy reaches your home or business.
The primary benefit of a deregulated energy market is choice. Consumers and businesses gain the freedom to select their energy supplier based on price, service, or renewable energy options. Some states have deregulated electricity, others have deregulated natural gas, and several offer competition in both markets.
