Cheapest Electricity Plans by State 2026
Finding the cheapest electricity plan in your state takes more than a quick Google search. Electricity rates vary dramatically by state, by utility, and even by the time of year. In deregulated energy markets, you have the power to shop multiple suppliers and lock in a rate that can save you $200–$600 per year compared to your utility’s default rate.
This guide breaks down the cheapest electricity plans available in major deregulated states for 2026, what to look for when comparing, and how to switch without any interruption to your service.
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How Electricity Pricing Works by State
Electricity rates are measured in cents per kilowatt-hour (¢/kWh). The national average residential electricity rate hovers around 16–17¢/kWh, but deregulated states often have access to competitive rates well below that when you shop the open market.
States fall into three categories: fully deregulated (you can choose your supplier), partially deregulated (commercial customers have choice; residential may be limited), and regulated (your utility sets the rate, no shopping available). This guide focuses on fully deregulated states where residents have real choices.
Cheapest Electricity Plans by State (2026)
Texas
Texas has the most competitive electricity market in the country. The Electric Reliability Council of Texas (ERCOT) grid serves roughly 90% of the state. Competitive rates in 2026 range from 9–13¢/kWh on fixed-rate 12-month plans. TXU Energy, Gexa Energy, Green Mountain Energy, and Pulse Power are among the most competitive suppliers. Look for plans under 10¢/kWh on 6-month terms if you want maximum savings, though fixed 12-month plans offer better rate stability heading into summer peak pricing.
Illinois
ComEd and Ameren Illinois customers in the Chicago metro and downstate Illinois can shop alternative suppliers. Competitive fixed rates in 2026 range from 7–10¢/kWh, compared to ComEd’s default supply rate of 9–11¢/kWh. The Illinois Commerce Commission regulates the market, and suppliers must disclose all fees upfront. Look for plans from Constellation, Verde Energy, and Ambit Energy for competitive fixed-rate options.
Pennsylvania
Pennsylvania has been deregulated since 1999 and has one of the most mature competitive electricity markets in the country. PECO (Philadelphia), PPL (central PA), and Duquesne Light (Pittsburgh) all have competitive supplier programs. Competitive rates range from 8–11¢/kWh in 2026. The PA Power Switch website (papower switch.pa.gov) is a state-run comparison tool you can use alongside commercial comparison platforms.
New York
Con Edison customers in New York City and Westchester, plus National Grid customers upstate, can shop competitive suppliers. New York’s rates tend to be higher due to infrastructure costs, but competitive suppliers can undercut the utility supply rate by 10–20%. Fixed rates in 2026 range from 11–15¢/kWh for residential customers, with green energy plans sometimes pricing comparably to fossil fuel plans.
Ohio
AEP Ohio, FirstEnergy (Ohio Edison, Toledo Edison, The Illuminating Company), and Duke Energy Ohio customers all have shopping rights. Fixed competitive rates in 2026 range from 7–9¢/kWh — some of the lowest available in the Midwest. Ohio’s Apples to Apples comparison tool at PUCO.ohio.gov shows standardized offers from all licensed suppliers.
New Jersey
JCP&L, PSE&G, Atlantic City Electric, and Rockland Electric customers in New Jersey can shop competitive suppliers. NJ competitive rates range from 8–11¢/kWh fixed in 2026. The Board of Public Utilities maintains a consumer comparison tool. Green energy plans are especially competitive in NJ due to the state’s strong renewable portfolio standards.
Connecticut
Eversource and United Illuminating customers in Connecticut can shop alternate suppliers. CT rates are among the highest in the nation at the utility level (16–22¢/kWh standard service), but competitive suppliers regularly offer fixed rates in the 12–16¢/kWh range — a meaningful discount in a high-cost state.
Maryland
BGE, Pepco, Delmarva Power, and Potomac Edison customers in Maryland have full shopping rights. Maryland competitive rates range from 8–11¢/kWh fixed for residential. The MD PSC’s Electric Choice website provides a state-maintained comparison. Constellation Energy (headquartered in Baltimore) is a particularly strong competitor in the BGE service territory.
What to Look for When Comparing Plans
The lowest advertised rate isn’t always the cheapest plan. Before you commit, check these four factors:
- Contract length: Short-term plans (3–6 months) may offer lower intro rates but expose you to price spikes at renewal. Fixed 12-month plans offer stability.
- Early termination fees: Some plans charge $50–$150 to break the contract. If you move frequently, choose a month-to-month or no-ETF plan.
- Monthly fees: Some suppliers charge a $5–$10/month account fee on top of the per-kWh rate. Factor this into your actual cost.
- Renewal terms: Many plans auto-renew at a higher variable rate. Set a calendar reminder 30 days before expiration to shop again.
How to Calculate Your Actual Savings
Look at your last 12 months of electric bills and find your average monthly usage in kWh (it’s listed on every bill). Then multiply by the rate difference between your current utility supply rate and the competitive rate you’re considering.
Example: If you use 900 kWh/month and can save 2¢/kWh, that’s $18/month or $216/year. If you can save 4¢/kWh, that’s $36/month or $432/year. Small rate differences add up significantly at scale.
Green vs. Standard Plans — Does Renewable Cost More?
In 2026, green energy plans are often price-competitive with standard fossil fuel plans in deregulated states. Suppliers purchase Renewable Energy Certificates (RECs) to back their green claims. Many offer 100% renewable electricity at rates only 0.5–1¢/kWh above comparable standard plans. If environmental impact matters to you, the premium for going green is smaller than ever.
How to Switch — Step by Step
- Enter your ZIP code on a comparison platform to see available plans in your utility territory.
- Compare rate, contract length, and any fees.
- Sign up with your chosen supplier — you’ll need your account number from your utility bill.
- Your utility continues to deliver the electricity; only the supplier changes.
- The switch takes 1–2 billing cycles. You won’t experience any outage or service disruption.
Compare Electricity Rates in Your Area
Find the best electricity plan for your home or business. Takes less than 2 minutes — no commitment required.
Frequently Asked Questions
Will my electricity service be interrupted when I switch suppliers?
No. Your utility (the local wires company) continues to deliver electricity to your home. Switching suppliers only changes who generates and sells you the power. There is no outage, no technician visit, and no change to your physical connection.
What happens if a competitive supplier goes out of business?
Your state’s utility serves as the “supplier of last resort.” If your competitive supplier fails, you are automatically moved back to the utility’s default rate. There is no gap in service.
Can I switch back to my utility if I don’t like my new plan?
Yes. You can return to your utility’s default supply service at any time, though you may owe an early termination fee if your plan has one. Always check the contract terms before signing.
How often should I shop for electricity rates?
Best practice is to shop annually, 30–45 days before your current contract expires. Rates fluctuate with natural gas prices and seasonal demand. An annual review takes 5 minutes and can save hundreds of dollars.
Is it safe to give my account number to a new supplier?
Yes, in deregulated states this is a standard part of the switching process. Your account number lets the new supplier coordinate the switch with your utility. It does not give the supplier access to your bank account or payment information.
What is a variable-rate plan and should I avoid it?
A variable-rate plan has a rate that changes month-to-month based on market conditions. They can be cheaper than fixed rates in mild weather months but spike significantly during extreme heat or cold. Fixed-rate plans are generally safer for budget-conscious households.