How to Switch Electricity Suppliers: A Step-by-Step Guide for 2026
What Is Electricity Deregulation?
In a regulated electricity market, one utility company controls everything: generation, transmission, and billing. In a deregulated market, you can choose who generates and sells your electricity. That competition keeps prices honest.
Step 1: Find Out If Your State Is Deregulated
The major deregulated states are: Texas (fully deregulated), Illinois, Pennsylvania, New York, Ohio, New Jersey, Connecticut, Maryland, and Massachusetts.
Step 2: Know Your Current Rate
Pull out a recent electric bill and find your current rate in cents per kWh (look for “energy charge” or “supply rate”). The national average in 2026 is about 14.3¢/kWh. Competitive rates in Texas run 11–13¢. In New York and Connecticut, you may find rates above 20¢ — making supplier switching even more valuable.
Step 3: Compare Suppliers
Use state comparison portals: Texas — PowertoChoose.org | Pennsylvania — PAPowerSwitch.com | New York — AskPSC.com | Ohio — PUCO Apples to Apples chart. Look for rate type (fixed vs. variable), contract length, and cancellation fees.
Step 4: Choose a Plan and Enroll
Enrollment takes about 10 minutes online. You’ll need your utility account number. You do not need to call your current utility. Your service will never be interrupted — only the billing changes.
How Much Can You Save?
| State | Avg Utility Rate | Competitive Rate | Monthly Savings (1,000 kWh) |
|---|---|---|---|
| Texas | 14.0¢ | 11.5¢ | ~$25 |
| Illinois | 13.8¢ | 11.2¢ | ~$26 |
| New York | 22.0¢ | 17.5¢ | ~$45 |
| Connecticut | 25.0¢ | 19.0¢ | ~$60 |