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How to Compare Electricity Providers and Find the Best Rate
A step-by-step guide to shopping for electricity in deregulated states. No affiliate links, no marketplace bias. Just clear guidance on finding the best rate for your household.
Can You Compare Providers in Your State?
Only residents of deregulated states can choose their electricity supplier. Currently, 16 states allow residential choice. If you live in a regulated state, you cannot shop for a supplier, but you can still save through efficiency improvements and rate plan changes.
Not in a deregulated state? See other ways to save on electricity
Step-by-Step Comparison Guide
Find your state comparison tool
Every deregulated state has an official comparison website, either run by the state government or approved by the public utility commission. These tools are unbiased and show all licensed providers in your area. Avoid starting with third-party comparison sites that may prioritize partners over the best rate.
Enter your ZIP code
Your ZIP code determines which utility serves your area and which competitive suppliers operate there. Not all providers serve all ZIP codes within a deregulated state. You may also need your current utility account number, which you can find on your latest bill.
Compare rate per kWh, not estimated total bill
Providers often show an 'estimated monthly bill' based on assumptions about your usage. Ignore this number. Focus on the actual rate per kWh, which is the only number that matters for comparing plans apples-to-apples. Make sure you are comparing the supply rate specifically, not a bundled rate that includes delivery.
Check contract length and early termination fee
Most fixed-rate plans require a 12 to 36-month contract. Shorter contracts offer flexibility but may have higher rates. Longer contracts lock in a lower rate but come with early termination fees (ETFs) of $75 to $200 if you cancel early. Some plans have no ETF, which is ideal if you might move.
Verify renewable energy percentage
If environmental impact matters to you, check the plan's renewable energy content. Some plans are 100% renewable (wind or solar), while others are 0%. Green plans sometimes cost slightly more (0.5 to 1.5 cents/kWh premium), but the gap has narrowed significantly. In Texas, some 100% renewable plans are cheaper than fossil fuel plans.
Read reviews for billing complaints
Before signing up, search for the provider name plus 'reviews' or 'complaints.' The most common complaints are billing errors, difficulty canceling, and unexpected rate increases after the promotional period. Your state's public utility commission website often has a complaint database you can search by provider.
What to Compare in an Electricity Plan
| Factor | What to Look For | Red Flag |
|---|---|---|
| Rate per kWh | Fixed cents/kWh for the full term | Introductory rate that expires after 3 months |
| Contract Length | 12-24 months is typical | Month-to-month with no rate guarantee |
| Early Termination Fee | $0 to $150 is reasonable | ETF over $200 or per-month-remaining charges |
| Auto-Renewal Terms | Clear notice 30-60 days before renewal | Auto-renews at variable rate 30-50% above contract |
| Renewable Content | Clearly stated percentage | Vague 'green' claims with no specifics |
| Minimum Usage Fee | No minimum or under $5/month | Minimum usage charge of $50-100/month |
| Billing Method | Standard monthly billing | Prepaid or deposit-required plans |
Red Flags When Choosing a Provider
Teaser Rates
Introductory rates that expire after 3 months and jump 30 to 50% are designed to attract sign-ups. Read the full contract terms to find the ongoing rate.
Hidden Minimum Usage
Some plans charge a minimum usage fee of $50 to $100 per month, even if you use less electricity. This can wipe out any savings from a lower rate per kWh.
Variable Rate Marketing
Plans marketed as 'market rate' or 'wholesale price' are variable rates that can spike dramatically during extreme weather. During the 2021 Texas storm, wholesale prices hit $9,000 per MWh.
Auto-Renewal Trap
Many contracts auto-renew at a much higher variable or standard rate. Set a calendar reminder 60 days before your contract expires and shop for a new plan.
Official State Comparison Tools
| State | Current Rate | Official Tool |
|---|---|---|
| Connecticut | 29.92 cents | EnergizeCT |
| Delaware | 16.25 cents | DE Public Service Commission |
| Illinois | 17.10 cents | Plug In Illinois |
| Maine | 24.10 cents | Maine PUC |
| Maryland | 16.80 cents | MD Electric Choice |
| Massachusetts | 28.55 cents | MA Energy Switch |
| Michigan | 19.20 cents | MI Public Service Commission |
| Montana | 13.15 cents | Montana PSC |
| New Hampshire | 27.03 cents | NH PUC |
| New Jersey | 18.45 cents | NJ Board of Public Utilities |
| New York | 23.20 cents | NYSERDA |
| Ohio | 14.80 cents | Energy Choice Ohio |
| Pennsylvania | 16.40 cents | PA Power Switch |
| Rhode Island | 26.80 cents | RI PUC |
| Texas | 14.20 cents | Power to Choose |
| Virginia | 13.90 cents | VA State Corporation Commission |
How Much Can You Actually Save?
Be realistic about savings expectations. When you switch electricity providers, you are only shopping the supply portion of your bill, which is roughly 50 to 60% of the total. The delivery charge stays the same regardless of provider.
| Monthly Bill | Supply Savings (20%) | Total Bill Savings | Annual Savings |
|---|---|---|---|
| $100 | $11/mo | 11% | $132 |
| $150 | $17/mo | 11% | $198 |
| $200 | $22/mo | 11% | $264 |
| $250 | $28/mo | 11% | $330 |
| $300 | $33/mo | 11% | $396 |