How to Switch Electricity Providers

You can switch electricity providers if your state allows retail choice, but the process and your options depend entirely on where you live

Not every state lets you choose your electricity provider. About half the country operates under deregulated energy markets, meaning you can shop for a different supplier while the utility company still maintains the power lines and handles billing. The other half has regulated monopolies, where one utility owns both the lines and the supply — you cannot switch. Before you do anything else, find out whether your state and specific address are in a deregulated area. Your current utility bill usually says this, or you can search your address on your state's public utilities commission website.

If switching is available to you, the process is straightforward: you contact a new supplier, they handle the paperwork with your utility, and your service transfers within one to three weeks. You keep the same meter and the same physical infrastructure. The utility still reads your meter and maintains the lines; the new supplier just sells you the electricity that flows through them. You will receive one bill from your new supplier and one from the utility for line charges.

Key Takeaways

• Deregulated states allow you to choose your electricity supplier, but regulated states do not — check your state's public utilities commission website to find out which applies to you.
• Switching involves contacting a new supplier, who coordinates with your utility to transfer service; the utility company continues to own and maintain the power lines regardless of who supplies your electricity.
• You will pay two separate bills after switching: one from your new supplier for electricity and one from your utility for line maintenance and delivery charges.
• Rates vary by supplier and contract type, and some suppliers offer fixed rates while others use variable pricing that changes monthly.
• You can switch back to your original utility or to a different supplier at any time, though some contracts include early termination fees.

Which states allow you to choose your electricity provider

Deregulated electricity markets exist in parts of the Northeast, Mid-Atlantic, Midwest, and Texas. States with full or partial deregulation include Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, and Virginia. However, deregulation is not always statewide — some states have deregulated areas and regulated areas within the same state. For example, in Illinois and Michigan, you can switch in some cities but not others.

The easiest way to know whether you can switch at your address is to enter your zip code on your state's public utilities commission website or on a comparison site like EnergySage or PowerToChoose (which covers Texas specifically). These sites will show you available suppliers in your area and their current rates. If no suppliers appear, your area is regulated and you cannot switch.

How to find and compare electricity suppliers in your area

Once you confirm that switching is available, search for suppliers using your state's official comparison tool or a third-party site. Most deregulated states maintain a list of licensed suppliers on their public utilities commission website. You can also search directly — suppliers in your state will appear when you search "[your state] electricity suppliers" or "[your state] choose your supplier."

When comparing suppliers, look at the rate type first: fixed-rate plans lock in a price per kilowatt-hour for a set period (usually 6 months to 3 years), while variable-rate plans change monthly based on market prices. Fixed rates protect you from price increases but are usually higher than the current variable rate. Variable rates are cheaper initially but can spike. Check the contract length and whether there is an early termination fee if you want to switch again before the contract ends. Some suppliers charge $50 to $300 to break a contract early.

Read the fine print for additional charges: some suppliers add administrative fees, monthly service fees, or fees for paper billing. The total cost per kilowatt-hour is what matters, not just the advertised rate. Use your current electricity usage (in kilowatt-hours, shown on your utility bill) to calculate what you would actually pay under each plan.

The steps to switch your electricity supplier

Contact the supplier you want to switch to and provide your account number and service address. You can do this online, by phone, or through their website. The supplier will ask for your utility account number (on your bill) and may ask for your current meter reading, though they can usually get this from your utility. Do not cancel your current service — the new supplier handles the transfer.

The supplier then files a switch request with your utility company. Your utility has a set window (usually 3 to 10 business days) to process the request. During this time, your current supplier may contact you to confirm you want to leave or offer you a retention rate. You can accept or decline. Once the utility approves the switch, your new supplier takes over on the next available meter-reading date, which is typically within one to three weeks.

After the switch, you will receive your final bill from your old supplier and your first bill from the new one. Both bills will show only the charges for the days each company supplied your electricity. Your utility company continues to send you a separate bill for delivery charges (line maintenance, meter reading, and infrastructure costs), which you pay regardless of which supplier you use.

What happens to your utility bill after switching

Your bill splits into two parts: the supply charge from your new electricity provider and the delivery charge from your utility. The delivery charge covers the cost of maintaining the power lines, transformers, poles, and meter that bring electricity to your home. This charge does not change when you switch suppliers — only the supply portion changes. On your bill, you will see line items for "supply" or "generation" (from your new provider) and "delivery" or "distribution" (from your utility).

The total amount you pay depends on your usage and the rate you chose. If you chose a fixed rate, your supply charge stays the same each month. If you chose a variable rate, the supply charge fluctuates. Your delivery charge may also fluctuate slightly based on utility rate adjustments, but this is separate from your choice of supplier.

Switching back or changing suppliers again

You can switch to a different supplier or back to your original utility at any time. The process is the same: contact the new supplier, provide your account number, and they handle the transfer. However, check your current contract for early termination fees. If you are in a fixed-rate contract and want to leave before it ends, you may owe a fee. Some suppliers waive this fee if you switch to them; ask before you commit.

Keep track of when your contract ends so you can decide whether to renew with the same supplier, switch to a new one, or return to your utility's default rate. Many suppliers send renewal notices 30 to 60 days before your contract expires. You do not have to accept the renewal — you can shop around again and switch to whoever offers the best rate at that time.

Reasons to switch and reasons to stay with your utility

The main reason to switch is cost. In competitive markets, suppliers often undercut the utility's default rate, especially if you lock in a fixed rate before prices rise. Some suppliers also offer plans tied to renewable energy sources, which appeals to people who want to reduce their carbon footprint. A few suppliers offer time-of-use rates, where you pay less during off-peak hours and more during peak hours — this works well if you can shift usage to cheaper times.

Reasons to stay with your utility include simplicity (one bill instead of two), stability (no contract terms or early termination fees), and the fact that the utility's rate is often competitive in areas with strong regulation. If you are on a fixed income or prefer not to manage a contract, staying put is reasonable. Switching also takes time to research and monitor, so if you value that time more than the potential savings, it may not be worth it for you.

Frequently Asked Questions

Will switching affect my electricity service or reliability?

No. Your utility company maintains the power lines and meter regardless of which supplier you use. The physical infrastructure and reliability of service do not change. If there is an outage, your utility handles it the same way whether you are on their supply or a competitor's.

What if I move to a new house?

Your contract is tied to your service address, not to you personally. When you move, your contract ends at your old address. At your new address, you can choose a new supplier if deregulation is available there, or you will be on your utility's default rate if it is not. Contact your current supplier to confirm your account closes on your move date.

Can I switch if I have a balance owed to my current utility?

Yes. Your balance with the utility is separate from your choice of supplier. You still owe the utility for delivery charges and any past-due amounts, and you will continue to receive a bill from them after you switch. Switching does not erase what you owe.

How do I know if a supplier is legitimate?

Check your state's public utilities commission website for a list of licensed suppliers. Legitimate suppliers are registered with the state and appear on this list. Be cautious of door-to-door salespeople or unsolicited calls claiming to represent your utility — utilities do not typically recruit customers this way in deregulated markets.

What if my new supplier goes out of business?

If your supplier fails, your utility automatically returns you to their default rate. You will not lose service. Your account transfers back to the utility, and you will receive a bill from them at their standard rate. This can happen, though it is rare, and you are protected by state regulation.