Connect with us

Green & Energy

5 Deregulated States In The US With The Cheapest Electricity Rates

5 Deregulated States In The US With The Cheapest Electricity Rates

Back in the 1980s movement was made towards deregulating the energy markets. Prior to this, the U.S. government was in charge of pricing and consumption. The entire idea behind deregulation was to make the cost of both gas and electricity cheaper. The markets would open up, new providers (still regulated by the states that they operated in) would appear, and consumers would have a choice over which provider they used. In theory, the rates would go down.

Although this plan didn’t work out completely as envisioned since many states still haven’t deregulated their markets, some did. It took almost 20 years for the first deregulated state market to appear. However, one part of the plan worked – consumers began to pay less for their energy usage in some states. The five listed here have some of the cheapest electrical utility rates in the nation.

1) Pennsylvania

In Pennsylvania, electric utility rates have remained consistently below the country’s average prices. This is in part due to deregulation – Pennsylvania opened up their markets in 1996 – as well as the plethora of ways that the state produces power. They use a mix of nuclear, coal, and natural gas, as well as wind and solar generators. The western side of the state has been a hotbed of natural gas procurement, which no doubt helps keep their prices low. Don’t be surprised if these rates at their current lows for many years to come.

2) Ohio

The current going rate for electricity in Ohio is almost half that of some other deregulated states. Consumers are paying somewhere between 5.0 and 7.0 cents per kilowatt-hour. This rate is down almost 50% from what it was two years ago. Ohio was one of the first states to jump on board the deregulation train – it opened up the market back in 1996 – and consumers are enjoying comfortably low rates. This is despite the fact that most of the state’s power plants operate on either coal or natural gas. There are a few nuclear power plants to round out the mix, as well as a few environmentally friendly options as well. The mix of power sources, as well as the state’s energy needs, worked out exactly as planned.

3) Texas

Texas currently allows only around 85% of their household consumers to choose their electric providers. They aren’t deregulated for gas either, just electricity. Despite these facts, as well as their lateness in opening up their markets – 2002 – the state is known for its low electric rates. They are below the nation’s average, yet still slightly higher than Ohio’s and Pennsylvania’s. With that said, Texas has their system set up so that the rates fluctuate. They aren’t fixed in place for a certain period of time. This means that consumers might pay less the less they use, but when their consumption goes up, so does the price. These current lows aren’t as sustainable as residents might hope.

4) Oregon

Oregon deregulated their electric market (but not their gas one) in 1998. This opened up the doors to many different providers, creating the open market and low pricing that many people hoped for. With that said, although their prices are lower than average now, they have gone up slightly over time. This fact shows that their markets are somewhat unstable and prone to change. As long as the state continues to rely on hydroelectric power, a very renewable resource, their rates may remain on the lower side, even if they change on occasion.

5) Illinois

The electric utility rates in Illinois are also currently below the national average. They have been for many years, as the state took advantage of deregulation back in 1997. Due to the fact that Illinois uses a variety of methods for generating electricity – coal, nuclear, natural gas, and renewable resources – their rates have remained consistently low. They are on par with those in Ohio and Pennsylvania. Residents there also use quite a bit of power, as they have some of the highest consumption rates in the country. This might be part of why the rates are so low. However, the open markets have definitely helped here as well. If you live in Illinois, then you can rest assured that you’re paying less for electricity than most of the country.

About the Author –

Arthur Handelman, the author of this guest article, writes occasionally in support of Utility Discount.

Continue Reading

Recent Posts

Home Improvement4 weeks ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Lifestyle4 weeks ago

What is a Deep Plane Facelift

Cosmetic surgery is a choice that needs a lot of research and when it comes to thinking about a facelift...

Entrepreneur4 weeks ago

Unveiling the Demand for Digital Marketing Courses: A Comprehensive Analysis

In recent years, the realm of marketing has undergone a seismic shift propelled by the digital revolution. As businesses increasingly...

Home Improvement1 month ago

What Does an Effective Wardrobe Spring Clean Entail?

Spring is upon us which means one thing and one thing only. It is time for the annual purge of...

Business3 months ago

Your Basic Guide To Creating A Unique Investment Blog

Starting your own blog is great and once you get the ball rolling, it can be a good passive income...

Business3 months ago

3 Low-Risk Ways To Get Your New Business Started

Once you’ve got an initial business idea and believe that it will be a success, there are some basic things...

Lifestyle3 months ago

Conquering the Co-free Zone: Tips for Thriving as a Remote Worker

Adjusting to an office environment can come with its downfalls in the sense that it might be a shock to...

General4 months ago

3 Ways To Take Control Of Your Finances Starting Now

If your finances have taken over and are bringing stress to your life, we understand just how overwhelming it can...

Travel6 months ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General6 months ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle6 months ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos6 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business9 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle10 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing10 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Categories

Archives

Trending