Gas Deregulation: Which States Let You Choose?

Have you ever wondered why some people can shop around for cheaper gas rates while others are stuck with just one option? The answer lies in gas deregulation a policy that opens up the market and gives consumers real power to choose who supplies their natural gas.

Understanding which gas deregulation states allow customer choice is the first step toward lowering your energy costs. Whether you’re looking to switch to a new provider, compare rates, or simply learn more about how natural gas markets work, this guide explains how deregulation started, where it’s available, and what it means for your wallet.

What Is Gas Deregulation?

In a traditional energy market, everything delivery, infrastructure, and supply is controlled by one utility company. Customers have no say in who provides their gas, and rates are approved by state regulators. That’s called a regulated state.

In contrast, deregulated states separate gas supply from delivery. Your local utility still manages pipelines and safety, but you can now choose from multiple natural gas providers competing for your business.

This model introduces customer choice, driving competition, innovation, and often better prices.

How Deregulation Works

Here’s how it plays out in practice:

• Local utilities continue to deliver gas safely through existing pipelines.
• Providers purchase natural gas on the wholesale market and sell it to consumers.
• You choose which provider supplies your home’s energy based on rate type, contract terms, or green options.

You’ll still get a single bill from your utility often listing both the utility’s delivery charge and the provider’s supply charge just like when you read your natural gas bill. The only difference is who sets your price per therm.

Which States Offer Gas Deregulation?

Natural gas deregulation varies widely across the U.S., with some states fully open to competition and others only partially deregulated. Here’s a breakdown:

Fully Deregulated States

These states allow most residential and commercial customers to select their gas supplier:

• Georgia
• Ohio
• Michigan
• New York
• Pennsylvania
• Illinois
• Maryland
• New Jersey

In these areas, customers can use a zip code search to view a provider list, compare plans, and even choose between fixed vs variable gas rates depending on their budget.

Partially Deregulated States

Some states only allow commercial or large-volume users to choose their suppliers:

• California
• Virginia
• Colorado
• Florida

Residential consumers in these states typically still buy gas from their utility, though competitive pilot programs may exist.

Regulated States

States without deregulation such as Texas (for gas), Washington, and the Carolinas maintain single-utility control. Here, all rates and services are overseen by state commissions.

The Benefits of Customer Choice

Consumers in deregulated markets enjoy several major benefits:

1. Competitive Pricing

When multiple natural gas providers compete, they must keep prices fair. This means you can often find a plan below your state’s average natural gas cost.

2. Rate Flexibility

You can choose between fixed-rate plans for stability or variable-rate plans that follow market trends whichever aligns best with your comfort level and budget.

3. Renewable and Carbon-Neutral Options

Some providers offer green energy or carbon-offset programs, allowing eco-conscious customers to make sustainable choices without sacrificing reliability.

4. Better Customer Service

With competition comes accountability. Providers in deregulated states tend to invest more in customer satisfaction, transparent billing, and flexible plans.

Common Misconceptions About Deregulation

Despite its advantages, gas deregulation is sometimes misunderstood. Here are a few myths worth clearing up:

• Myth 1: Deregulation affects reliability.
  False your local utility still maintains the infrastructure, so gas delivery remains just as reliable.
• Myth 2: Deregulation raises prices.
  Not necessarily. While prices can fluctuate due to market forces, customers gain the ability to lock in low rates or switch providers freely.
• Myth 3: It’s complicated to switch.
  In most states, switching takes minutes online. Your utility simply updates the supplier on your next billing cycle no new equipment, no disruption.

How to Check If You’re in a Deregulated Market

The simplest way is to use a zip code search tool on comparison websites like Get Home Utilities. Once you enter your ZIP, you’ll see whether your state supports deregulation and which providers are active in your area.

From there, you can:

• Compare rates per therm.
• Review contract terms.
• Choose between fixed and variable rate plans.

If your state isn’t yet deregulated, keep an eye on policy updates energy reforms continue to expand consumer access across the country.

Deregulated vs Regulated: A Side-by-Side Comparison

Understanding where your state falls helps you manage your costs more strategically.

How Deregulation Impacts Average Costs

Consumers in deregulated states often pay close to or below the national average natural gas cost of $600 per year.

For instance:

• Households in Georgia and Ohio report 10–15% lower annual bills after switching providers.
• Those in regulated markets, like North Carolina, pay more uniform but slightly higher rates.

The difference comes from customer choice the ability to compare rates, lock in fixed terms, and avoid unnecessary markups.

Check out the Natural Gas page today to compare plans, lock in stability, or explore flexible options that fit your home’s budget and state regulations.

Final Thoughts

Whether you live in one of the deregulated states or a regulated one, knowing how your gas market operates is the first step toward smarter energy management.

If your state allows customer choice, take advantage by comparing providers, evaluating fixed vs variable gas rates, and reviewing your natural gas bill for potential savings.

If you’re still under a regulated utility, understanding how pricing works prepares you for future changes as deregulation expands nationwide.

Stay Ahead of Price Swings

Your freedom to choose your supplier can make all the difference in cost and convenience. Visit Get Home Utilities’ Natural Gas page today to explore plans in your ZIP code and see how your state compares.