How To Switch Electric Providers

So, you live in a state with deregulated electric service and are thinking about switching to a new provider, but you’re not quite sure how to do it. No worries! Switching providers is super easy, and the best part? It won’t change how electricity is delivered to your home. Let’s break it down and get you started on finding the right plan for you!

States With Deregulated Electricity

The first step is to verify that you live in an area that has deregulated electric service and that you are eligible to switch. Sixteen states, plus the District of Columbia, currently have deregulated electricity service and a few states have also deregulated natural gas service. Check the list below and see if your state has deregulated utilities.

How Deregulation Works

In deregulated states, the electric market is split into:

• Utility Company – maintains power lines, handles outages, and delivers your electricity.
• Retail Electric Provider (REP) – sells you the electricity and sets your rate.

You get to choose your REP, which can offer different pricing plans, contract lengths, renewable energy options, and perks.

Why Switch Electric Providers?

Many homeowners discover they can save money, get better service, or even support clean energy, all by making a simple change. Whether you’re looking for lower bills, more flexible plans, or a greener option, shopping around could unlock perks you didn’t know were available. Let’s explore the key reasons to consider switching:

1. Lower Rates = More Savings
   Did you know you might be overpaying for electricity? Many providers offer competitive rates or promotional pricing, especially for new customers. A quick comparison could help you keep more money in your pocket each month!
2. Fixed vs. Variable Plans: Choose What Fits Your Lifestyle
   Prefer stability? A fixed-rate plan locks in your rate, so no surprises on your bill. Want flexibility? A variable plan adjusts with the market, great if you’re not tied to a long-term commitment. The choice is yours!
3. Go Green with Renewable Energy
   Love the planet? Many providers now offer 100% renewable energy plans (like wind or solar). It’s an easy way to reduce your carbon footprint without sacrificing reliability, or breaking the bank.
4. Better Terms, Less Hassle
   Hidden fees, steep deposits, or rigid contracts can be a headache. Switching lets you find a plan with fairer terms, whether that’s no cancellation fees, month-to-month options, or perks like free nights or weekends.

What to Consider Before Switching Providers

Making the switch to a new electricity provider is exciting, but before you take the leap, it’s smart to do a little homework! A few quick checks can help you avoid surprises and ensure you’re picking the best plan for your needs. Here’s what to keep in mind:

1. Check Your Current Contract Status
   Before saying goodbye to your current provider, peek at your contract terms. Many plans charge early termination fees, sometimes $100 or more, if you cancel before your contract ends. A quick call to your provider can clarify your timeline and help you switch at the right moment.
2. Understand Your Electricity Usage
   Grab a recent bill and note your average monthly kilowatt-hours (kWh). This number is your secret weapon! It lets you accurately compare plans and estimate real savings (because a “low rate” might not be a deal if your usage is high).
3. Scrutinize the Plan Details
   Not all electricity plans are created equal. Look beyond the flashy rate and check: Is it fixed or variable? Are there hidden fees (like “meter reading” charges)? How long is the contract? A little extra reading now can prevent bill shock later.
4. Research the Provider’s Reputation
   A great rate means little if the company’s service is unreliable. Browse customer reviews (the Better Business Bureau and Google are great starts) or ask neighbors about their experiences. Bonus: Some states track complaint records, your utility commission’s website may have insights.

Get Familiar with Your Current Provider

Before switching to a new provider you should compare your current providers to other providers that offer service to your home. Your electric bill should have all the information you need. Your provider’s name and logo should be at the top of your bill. Next, look for an area labeled Energy Charges, Supply Charges, or Generation Charges. This area should tell you how much you pay per kilowatt hour. Also look for any other fees that you might be charged, so you can compare against other providers.

How to Choose a New Provider

Enter your zip code in our search and find a provider that meets your needs. Then you can sign up for service online or by phone. It is important that you consider the options available to you. Many providers offer fixed or variable rate plans and plans with or without a contract. Some providers also have options that are primarily generated from green or clean energy.

Your new provider will take care of making the switch with your current utility company. You should not need to cancel or contact your current electric provider. The switch should go seamlessly and you will not experience any power outages.

That’s it, you’re all ready to save money on your electric bill or find a plan that better suits your needs.

Frequently Asked Questions About Switching Providers

About the Author

David Cosseboom

David has been an integral part of some of the biggest utility sites on the internet, including InMyArea.com, HighSpeedInternet.com, BroadbandNow.com, and U.S. News. He brings over 15 years of experience writing about, compiling and analyzing utility data.