Deregulated energy markets separate the physical delivery of electricity and gas (still handled by regulated utilities) from the commodity supply (open to competitive retailers). In 20+ states, businesses can choose their electricity supplier — and the competitive process delivers better rates than utility default service.
Schedule a free energy consultation →
The Structure of a Deregulated Market
Three tiers: (1) The ISO/RTO manages the wholesale grid — generation, transmission, system reliability. (2) The local utility distributes power through regulated wires at rates set by the state PUC. (3) Licensed retail energy suppliers sell the commodity to commercial customers through competitive contracts. Businesses interact with all three through their utility bill.
How Competition Lowers Supply Rates
In regulated markets, one entity handles everything — no competition, rates set by the regulator. In deregulated markets, retail suppliers compete for your supply contract. That competition drives pricing. A broker intensifies the competition by submitting to 30+ suppliers simultaneously rather than negotiating with one.
Ready to compare commercial energy rates?
We shop 30+ suppliers at no cost to you.
The 20 Deregulated Commercial Electricity States
Texas, Pennsylvania, Ohio, Illinois, New York, New Jersey, Massachusetts, Connecticut, Maryland, Michigan, Delaware, New Hampshire, Maine, Rhode Island, Montana, Oregon, California (large commercial), Virginia (large commercial), New Mexico, and Nevada (large commercial) all have some form of commercial retail energy choice.
Default Service: The Fallback Rate
Accounts that don't choose a retail supplier are served at a utility default rate — sometimes called Standard Offer Service, Basic Generation Service, or Provider of Last Resort. These rates vary: some track wholesale markets (exposure to spikes), some are set quarterly at auction (stable but may not be the best available). Running a broker process establishes whether default service is competitive.
Natural Gas Deregulation
Natural gas retail competition is available in many of the same states as electricity, plus additional markets. The structure is similar: your local distribution company (LDC) handles pipes and delivery; retail gas suppliers compete for the commodity portion. NYMEX Henry Hub is the underlying price benchmark.
Frequently Asked Questions
How does a commercial energy broker get paid?
Brokers are compensated by the supplier you choose — a small per-kWh fee built into the contract rate. This fee exists in every supplier's pricing regardless of whether a broker is involved. You pay nothing out of pocket.
How many suppliers will you get quotes from?
We submit to 30+ licensed retail energy suppliers active in your state. Not all will quote every account — load size, credit profile, and industry classification affect who bids. We pull from the full available market.
How long does the process take?
From data collection to competing offers typically takes 3–5 business days. Contract execution takes another 1–2 business days. Service transition happens on your next billing cycle — no interruption.
Is there a contract with the broker?
No. You authorize us to collect your usage data and solicit quotes on your behalf. There's no fee arrangement, no retainer, and no commitment until you choose a supplier offer to execute.
What if I'm currently under contract?
We'll review your existing contract terms, note the expiration window, and initiate a quote process 6–9 months before expiration. If there's an early termination option that makes economic sense, we'll flag it.