The R Street Institute, a nonpartisan public policy research organization that promotes free markets and limited, effective government, has released a new report grading each U.S. state on the competitiveness of its retail electricity market. The State-by-State Scorecard on Electricity Competition evaluates how well states are fostering customer choice and market-based electricity options, highlighting best practices and recommending improvements.
This is the first comparative scorecard of its kind, providing an independent, data-driven assessment of how states approach electricity competition. The scorecard examines a range of factors including customer access to alternative suppliers, regulatory frameworks, market structure, transparency, and consumer education.
“Consumers demand choices and alternatives, and the provision of electricity shouldn’t be an exception to that expectation,” said Kent Chandler, R Street’s Resident Senior Fellow in Energy and Environmental Policy. “States that embrace competition can deliver lower prices, greater innovation, and more responsive service. Our scorecard offers both a snapshot of where states stand today and a roadmap for how they can move forward.”
State Grades:
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A-: Texas
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B+: District of Columbia, Illinois, Ohio, Pennsylvania
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B: Delaware, Maine, Rhode Island
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B-: Massachusetts, New Hampshire, New Jersey
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C+: California, Connecticut, New York, Virginia
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C: Colorado, Maryland, Michigan
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C-: Arizona, Hawaii, Montana, North Carolina, Oregon, Vermont
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D+: Arkansas, Kansas, Kentucky, Louisiana, Nevada, South Carolina
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D: Alaska, Florida, Georgia, Indiana, Iowa, Missouri, New Mexico, North Dakota, Oklahoma, South Dakota, Tennessee, Washington, West Virginia
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D-: Idaho, Minnesota, Mississippi, Utah, Wisconsin, Wyoming
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F: Alabama
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Not Scored: Nebraska (entirely served by public power utilities)
The authors (Chris Villarreal, Kent Chandler, Michael Giberson) also evaluated factors such as the role of regional transmission organizations (RTOs), the treatment of regulated monopolies, the availability of smart metering, and how well states equip consumers to make informed energy decisions.
“Electricity competition is more than just offering customer choice — it requires meaningful engagement, clear information, and regulatory structures that allow innovation to thrive,” said Chris Villarreal, Associate Fellow in Energy and Environmental Policy at R Street. “Our scorecard is designed to help policymakers see what’s working and where improvements are needed.”
Key areas analyzed in the scorecard include:
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States’ approaches to customer choice and competitive foundations
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Role and treatment of rate-regulated monopolies
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Availability of alternatives within traditionally regulated systems
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Wholesale market participation and RTO integration
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Smart meter deployment and access to energy usage data
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Price caps and product differentiation
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Customer education, marketing transparency, and complaint resolution
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Utility commission staffing and market oversight
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Role of state utility consumer advocates
The scorecard is intended as a resource for policymakers, regulators, and stakeholders who want to understand and improve the state of retail electricity competition. It highlights case studies of successful reforms and offers state-specific strategies to enhance competitiveness and consumer empowerment.
