If so, you’re in good company. Data gathered for PocketSmith’s Global Spending Map indicates Americans experienced a year-over-year decline in utility spending in October 2024, plunging about 12% compared with October 2023. September also saw a smaller decrease.
“This is the most pronounced year-over-year decline we’ve observed among our users since we began collecting information in 2017,” said Dora Yip, CMO of PocketSmith. “The only comparable drop was a roughly 10% year-over-year fall between August 2021 and August 2022.”
Part of the change stems from a warmer-than-usual autumn across many regions, which lowered demand for natural gas. That reduced demand translated to below-average prices when Americans used gas. Depending on your location, electricity costs per kilowatt-hour may have been lower as well.
Still, PocketSmith doesn’t anticipate these lower bills to be permanent. Forecasts for 2025 suggest electricity prices might dip slightly or remain steady overall. However, in some states — California among them — rate hikes are quite likely over the coming year.
Natural gas prices are projected to climb considerably in 2025 compared with 2024 (though they likely won’t reach the peaks seen in 2022). Add to that the usual winter seasonal price pressure when heating demand rises, and bills could climb. That said, there are strategies that may help you cut your utility costs.
An inventive way to lower your utility expenses
Even if you benefited from a temporary reduction in energy spending this fall, what can you do to brace for the probable price increases ahead? You’ve probably already tried trimming consumption.
You may have swapped out incandescent bulbs for LEDs and kept up with HVAC tune-ups. Perhaps you installed a programmable thermostat or used Inflation Reduction Act incentives to buy energy-efficient appliances.
But one larger change can reduce what you pay without necessarily cutting how much gas or electricity you use: shop around for who generates your electricity or supplies your natural gas. This option is available in states with deregulated energy markets.
What does it mean to live in a deregulated energy market?
In roughly half the country, a single utility company both generates and delivers energy, and you don’t have the opportunity to pick your provider — it’s assigned based on your address.
But in about half of the states, residential energy markets for electricity or natural gas — sometimes both — are deregulated. In those states, your local utility will still deliver energy to your home and usually still send your monthly bill.
What changes is that you can choose which company produces the energy you consume. Third-party suppliers may offer a lower price per billable unit, meaning you can pay less while using the same amount of energy.
What to watch for when comparing energy providers
Before switching energy generators, be cautious and read contracts carefully. A few warning signs can help you avoid a bad deal.
How long is the contract?
Start by checking the contract term. Short-term deals often come with seemingly excellent rates that save you money initially but may not last. When the term ends, rates often jump to levels that aren’t as favorable, and companies may rely on customer inertia to keep you on those higher prices. Then you either shop again or accept the increase.
On the other hand, overly long contracts can also be problematic. A reasonable length tends to fall between 12 and 18 months.
Are there cancellation fees?
Many contracts include early cancellation fees. Those fees become more problematic the longer the contract is, especially if you might move before it ends. If relocation is possible, avoid plans with steep exit penalties.
Fixed or variable rates?
Pay attention to whether the rate is fixed or variable. Variable rates carry risk: they can gradually rise or spike suddenly. If you’re considering a longer-term agreement with variable pricing and early termination fees, steer clear. It’s better to choose a supplier with a slightly higher but stable initial rate than one that could expose you to large increases.
Can I save money while choosing green energy?
Green suppliers are chiefly available in deregulated electricity markets. Many firms claim to be “green” or “renewable,” but the most reputable operate at 100% renewable energy, relying on wind, solar, or similar sources. In deregulated areas, selecting a renewable generator lets you effectively add green energy to the grid — even if you rent and can’t install panels yourself.
Often, picking a renewable electricity generator is cheaper than your default utility rate, though affordability varies by market and provider.
Which states have deregulated markets?
Now that you know what to watch for, you can shop providers to trim your energy bills. Below are the states and jurisdictions where deregulated energy markets let you compare rates.
California: Natural Gas
California residents can shop deregulated natural gas markets to lower their bills. The minimum contract length is 12 months. You’ll need to reach out to each provider for current pricing and ensure you contact only those offering residential service.
If PG&E delivers your gas, you can review their list of alternative residential providers.
Connecticut: Electricity
Connecticut lets residents choose their electricity generator using an easy online comparison tool.
Delaware: Electricity
To shop electric suppliers in Delaware, review each company listed on the state’s website.
Florida: Natural Gas
In Florida, you can pick your natural gas generator only if you’re served by Central Florida Gas (CFG) in your area. Elsewhere in the state, residential customers must stick with the designated local utility.
CFG customers should contact individual providers to find current rates.
Georgia: Natural Gas
Georgia’s setup is similar to Florida’s: you can select your gas supplier only if you’re served by Atlanta Gas Light Company. Check rates with each certified marketer.
Illinois: Electricity & Natural Gas
Illinois residential customers can shop for both electric generators and natural gas suppliers.
Indiana: Natural Gas
Indiana allows shopping for gas suppliers in certain areas. If NIPSCO supplies your gas, you may be eligible for the residential CHOICE program.
Iowa: Natural Gas
Iowa technically permits natural gas choice, but it applies to very few customers. It’s limited to areas not served by the four large investor-owned utilities, and utilities must both serve under 2,000 people and opt into a choice program. It’s worth checking whether your area qualifies, though most residents won’t.
Kentucky: Natural Gas
If you’re in a Columbia Gas of Kentucky service area, you currently have supplier choice. Columbia Gas has attempted to end its program as early as 2025, but the state has ordered it remain open through March 31, 2028 while legal matters continue. So compare rates while the option exists.
Maine: Electricity
In Maine, residential customers can’t pick a natural gas supplier, but you can choose who generates your electricity, which may lower costs.
Maryland: Electricity & Natural Gas
Maryland residents can shop for both their gas supplier and their electric generator to find better rates for heating and cooling.
Massachusetts: Electricity & Natural Gas
Massachusetts provides a dedicated comparison site to simplify shopping for electricity. Finding natural gas suppliers is a bit trickier but possible by following state guidance and contacting the residential suppliers listed by the state.
Michigan: Natural Gas
Michigan residents can compare natural gas suppliers through the state’s dedicated website.
Montana: Natural Gas
Montana residential customers cannot comparison-shop for electricity. However, natural gas shopping is possible in some areas. If you’re served by NorthWestern or Energy West, contact the Public Service Commission at 1-800-646-6150 for a list of alternative suppliers.
Nebraska: Natural Gas
If you live in the appropriate portion of Black Hills Energy’s territory, you can choose among these natural gas suppliers; check the coverage map to confirm.
New Hampshire: Electricity
New Hampshire residents can pick their electricity generator through the state’s search tool.
New Jersey: Electricity & Natural Gas
In New Jersey, you can shop for who generates your electricity and who supplies your natural gas. The Board of Public Utilities organizes the search by service area on its website.
New Mexico: Natural Gas
Only a very small number of customers qualify for the state’s deregulated natural gas market. You can contact the natural gas marketers to see if you’re eligible and whether they can offer lower rates.
New York: Electricity & Natural Gas
New Yorkers can cut heating and cooling costs via the state’s Power to Choose site, as both electricity and natural gas markets are deregulated.
Ohio: Electricity & Natural Gas
Ohioans can compare electric and gas rates through a single portal: Energy Choice Ohio.
Pennsylvania: Electricity & Natural Gas
Pennsylvania’s utility commission provides tools to help residents save. Compare electricity on PAPowerSwitch and natural gas on PAGasSwitch.
Rhode Island: Electricity
Rhode Island residents can shop for better electric rates through Empower RI.
Texas: Electricity
About 85% of Texans can choose their electricity generator using the state’s Power to Choose tool.
Virginia: Electricity & Natural Gas
Virginians can shop for electricity generators and natural gas suppliers by contacting individual companies listed on the state’s site.
Washington, D.C.: Electricity & Natural Gas
District residents can use DC Power Connect to compare electric suppliers. A list of approved natural gas suppliers is available here.
Wyoming: Natural Gas
If you live in the eligible portion of Black Hills Energy’s service territory, you can enroll in the Choice Gas program. Be sure the supplier you pick truly lowers your bill. Enrollment is typically open only during specific weeks in April, and new customers usually cannot join outside that window.
Does this mean I can stop fretting over my hot water heater?
Suppose you already adopted solid energy-saving habits: you bought Energy Star appliances, use cold water for laundry, and hang clothes outside in warmer months to avoid using the dryer.
Now that you might be able to buy energy at a lower price, should you abandon those conservation practices?
Definitely not. You’ll achieve the best results by both continuing your energy-saving routines and comparison-shopping energy suppliers. Paying less while using less yields the lowest possible monthly utility bill.
