The Energy Freedom & Fairness Act: Allow Large Energy Users to Procure Their Own Electricity

Promote this policy in your state

REAL has developed template state legislation that can be tailored to any state. This would allow a determined portion of utility customers in a vertically integrated state to procure electricity from a third party other than the utility. 

This will reduce the amount of new generation utilities must build and ratepayers must fund to meet the growing demand of electricity and allow utilities to continue with planned retirements and investments in new generation on a more manageable scale. 

Highlights of the legislation include:

  • Allowing nonresidential customers 1MW+ (including aggregation) to procure electricity from a source outside of the utility
  • Establishing a cap on the total MWhs eligible
  • Requiring leave and return notices to the utility to provide planning certainty  
  • Empowering the state regulatory body to establish rules to ensure no undue costs to utility ratepayers

Learn more about the The Energy Freedom & Fairness Act and access resources below.

Toolkit

REAL has developed the tools and resources needed for you to advocate for The Energy Freedom & Fairness Act to secure better energy results in your state.

If you have any questions about this legislation or the resources, please contact Abby Foster: foster@retailenergychoice.org.

Legislation and Bill Summary: The Energy Freedom & Fairness Act

The template legislation can be accessed as a PDF or Word Document.

The bill summary can be accessed as a PDF or Word Document.

FAQs about the bill

With any type of policy change, questions will be asked. We have prepared some frequently asked questions about this policy and included answers to help better inform the public. To access the FAQs, click here.

Sharing data to help tell the story in your state

Using data collected by the U.S. Energy Information Administration (EIA), state utility reports, national research and other credible resources, we have compiled data to inform conversations in your state when speaking to price and power generation.

To download generation built data, click here.

To download price performance data, click here.

Failed utility projects that cost ratepayers

Electricity demand response will require new power generation to be built, especially with many planned retirements of power plants in the coming years. We have compiled a list of utility power generation plants that were planned to be built or upgraded but failed to happen, leaving ratepayers to cover millions in costs without the energy to show for it. To access a list of failed utility projects, click here.

Tools for amplifying on social media

COMING SOON!

Proof is in the power – and price

Nearly half of the states in the country allow large energy users, in some capacity, to procure their own electricity. In 2023, commercial customers that purchased electricity from a competitive electric supplier collectively saved $151 million in Michigan and $53 million in Virginia compared to utility rates.

This policy reduces pressure on utilities that need to build ratepayer-funded power plants — freeing up capital for infrastructure and resiliency upgrades. This policy also makes states more attractive for business investment and job creation.

Does your state offer electric choice?

Below is the map showing state by state which locations have energy choice, which have some segments of energy choice, and which ones have not been restructured to allow energy choice in any way.

  • Restructured
  • Partially Restructured
  • Not Restructured
Click by state to display the details.

A case study from Michigan

Michigan implemented this policy in 2008 with a 10% cap on customer load eligible to participate. Since 2008, the cap has been fully subscribed with retail energy suppliers serving 5,539 customers (2,798 MW) in 2024. 

In 2024, there were 5,981 customers in the utility queues, waiting for a spot to open in the cap, however there is little to no movement in the cap each year once the customer is able to shop. To view a report from the Michigan Public Service Commission, click here.