Why States Push Utility Monopolies (and Why It Hurts You)
At your favorite market you get to pick from dozens of choices - fresh fruit, bread, brands you trust, maybe even new favorites you discover on a whim. Now, imagine the market closes its doors to all but one vendor, locking everyone into the same loaf of bread - dry, day-old, and costlier. This, believe it or not, is the future some policymakers envision for your electricity.
What’s Driving the Push Toward Utility Monopolies?
At the Alliance for Competitive Power (ACP), we’ve watched this unfold firsthand. Since the late ‘90s, 17 states and Washington D.C. have embraced energy choice. Instead of being stuck with whoever runs the wires to your home, you get to choose your energy supplier. Competition keeps providers on their toes and often leads to lower costs and improved service. In fact, studies show that in these energy choice states, residential energy prices have barely budged, and rates for businesses have even dropped. Those regions clinging to monopoly models? They're paying more, year after year.
Despite mountains of evidence, some states are toying with rolling back energy choice entirely, tossing power - and all your options - back to just one company. They’ll say it’s about stability or meeting policy goals, but look closer and you’ll see who really gets the short end: you and your wallet.
How Monopolies Quietly Raise Electricity Rates
“Does it really cost less when power companies compete?” Yes - it does. According to the Mackinac Center, states in the Great Lakes region with competitive markets enjoy electricity rates about 23 percent lower on average than Michigan, a monopoly state. In 2026, forecasts from the EIA show residential electricity prices reaching 10-year highs, making the efficiency of competitive markets more critical than ever. When there’s only one provider, nothing keeps prices in check, and customers are left footing the bill every single time costs go up.
Some reports argue otherwise, such as this article from CNET, but these stories don’t always capture the bigger picture. Over years - not just a single snapshot - competitive states come out ahead, with slower price hikes and better long-term value for families and businesses alike.
Why Energy Competition Spells Good News for Everyone
Think about any industry. The more players, the better the deals and the more creative the solutions. That’s as true for electricity as it is for phones or groceries. When suppliers know you can walk away, they fight harder for your business. Monopolies, shielded from this, have little motivation to innovate or keep your rates down. Just look at Missouri - customers there are paying for it, with rising bills and a total lack of alternatives.
Meanwhile, states like Connecticut open the door to new suppliers, leading to unique options and lower costs. You have more control, and you see companies actually listening to your needs. When was the last time a monopoly asked for your opinion?
Re-Monopolizing Power & The Renewable Challenge
Across the country, 28 states require utilities to use more renewable sources, with 16 aiming for 100 percent clean energy. Sounds positive, but these changes mean building new infrastructure and keeping up with tech - no cheap feat. In monopoly states, these extra costs are often passed straight to you, unchecked. RealClearEnergy breaks it down: when utilities don’t compete, you’re the one paying for expensive upgrades. There’s no pressure for smarter spending.
The Evidence That Energy Choice Works
ACP is all about the facts. Our FTI Consulting study proved what we’ve known for years - competitive states have seen much slower increases in electricity rates (86 cents less per kWh from 1996 to 2022), cut emissions faster, and experienced fewer outages. It’s real-life impact for your bottom line and the planet. Want to keep tabs on energy news and policy changes that can affect your costs? Visit our ACP News page for more info.
Lower Bills: Real competition keeps your power bills manageable.
Better Service: More providers mean quicker fixes and responsive support.
Smarter Tech: Markets spark creative ideas - think smart meters and tailor-made plans.
FAQ: What Stakeholders Like You Ask Most
Why are policymakers considering re-monopolization? Some say it’s about reliability or keeping up with complex policy rules. But if you look at the numbers, costs rise and your freedom to choose drops.
Will I truly save money with energy choice? Yes - independent analysis and our own FTI study show competitive states win out over the long run, with lower average increases.
Is renewable power always expensive? Going green carries upfront costs, but when providers compete, they find ways to manage expenses efficiently. That keeps bills as low as possible while staying on track for sustainability goals.
Where can I dig deeper or get involved? Head over to the ACP Home page to find resources and join others keeping the market open for all.
Your Power, Your Voice: The Road Ahead
When states hand control back to monopoly utilities, it's the consumers - the real people behind every meter - who lose out. Choice, new ideas, and fairness vanish. At ACP, we’re pushing for markets where you call the shots. If you care about affordable electricity and options that grow with your needs, reach out to us. Let’s work together to keep America’s power future bright, competitive, and consumer-driven.
Curious what energy choice looks like in action? Watch community stories and expert opinions in our Video Library, or download the latest FTI study summary for the numbers that matter most.
