Molly Ayala
Florida currently operates as a regulated monopoly, with the largest electric companies dividing up the state into territories. This means that, unlike in deregulated states, Floridians cannot choose their electricity supplier and are instead beholden to the company operating in their area. However, there are movements to deregulate Florida's electric grid, which would allow residents to choose their supplier and benefit from competitive pricing and more innovative services.
| Characteristics | Values |
|---|---|
| Current situation in Florida | Regulated monopoly with the largest electric companies dividing the state into territories |
| Proposed amendment | To deregulate Florida's electric grid |
| Amendment process | Requires 766,200 signatures to be included on the 2020 ballot and then 60% of voters' approval |
| Impact of deregulation | Increased competition, potential savings, better customer service, and more innovative services |
| Switching process | Find a new supplier, enroll with them, and they will handle the switch |
| Factors to consider when switching | Early termination fees, contract terms, electricity rates, renewable energy options, and supplier reputation |
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What You'll Learn
Florida's electricity market is a regulated monopoly
In a regulated monopoly, the utility company controls the entire process of creating, transmitting, and distributing electricity. The law allows only regulated power companies to distribute power. This means that the company can increase rates almost at will, as state regulators seldom deny their proposals to increase prices because state law provides them with a guaranteed profit.
In a deregulated energy market, by contrast, multiple electricity suppliers compete for customers' business, offering different rates and plans. This competition can drive innovation and better services, as companies are forced to create and invent to stay competitive.
There is a movement to end the energy monopoly in Florida, with Citizens for Energy Choices pushing to get an amendment on the 2020 ballot demanding deregulation of the energy market. They collected more than 76,000 signatures in its push to get the proposed amendment on the 2020 ballot. The amendment would have allowed utilities to continue to own power lines and power poles, but electric plants would enter the open market, with residents able to buy electricity from any third-party supplier.
However, critics of the amendment argue that it would significantly increase costs for state, county, and local governments. They also point to the fact that Florida's electricity market is already heavily regulated, and that the proposed amendment would "radically and permanently dismantle" the industry.
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Citizens for Energy Choices push for deregulation
In Florida, it is not possible to change electric companies as the state is a regulated monopoly, with the largest electric companies controlling different areas of the state. However, Citizens for Energy Choices, an Alachua County-based group, is pushing for a constitutional amendment to deregulate investor-owned utilities. The group collected over 76,000 signatures in an attempt to get the proposed amendment on the 2020 ballot. However, the state's Financial Impact Estimating Conference reviewed the amendment and determined that it would need to collect 766,200 signatures to make it to the ballot and then would need 60% of Florida voters to approve. Unfortunately, the amendment was blocked from appearing on the 2020 ballot as the ballot language was deemed misleading by the Florida Supreme Court.
The proposed amendment would have allowed utilities to continue owning power lines and power poles, while electric plants would enter the open market, giving residents the ability to buy electricity from any third-party supplier. Proponents of the amendment argue that deregulation would allow residents to choose their electricity supplier, leading to potential savings, better customer service, and more innovative services. Additionally, they point to the 18 other states that have already successfully deregulated electricity, such as Texas, where the price per kilowatt-hour is 0.88 cents cheaper.
On the other hand, opponents of the amendment, including Florida Power and Light spokesman Chris McGrath, argue that deregulation is a historically failed idea that will harm consumers, hurt Florida's economy, and set back the state's clean energy progress. John Reed of Concentric Energy Advisors shares similar concerns, stating that the amendment would "significantly increase costs to state, county, and local governments in the state of Florida and reduce revenues."
While the push for deregulation in Florida did not succeed in 2020, it is worth noting that in a deregulated energy market, residents have the power to choose their electricity supplier and benefit from competitive pricing. This competition among multiple electricity suppliers can drive innovation and better services, as well as allow customers to seek out specific needs such as renewable energy options.
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Deregulation could increase costs for the state
In Florida, the electricity industry is currently a regulated monopoly, with the largest electric companies dividing up the state into exclusive territories. However, Citizens for Energy Choices, an Alachua County-based group, is pushing a constitutional amendment to deregulate investor-owned utilities. This amendment would allow Florida residents to buy electricity from any third-party supplier, giving them the power to choose their electricity provider. While proponents of deregulation argue that it can lead to potential savings, better customer service, and increased economic growth, there are concerns that it could also significantly increase costs for the state and local governments.
Deregulation of the electricity industry in Florida could increase costs for the state in several ways. Firstly, the amendment could result in a loss of revenue for the state as residents would be able to choose their electricity suppliers, potentially leading to a decrease in tax revenue for the state and local governments. Additionally, the cost of electricity could increase for residents if the new suppliers pass on the cost of doing business in Florida to their customers. This is a common concern in deregulated energy markets, where residents may face higher electricity rates and additional fees, such as early termination fees, when switching suppliers.
Furthermore, the deregulation of the electricity industry in Florida could lead to increased costs for the state in terms of infrastructure and emergency management. Currently, utility companies own and operate the utility poles and power lines, and are responsible for managing emergency power restorations and repairs. In a deregulated market, there may be a need for additional infrastructure to accommodate multiple suppliers, and coordination of emergency response efforts could become more complex and costly.
Another way deregulation could increase costs for the state is through the potential impact on renewable energy initiatives. While residents may have the option to choose renewable energy suppliers, there is no guarantee that these suppliers will be able to compete with more established, non-renewable energy companies. This could result in a decrease in investment in renewable energy infrastructure and a continued reliance on fossil fuels, leading to increased costs associated with environmental impacts and climate change.
Finally, the deregulation of the electricity industry could have indirect costs for the state by impacting other industries and sectors. For example, the electricity industry has interdependencies with transportation, communications, and utility industries, which could be affected by changes in the energy market. Additionally, the potential increase in costs for residents' electric bills could have a ripple effect on the economy, as residents may have less disposable income to spend in other sectors.
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How to switch electricity providers
As of 2024, 31 US states have some level of energy choice, meaning that consumers can choose their energy providers. However, Florida is not one of these states. Currently, Florida is a regulated monopoly, with the largest electric companies dividing up the state into regions. Duke Energy, for instance, services Central Florida, while FP&L covers the east coast, Tampa Electric has the west, and Gulf Power serves the Panhandle.
There are groups pushing for a constitutional amendment to deregulate Florida's energy market, but this has not yet been passed. Therefore, it is not possible to change electric companies in Florida at this time. If you are unsure about whether your state is regulated or deregulated, you can use tools that allow you to enter your zip code and find out.
If you do live in a deregulated market, you can switch your electric company or plan. However, doing so may result in an early termination fee (ETF) if you have a fixed-rate plan. Fixed-rate plans often have such a fee to encourage customers to stick with the plan for the entire duration. Check your Electricity Facts Label to determine if you’ll incur a fee if you switch electricity providers.
If you are considering switching energy suppliers, it is important to gather all the relevant information first. You should check your current rates and understand your energy bill. Your current energy provider should provide you with a bill every month that explains all of your charges and current electricity rates. You should also consider the type of plan you want (fixed, variable, or indexed). A fixed-rate electricity plan charges the same rate per kilowatt-hour (kWh) of electricity for the term of your agreement, while a variable-rate plan can change every month, and an indexed rate plan is tied to a published market price, like the cost of natural gas.
Once you have found a new plan that suits your needs, you can enroll with the new energy supplier. Your old electricity supplier will be alerted that you have switched, and your new supplier will change your energy supply to their services. You can expect to get notifications when your power is switched to the new plan and when you should expect your first bill from the new supplier. This process usually takes around 2-4 weeks, depending on your location and the supplier.
It is important to note that you should not cancel your existing energy plan until the switch is complete to ensure that you have a continuous supply of energy during the switching process.
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Pros and cons of deregulation
In the United States, energy deregulation refers to a new structure for energy markets in which consumers can choose their energy supplier and plan, instead of being limited to a single utility provider. As of 2025, nearly half of US states have introduced some degree of energy deregulation.
The state of Florida has been considering a proposed constitutional amendment to deregulate its energy market. This has sparked a debate about the pros and cons of energy deregulation.
Pros of Deregulation
Deregulated energy markets encourage innovation and efficiency while fostering consumer empowerment. Consumers have the freedom to choose their energy supplier and plan, and are no longer limited by their location. This freedom of choice also extends to contract details. With more suppliers competing for customers, there is more variety in energy sources, plan types, and contract terms. This competition among suppliers can drive lower energy rates and improved customer service.
Cons of Deregulation
Energy deregulation can be confusing for consumers to navigate, as they now have more responsibility to understand their options. Electricity rates may not necessarily be cheaper in deregulated areas, and consumers must be engaged and informed to make the most of the available choices. Furthermore, the proposed deregulation in Florida has faced criticism for its potential negative impact on jobs in the energy sector, as well as concerns about its unclear language and potential to disrupt the current electric grid and industry.
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Frequently asked questions
Florida currently operates as a regulated monopoly, with the largest electric companies dividing up the state. However, there is a push to deregulate the state's electric grid, which would allow residents to choose their electricity supplier.
In a deregulated energy market, multiple electricity suppliers compete for your business, offering different rates and plans. This competition can drive innovation and better services, and allow consumers to choose a plan that suits their specific needs.
Currently, your electricity provider in Florida is determined by your geographic location. However, if the state's energy market is deregulated, you can switch providers by enrolling with a new energy supplier. Your old electricity supplier will be alerted, and your new supplier will change your energy supply to their services.
