Which States Let Cannabis Facilities Shop for Electricity?
Seventeen states and Washington, D.C. have some form of retail electric choice, and state-licensed cannabis businesses are not excluded from it. In most territories on this site any commercial account can choose a competitive supplier for the generation portion of the bill while the utility keeps delivery. Michigan caps choice at 10 percent of each utility's sales, California admits non-residential customers through a capped Direct Access lottery, and Nevada allows large loads to exit NV Energy under NRS 704B.
By Jason Taken, Founder, Jaken Energy
Updated September 12, 2026The short map
Retail electric choice is a state decision. The U.S. Energy Information Administration reports that seventeen states and the District of Columbia had adopted retail choice programs allowing end-use customers to buy from competitive retail suppliers, with commercial and industrial customers the heaviest users [eia-tie-6250]. Every state hub on this site sits in one of those jurisdictions. State cannabis license type does not appear in any choice statute we reviewed. Eligibility turns on utility territory, customer class, and in a few states caps or load minimums.
| Jurisdiction | Can a licensed cannabis business shop supply? | Main constraint |
|---|---|---|
| Illinois, Ohio, Pennsylvania, New Jersey, New York, Maryland, Delaware, D.C. | Yes, in IOU territory | Supplier credit policies vary |
| Massachusetts, Connecticut, Rhode Island, Maine, New Hampshire | Yes, in IOU territory | Default rate reset timing |
| Michigan | Yes, if cap space exists | 10% cap; ~5,101 in queue [mi-mpsc-choice-2025] |
| California | Yes, non-residential only | DA load cap; June lottery [pge-direct-access] |
| Nevada | Only via 704B exit | 1 MW+ average load [nv-nrs-704b] |
| Texas | Yes, in ERCOT competitive areas | Not in munis/co-ops outside ERCOT [ercot-about] |
Use the state deregulation eligibility checker for a specific address, and read what is energy deregulation for how supply splits from delivery.
Full-choice states: Mid-Atlantic through Midwest
Illinois. ComEd and Ameren Illinois customers may choose an alternative retail electric supplier for supply. Plug In Illinois states that no one visits your site to flip a switch, service is not disrupted, and delivery charges are unchanged whether you switch or not [il-plugin-choice]. Illinois is among the states where a majority of commercial load had moved to competitive suppliers in the EIA's participation survey [eia-tie-6250].
Pennsylvania and New Jersey. Pennsylvania runs PAPowerSwitch as the official shopping site [pa-papowerswitch]. New Jersey's BPU publishes commercial shopping guidance and runs Basic Generation Service auctions for default supply [nj-bpu-commercial-shopping]. Both are PJM states where capacity pass-through language matters on every quote.
Ohio, Maryland, Delaware, and D.C. Full commercial choice with utility default service as the benchmark. Switching guides for each state are on this site under /how-to-switch-electricity-suppliers.
New York. ESCO choice is open to commercial customers through the Department of Public Service's energy competition program. Large cultivators face OCM energy reporting rules separate from whether they may shop supply.
New England: shop the supply, not the wires
Massachusetts, Connecticut, Rhode Island, Maine, and New Hampshire each allow competitive supply while the local utility delivers power and restores outages. Connecticut's Energize CT rate board publishes supplier comparisons. Maine's standard offer resets each January. New Hampshire resets default service in February and August. The EIA notes Connecticut had among the highest residential participation rates outside Texas, and commercial participation is substantial across the region [eia-tie-6250].
For a cannabis operator the New England wrinkle is default service volatility, not eligibility. A fixed supplier contract is often a bet against hourly or semi-annual default resets, especially for accounts large enough to sit on hourly pricing.
The three limited markets
Michigan. Public Act 286 caps alternative supplier load at 10 percent of each utility's average weather-adjusted retail sales [mi-mpsc-choice-2025]. The MPSC's 2026 status report says major utilities' programs were fully subscribed and about 5,101 customers remained in the queue statewide [mi-mpsc-choice-2025]. A cannabis cultivator that needs choice today may be waiting unless it acquires a meter already on an alternative supplier.
California. Direct Access reopened for non-residential customers under a load cap. PG&E accepts six-month notice forms during a June submission period and runs a lottery when demand exceeds available gigawatt-hours [pge-direct-access]. Residential customers cannot newly enroll. Planning a 2027 DA transfer for a new cultivation build requires hitting the June window six months ahead.
Nevada. General retail choice does not exist. NRS 704B lets an eligible customer with an average annual load of 1 megawatt or more apply to leave the utility for a licensed provider of new electric resources [nv-nrs-704b]. Large indoor grows may qualify; dispensaries and small facilities typically stay on NV Energy bundled service.
Texas: choice without a default
Inside ERCOT competitive areas, ERCOT administers retail switching for about 8 million premises [ercot-about]. Every customer selects a retail electric provider. Municipal utilities and cooperatives outside that footprint, including parts of Austin and San Antonio, do not participate. Texas low-THC and medical operators in ERCOT territory shop the same market as any other commercial load.
What cannabis operators still cannot shop
No state lets you shop delivery: distribution demand charges, rate class, line extensions, and outage response stay with the utility. No supplier changes your ratchet or your General Service vs. Large General Service classification.
Individual suppliers may decline cannabis accounts even where choice is legal. That is a commercial decision, not a regulatory ban. The FAQ on can cannabis businesses choose an electricity supplier covers refusal patterns and what to do when the first supplier says no.
New York ESCO choice and OCM reporting
New York commercial customers may buy supply from an Energy Service Company while the utility delivers power. Large cultivators also face OCM sustainability reporting through PowerScore. Shopping supply and filing compliance reports are separate workflows; eligibility for one does not exempt you from the other.
Delaware and Rhode Island commercial choice
Delaware and Rhode Island both participate in Mid-Atlantic retail choice programs for IOU customers. Cannabis operators follow the same enrollment rules as other commercial accounts. Default supply resets and price to compare publication schedules differ; read each state's switching guide on this site before you model savings.
When to use the eligibility checker versus a bill review
The state deregulation eligibility checker answers ZIP and utility territory questions quickly. A bill review confirms rate class, peak kW, and whether the account is already on a supplier. Send both when you engage a broker: territory eligibility plus load shape for pricing.
Ohio and Pennsylvania full commercial choice
Ohio Energy Choice Ohio and Pennsylvania PAPowerSwitch list licensed suppliers for IOU territories [puco-energy-choice] [pa-papowerswitch]. Cannabis cultivation and retail licenses do not appear in eligibility exclusions. Credit review and supplier industry policy still gate access. Default service in both states resets on regulator-set schedules; shopping before a reset compares fixed offers to a published benchmark.
Maine and New Hampshire reset calendars
Maine standard offer resets each January. New Hampshire default service updates in February and August [nh-doe-choosing-supplier]. A cultivator signing a fixed contract in March in Maine hedges the next January reset if the term spans that month. Track reset dates on the same calendar as contract notice windows.
Washington D.C. Pepco choice
District of Columbia participates in retail choice for Pepco DC customers. Cannabis operators follow commercial enrollment rules like other Pepco accounts. Delivery stays with Pepco; supply is shoppable. Confirm account is not on a federal campus master meter with special tariff treatment before you model savings [eia-tie-6250].
Texas municipal exceptions inside a choice state
ERCOT competitive areas cover most of the state load [ercot-about]. Austin, San Antonio, El Paso, and many municipal utilities sit outside that market. A Texas cannabis operator must confirm ESI ID territory before assuming REP choice. Inside ERCOT, every customer picks a REP; there is no utility default supply to benchmark against a Price to Compare.
Maryland and Delaware commercial shopping
Maryland PSC runs electric choice for IOU customers with supplier licensing under COMAR [md-comar-20-51]. Delaware commercial customers in Delmarva Power territory may shop supply similarly. Cannabis license type is not excluded. Credit and supplier industry policy still apply. Delivery remains fully regulated on the utility bill.
Documenting eligibility for your board
Save a screenshot of the official shopping portal result, the relevant bill page showing rate class, and the supplier eligibility confirmation email. When a board asks whether the company can shop, those three artifacts answer faster than a generic state map [eia-tie-6250].
Co-op and municipal quick test
If your bill lists one company for generation, transmission, and distribution with no shopping portal line, you are likely on a bundled co-op or municipal tariff. The seventeen-state EIA count includes states where only part of the state has choice [eia-tie-6250]. Confirm serving utility on the bill header, not mailing address state alone.
Rhode Island and Delaware IOU territories
Rhode Island commercial customers in National Grid Rhode Island territory may shop supply like other New England IOU accounts. Delaware Delmarva Power commercial accounts participate in the Mid-Atlantic choice model. Confirm serving utility on the bill; municipal exceptions exist inside both states [eia-tie-6250].
New Jersey BGS and cultivation load
New Jersey commercial customers shop supply on IOU territories while delivery stays regulated [nj-bpu-commercial-shopping]. Large indoor cultivators present industrial kWh with commercial or industrial rate classes depending on utility assignment. Eligibility is by territory, not by license type [eia-tie-6250].
Zip code versus service territory
A site mailing address can show one city while the meter sits in a municipal utility pocket inside a choice state. Use the bill utility logo, not Google Maps state label, to determine eligibility [eia-tie-6250].
Frequently asked questions
Is Illinois electricity deregulated for cannabis cultivation businesses?
Yes, for supply. Customers in ComEd and Ameren Illinois territories can choose an alternative retail electric supplier for the generation portion of the bill while the utility continues delivery, outage response, and metering. Plug In Illinois states that switching does not disrupt service and that delivery charges stay the same whether or not you switch. Cannabis license type is not a barrier in the choice rules themselves, though individual suppliers set their own credit policies.
Can businesses shop for electricity in Ohio, Pennsylvania, and Maryland?
Yes. Pennsylvania's PAPowerSwitch site is the official shopping portal for the PUC, and most Pennsylvania customers can choose an electric generation supplier. Ohio runs Energy Choice Ohio for competitive retail electric service. Maryland's PSC operates an electric choice program where licensed suppliers compete on supply while the utility delivers. In all three, a state-licensed cannabis facility is a commercial customer like any other for choice purposes.
Can cannabis facilities shop in Massachusetts, Connecticut, Rhode Island, New Hampshire, and Maine?
Yes, for supply in investor-owned utility territories. Massachusetts, Connecticut, Maine, New Hampshire, and Rhode Island each have retail choice programs where you may buy generation from a licensed competitive supplier or stay on the utility default. Delivery remains regulated. New England default service resets on schedules that vary by state, so the shopping window matters as much as eligibility. Municipal utilities and co-ops may not participate.
What about Michigan's 10 percent cap and waiting list?
Michigan allows retail open access but caps participation at 10 percent of each utility's average weather-adjusted retail sales from the prior year. The MPSC's February 2026 report states that DTE, Consumers Energy, and other major utilities' choice programs were fully subscribed at the cap, with approximately 5,101 customers statewide in the queue waiting for space. A new cannabis facility that wants choice in Michigan may need to join the queue or wait for attrition unless legislation changes the cap.
Does California Direct Access have a lottery?
Yes. PG&E's Direct Access program is limited to non-residential customers under a statewide load cap of 11,393 gigawatt-hours. New customers submit a six-month notice during a submission period held in June each year and enter a lottery for available load space. Residential customers are not eligible for new enrollment. A cannabis cultivator or manufacturer in PG&E territory must plan around the June window and the wait list if it wants to leave bundled service.
Can a Nevada grow leave NV Energy under NRS 704B?
Possibly, if it qualifies as an eligible customer. NRS 704B defines an eligible customer as an end-use customer with an average annual load of 1 megawatt or more in the utility's service territory, among other categories. The customer must apply to the Public Utilities Commission of Nevada for approval of a transaction with a licensed provider of new electric resources. This is not general retail choice. A typical dispensary or small craft grow will not meet the load threshold.
Which parts of Texas are deregulated?
Retail competition applies inside the ERCOT competitive areas, where ERCOT administers retail switching for about 8 million premises representing roughly 90 percent of the state's electric load. Austin, San Antonio, El Paso, and many municipal and cooperative territories are outside that market and do not offer the same supplier choice. Inside ERCOT, every customer chooses a retail electric provider. There is no utility default supply to fall back on in those competitive areas.
Does Washington, D.C. have electric choice?
Yes. D.C. is one of the seventeen states and jurisdictions the EIA identifies as having adopted retail choice programs, and commercial customers have been heavy users of competitive supply in the Mid-Atlantic. Pepco DC customers can choose a third-party supplier for generation or take Standard Offer Service from the utility. Delivery and outage response stay with Pepco. Cannabis operators in D.C. follow the same supply shopping rules as other commercial accounts.
Related reading
- What Is Energy Deregulation? How Electricity Choice Works for Commercial Customers
How deregulation splits supply from delivery, who gets to choose a supplier, what the utility still does, and where cannabis businesses can shop in 17 markets.
- State Deregulation Eligibility Checker
Check whether your state has licensed cannabis and commercial electricity supplier choice for cultivation, extraction, dispensary, or multi-site operators.
- Can Cannabis Businesses Choose Their Electricity Supplier?
Whether grows and dispensaries can shop for electricity supply in deregulated states, what suppliers may ask, and what stays with the utility after you switch.
- How to Switch Electricity Suppliers in Illinois: A Step-by-Step Guide for Cannabis Businesses
How a ComEd or Ameren business enrolls with an ICC-certified supplier: eligibility, Price to Compare, enrollment, meter-read timing, and contract rules.
- How to Switch Electricity Suppliers in Pennsylvania: A Step-by-Step Guide for Cannabis Businesses
How a PECO, PPL, or Duquesne business enrolls with a PUC-licensed EGS: eligibility, Price to Compare, enrollment, meter-read timing, and contract rules.
- How to Switch Retail Electric Providers in Texas: A Step-by-Step Guide for Cannabis and Hemp Businesses
Step-by-step Texas REP switching for TCUP and hemp accounts: ESI ID enrollment, Oncor TDU pass-throughs, contract types, and 4CP planning.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-tie-6250], refer to the entries below. Links open the primary source in a new tab.
- [eia-tie-6250]State electric retail choice programs are popular with commercial and industrial customers (Today in Energy, May 14, 2012) — U.S. Energy Information Administration. Accessed 2026-09-12.
- [il-plugin-choice]Electric Choice Basics — Illinois Commerce Commission (Plug In Illinois). Accessed 2026-09-12.
- [mi-mpsc-choice-2025]Status of Electric Competition in Michigan (February 1, 2026) — Michigan Public Service Commission. Accessed 2026-09-12.
- [pge-direct-access]Direct Access (DA) — Pacific Gas and Electric Company. Accessed 2026-09-12.
- [nv-nrs-704b]Nevada Revised Statutes Chapter 704B: Providers of New Electric Resources — Nevada Legislature. Accessed 2026-09-12.
- [ercot-about]About ERCOT — Electric Reliability Council of Texas. Accessed 2026-09-12.
- [pa-papowerswitch]PAPowerSwitch: The Official Electric Shopping Website of the Pennsylvania Public Utility Commission — Pennsylvania Public Utility Commission. Accessed 2026-09-12.
- [nj-bpu-commercial-shopping]Commercial Customers: Shopping for Energy — New Jersey Board of Public Utilities. Accessed 2026-09-12.
- [ct-energizect-faqs]Rate Board FAQs — Energize Connecticut. Accessed 2026-09-12.