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What Is a Third-Party Electric Supplier?

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  • What Is a Third-Party Electric Supplier?
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A third-party electricity supplier is a company that sells electricity directly to consumers, separate from the local utility. While your utility still delivers the electricity and maintains the infrastructure, a third-party supplier sets the rate you pay for the electricity itself and may offer different pricing plans, contract terms, or renewable energy options. This gives customers in deregulated markets the ability to shop around and choose an energy plan that best fits their needs.

Table of contents:

  • Which States Have Third-Party Electric Suppliers?
  • What are the Benefits of a Third-Party Electric Supplier?
  • How Do You Find Third-Party Electric Suppliers in Your Area?
  • What is the Third-Party Electric Charge on Your Utility Bill?
  • How Do You Switch Third Party Electricity Suppliers?
  • Is Constellation a Good Fit for Your Energy Needs?

Which States Have Third-Party Electric Suppliers?

What states have third party electric suppliers?

According to the EPA, the following states currently offer energy choice to residents:

California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Texas, and Washington, D.C.

In these deregulated markets, utilities are responsible for delivering electricity, while third-party energy suppliers sell the electricity and may offer additional services such as fixed-rate plans or renewable energy options. This system gives consumers more control over their energy choices and pricing.

What are the Benefits of a Third-Party Electric Supplier?

Third-party electric suppliers offer several benefits, including competitive pricing, flexible contract terms, and improved customer service. They give you more control over your electricity costs, help reduce the risk of hidden fees or surprise charges, and often provide innovative contract options. Additionally, they manage the complexities of power procurement on your behalf, making the process simpler for consumers.

How Do You Find Third-Party Electric Suppliers in Your Area? 

  1. Find licensed 3rd party electric suppliers for your area. Public Utility Commission websites and City or utility company sites usually provide current listings.
  2. Visit each electric provider’s website to learn more about their business, how long they have been serving customers, what their power sources are and options for contract terms.
  3. Visit ratings sites to see how consumers rate the quality of their customer service.
  4. Study your power consumption needs. There are options that may save you money, depending on your usage patterns. Or maybe you want renewable energy options. Learn about calculating electricity charges. Know what you want so you can identify the best deal for you.
  5. Most importantly, study the contract terms closely, as they are not one-size-fits-all. Make sure you understand the details before you commit.

What is the Third-Party Electric Charge on Your Utility Bill?

The third-party electric charge on your utility bill reflects the cost of electricity supplied by a supplier other than your local utility. This charge is separate from the utility’s delivery fees and simply shows what you’re paying per kilowatt hour (kWh) for the electricity supply itself. It doesn’t necessarily mean you're paying more, just that a third-party supplier is providing your power.

To fully understand the charge, check the rate per kWh listed on your bill and compare it to current market options. If you have questions, contact the supplier named on your bill. You may also want to explore other third-party providers, as switching energy suppliers is usually simple and could help you save money.

How Do You Switch Third Party Electric Suppliers?

To switch third-party electric suppliers, you simply choose a new provider and enroll in their plan. Your new supplier will coordinate the switch with your utility, so there’s no service interruption.

Before switching, review key details such as those listed below: 

  • Contract term: How long will it run?
  • Minimum bill amounts: What is the minimum you will have to pay every month?
  • Fixed vs. variable rates: Which makes the most sense for you?
  • Customer service: How can you reach them and how fast do they respond?
  • Billing: How will you be billed? How often?
  • Early Termination Fees (ETFs): What will you pay if you end the contract early?

Is Constellation a Good Fit for Your Energy Needs?

We invite you to check out Constellation’s ratings for customer service and then explore our website. You’ll learn about our commitment to customers, and information about our many contract options. You can get the details about Constellation’s electricity plans by state.

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© 2025 Constellation. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC, Constellation Connect, LLC or Constellation Home Products & Services, LLC (d/b/a Constellation Home in Maryland and d/b/a Constellation in Georgia, Pennsylvania and Texas), each affiliates of each other. The prices of Constellation are not regulated by any state Public Utility Commission. You do not have to buy Constellation electricity, natural gas or any other products to receive the same quality regulated service from your local utility. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. 

Electricity or Gas Supplier License/Order #s and Home Services #s: CA 1359, CTA0032; CT 06-07-11, 01-06; DE 00-162; DC GA06-2, EA01-5; GA GM-46; IL 16-0205, 17-0330; IA G-0010; ME 2000-989; MD IR-655, IR-311, IR-500; MA GS-030, CS-015; MI U-14867, U-13660; NE NG-0043; NH DM 17-024; NJ GSL-0101, ESL-0016; OH 09-153G, 00-003E; PA A-125095, A-110036; OR ES4, RI 2379(Z1), D-96-6(E); TX 10014, B07305101; VA G-26, G-51, E-11A; TX Licenses HVAC TACLA 00107498R, Electrical TECL 343159, Service Plan TSCP #684, Plumbing #43217; GA REG CN-211051