Oklahoma may have some of the lowest electricity rates across the country, but a new study of retail electricity markets across the U.S. doesn’t give Oklahoma a high mark when it comes to fostering customer choice and market-based electricity options.
R Street Institute, a nonpartisan public policy research group gave Oklahoma a “D” in its State-by-State Scorecard on Electricity Competition. The study is considered to be the first comparative scorecard of its kind and reviewed such areas as regulatory frameworks, market structure, transparency and consumer education.
“Consumers demand choices and alternatives, and the provision of electricity shouldn’t be an exception to that expectation,” said Kent Chandler, R Street’s Resident Senior Fellow in Energy and Environmental Policy.
“States that embrace competition can deliver lower prices, greater innovation, and more responsive service,” Chandler said. “Our scorecard offers both a snapshot of where states stand today and a roadmap for how they can move forward.”
State Grades: A-: Texas. B+: District of Columbia, Illinois, Ohio, Pennsylvania.
B: Delaware, Maine, Rhode Island. B-: Massachusetts, New Hampshire, New Jersey.
C+: California, Connecticut, New York, Virginia.
C: Colorado, Maryland, Michigan. C-: Arizona, Hawaii, Montana, North Carolina, Oregon, Vermont.
D+: Arkansas, Kansas, Kentucky, Louisiana, Nevada, South Carolina.
D: Alaska, Florida, Georgia, Indiana, Iowa, Missouri, New Mexico, North Dakota, Oklahoma, South Dakota, Tennessee, Washington, West Virginia..
D-: Idaho, Minnesota, Mississippi, Utah, Wisconsin, Wyoming.
F: Alabama. Not Scored: Nebraska (entirely served by public power utilities).
Comments on why Oklahoma received a “D” in the study: Retail customers in Oklahoma do not have access to competitive retail electric suppliers. Most customers are served by utilities participating in the SSP RTO [Southwest Power Plant’s Regional Transmission Organization], which provides some insight into wholesale market conditions. The Oklahoma Corporation Commission website presents information on the complaint process, though it could be easier to locate. No information appears to be available on the number of complaints filed or resolved. Website information is made available in multiple languages. The state attorney general’s office is responsible for representing consumer interests in rate cases.
Recommendations: The Oklahoma state Legislature has seen bills introduced to provide retail electric choice options to customers in the state, and such efforts deserve careful attention. Oklahoma should ensure that consumers can easily access smart meter data and have the ability to easily share data with third-party service providers.
Why did Texas receive an “A-”? “The retail electric market in Texas is widely regarded as the most competitive among states that give customers a choice of suppliers,” stated the report.
Kansas was given a “D+” and the report said, “With the exception of not having opted out of FERC [Federal Energy Regulatory Commission] Order No. 719 on demand response, options for customers are sparse.”
A “D” was given New Mexico where the study stated, “Retail customers in New Mexico do not have competitive supply options.” The report also said there is limited transparency on wholesale operations.
R Street’s entire report can be accessed at www.rstreet.org/wp-content/ uploads/2025/05/Final-Study-No.-324.pdf.