If your business runs locations in more than one state, there's a good chance at least some of them are sitting on the default utility gas rate right now — and quietly paying more than they need to. It's the path of least resistance: no contract, no decisions, one bill a month. It's also, in most deregulated markets, the most expensive way to buy natural gas.

For a single storefront, the gap might be a rounding error. Across a dozen or fifty sites, it's a line item worth managing. Below we break down the three ways operators actually buy gas, where each one wins, and what it looks like when you stop defaulting and start procuring.

The short version: in a deregulated state, the default rate is rarely your best rate. Here's how to tell whether you're overpaying — and what to do about it.

First, know which markets you can actually shop

Natural gas deregulation is decided state by state, and it doesn't track electricity deregulation. Texas, for example, has one of the most competitive electricity markets in the country but keeps natural gas regulated. Georgia is the reverse — one of the only states with a fully open residential and commercial gas market. If you operate across multiple states, you're almost certainly holding a mix.

The distinction matters because it defines your leverage. In a regulated state, the utility is the only seller, and your only real lever on gas cost is efficiency. In a deregulated (retail-choice) state, you can buy the commodity from a competitive supplier while the utility still delivers it: which turns the default utility rate into a benchmark to beat, not a price to accept.

Open commercial gas choice markets are states where you can put your volume out to competitive suppliers and beat the utility default. These states are Georgia, New York, Pennsylvania, Ohio, Illinois, New Jersey, Maryland, Michigan, Virginia, California, Colorado, New Hampshire, Rhode Island, West Virginia, Washington D.C.

‍Limited / territory-specific choice markets are states where choice exists, but only in certain utility territories or above certain usage thresholds. These include, Massachusetts, Florida, Indiana, Kentucky, Montana, Nebraska, New Mexico, Wyoming, South Dakota

‍Regulated  markets are states where there is no competitive gas supplier and the utility sets the rate. Alabama, Arizona, Arkansas, Louisiana, Mississippi, Oklahoma, and most others not listed above.

Your three options — and when each one wins

1. Stay on the default utility rate

The utility buys the gas, delivers it, and bills you, all in one place. In regulated states, it's your only option. In deregulated states, it's the "do nothing" choice.

When it makes sense: regulated markets; usage so small the savings won't clear the effort; operators who genuinely value zero admin over price.

The catch: default rates are pass-through. You ride the market up with no ability to hedge, and utility pricing often lags the market — so you can overpay for months without ever seeing it. No budget predictability, no risk management, no strategy.

2. Contract directly with an independent supplier

A licensed supplier sells you the commodity; your utility still owns the pipes, the meter, and delivery. Reliability doesn't change — only who sets the price and sends the bill. Most operators go fixed-rate (lock a price per unit for the term). Some use hybrid or block structures — fix part of the volume, float the rest — to balance certainty against the chance of catching a lower price.

When it makes sense: deregulated markets where you want budget certainty and a rate that beats the utility default.

The catch: someone has to run the process — solicit offers, compare terms, track renewal dates, and read the fine print to dodge predatory auto-renewals. Multiply that across every site and every state, and it's real, recurring work.

3. Aggregated or brokered procurement

Pool your demand with other buyers, or bring in a broker who negotiates on your behalf. Scale unlocks better pricing; expertise unlocks better terms and saved time.

When it makes sense: multi-location operators who don't have an in-house energy team and don't want to build one.

The catch: not every broker is aligned with you. Many are paid by the suppliers they place you with — a structure that quietly works against getting you the lowest rate. Always ask how a broker gets paid before you sign anything.

What this looks like in practice: Sandbox VR

Take Sandbox VR, a fast-growing VR entertainment operator with sites across 30+ locations in 10+ states. [Before working with TrueMeter, several of their locations were sitting on default utility gas rates they'd never revisited.

We ran a competitive rate auction across licensed suppliers in their deregulated markets, putting their combined volume in front of multiple suppliers and letting them bid it down. The result: 10%+ in reduction in their gas rates.

Same gas. Same pipelines. Same reliability. A different price, because someone actually shopped it.

How TrueMeter works

We're your automated utility agent. Instead of you managing suppliers, contracts, and renewal dates across every state you operate in, we do one thing relentlessly: get you the lowest available gas rate and keep you there.

The mechanic is simple. We run competitive auctions across licensed suppliers in each of your deregulated states, put your volume up for bid, and pass the savings straight to you as a lower, fixed, predictable monthly payment instead of a volatile utility bill. We cover every site in your footprint, not just the biggest one, and we re-shop as contracts come up so you never drift back onto an overpriced rate.

And because we work for you (not the suppliers) our only job is cutting your cost.

Tips for getting this right

• Match the contract to your strategy. Align fixed, index, or hybrid pricing with your risk tolerance and budget goals — not just whatever's quoted first.
• Know your usage. Review historical consumption before you sign, so contract volumes and terms actually fit how you operate.
• Guard your renewal dates. The most common way operators overpay is letting a good contract lapse into a bad auto-renewal.
• Ask how your broker gets paid. If the answer is "the supplier pays me," their incentives and yours aren't the same.

FAQs

If I switch to an independent supplier, does the utility still deliver the gas?

Yes. Your local utility continues to operate the pipelines and meters — the supplier only provides the commodity itself. There's no change to reliability of service.

What if market prices drop after I sign a fixed-rate contract?

You may pay above market temporarily, but many operators accept that trade for budget predictability. Hybrid or block contracts are a good way to balance the two.

How do I know if my state allows competitive suppliers?

Gas deregulation is state-specific and often utility-territory-specific on top of that. The table above is a starting point; the fastest way to know for certain is to have each site's account checked against its local utility's rules — which is something we handle for you.

I operate in several states with different rules. Does that make this harder?

It makes doing it yourself harder - different markets, suppliers, and renewal calendars per state. It's exactly the situation an automated agent is built for: one relationship, every eligible site shopped and re-shopped, savings passed through.

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