The Texas electricity market hit a milestone this January, turning 10 years old. The success of the Texas experiment is largely recognized but critics remain. While customers have more choices and customizations than ever before, some experts argue rates would be lower under the old regulated utility model.

Regardless of the naysayers, other states are taking Texas’ lead and moving towards more robust electricity markets. One state in particular hopes 2012 will be the year electric choice takes off.

Todd Snitchler, Chairman of the Public Utility Commission of Ohio, lauded the benefits of a competitive electricity market. Last month he said, “. . . market forces have consistently led to lower rates. Ultimately, Ohio’s emerging competitive marketplace will provide families, business, and industry alike with new and innovative supplier options to meet their electricity needs.”

Consumers in the buckeye state have been free to shop for their electricity since 2001, but switching has largely been confined to large industrial consumers. As of October only 34.8 percent of residential customers have switched. What’s holding Ohio back? It could be the limited number of active providers. PUCO staff estimate of the 33 registered Industrial and Commercial Providers only 11 are active. The PUCO apples to apples electric shopping chart lists only nine competitive suppliers for residential customers.

Recently American Electric Power (AEP), a utility that serves over one million Ohio customers, announced an agreement to acquire BlueStar Energy Holdings Inc. and its independent supplier BlueStar Energy Solutions. BlueStar, based in Chicago, already serves retail customers in Ohio and other deregulated markets. The company is known for its demand response and energy efficiency services.

AEP’s retail operations will largely benefit from BlueStar’s reputation and experience, but it’s difficult to know how or if consumers will also benefit from the merger. The real drawback in Ohio, as in many other deregulated markets is consumer awareness. While natural gas shopping is very common in the state, much of the retail shopping for electricity supply has occurred through opting out of municipal aggregation contracts. When a consumer opts out of a municipal or regional pool they return to the traditional utility provider, but that is not true choice. True choice is actively choosing the best electric supplier for your individual needs.

Ohio consumers are beginning to understand their options, but the PUCO has its work cut out for them in the new year. Perhaps in another ten years Ohio’s deregulated electricity market will rival the vigor and diversity of Texas.