Massachusetts Electricity Rates: Compare Prices Fast
Massachusetts has a relatively low population of 6.9 million, 44th in the United States, and generates less electricity than other states. Almost 70% of the state’s electricity comes from natural gas and coal, while the rest is from nuclear power and renewable energy. Energy deregulation has allowed everyone in the state to shop for various Massachusetts electricity rates, and choose among different electricity plans. Here’s how Massachusetts’ electricity market works, and how to save money and get the best Massachusetts electricity rates.
General Information on Massachusetts Electricity Rates
Not all of Massachusetts is deregulated; only limited areas have the benefit of Energy Choice. Massachusetts residents who can choose their energy supplier can choose from several companies. Competitive supplier rates have helped reduce overall electric rates, and people are now looking towards renewable energy options.
For all Massachusetts residents, the electricity bill is divided into two main categories – supply services and delivery services.
The supplier services include electricity generation from various sources. Their electric rates depend on the total cost of producing power. Massachusetts has several utility companies, and in each service area, different energy suppliers offer various rates and energy plans. The total energy costs of suppliers include the price per kilowatt-hour (kWh), early termination fees, and cancelation fees, among other charges.
The delivery service is handled by your local utility company, and they deliver your electricity, maintain the transmission network, and manage power outages. The delivery charges include the cost of delivery and maintenance. Additional charges may consist of transition charges and other development-based charges allowed by the Massachusetts Department of Public Utilities (DPU).
Most people in Massachusetts come under the service area of Eversource Energy (formerly NSTAR and WMECo) that also provides services in Connecticut and New Hampshire. Other than that, National Grid and Unitil (Fitchburg Gas & Electric) also serve some areas.
You can learn more about Massachusetts electricity rates and tariffs here.
Energy Deregulation and How It Affects Massachusetts Electricity Rates
The Electric Industry Restructuring Act helped deregulate the Massachusetts energy market in 1997. As a result, Massachusetts residents can choose among different energy providers.
While your electric utility company stays the same, customers can choose their electricity supply company. The Massachusetts electric market has seen a significant reduction in rates as more areas become deregulated, and as people opt for green energy plans.
If you don’t choose an electric company, you will receive the basic service package from your local utility company. The basic service energy rates are also your Price to Compare; you can use it to compare the rates and plans offered by other energy companies. The process will help you figure out the best Massachusetts electricity rates and plans in your service area.
Finding the Best Massachusetts Electricity Rates
All Massachusetts residents can choose their electricity supplier. You have to make sure that you opt for a plan that offers a rate that’s lower than your Price to Compare.
You can compare each energy company’s plans and rates to get the best plan. You can search and try to shop for rates yourself, but watch out for the fine print, hidden fees, and escalating rates once your term ends.
Alternatively, you can use Arbor’s free TrueRate Protection service to automatically find and switch to the best Massachusetts electricity rates in your area.
Arbor scans the market and gives you the best rates you can get in your service area. When your contract term is expiring, Arbor finds the best rate and switches you again. You always pay the best rate and never have to worry about overpaying for electricity ever again.
You can also use the free savings calculator to find out how much you could save in each case.
Understanding Massachusetts Electricity Rates and Plans
Every energy supply company offers different rates, term lengths, and benefits in their energy plans. You can change your energy supplier at any time, and it’s relatively simple to do so.
You can use your electric bill to check who supplies your electricity and what rate you’re currently getting. You can use Arbor to find the best rate in your area and switch to the lowest cost supplier quickly to save time.
You can use Arbor to find the best rate in your area by using our free savings calculator.
Furthermore, all customers can choose from different types of energy options and plans. These are the four plan options you’ll find in Massachusetts.
- Fixed-Rate Plans: Such plans help avoid seasonal fluctuation as you pay the same rate throughout the length of your contract. We recommend fixed-rate plans because they provide price certainty and minimize risk. But be careful: when your term expires, your rate becomes variable and can go up without notice. Arbor automatically keeps you on the best fixed-rate plan, so you don’t have to worry about rate hikes at the end of your term.
- Variable-Rate Plans: If you’re comfortable with variable rates that are tied directly to the energy market and can change at any time, you should opt for variable-rate plans.
- Prepaid Plans: Prepaid plans let you pay for the energy before you use it. You receive an alert that shows you how much balance you have left. You don’t have to make a deposit with this plan.
- Renewable Energy Plans: Some energy companies offer renewable energy options, while others offer Renewable Energy Credits (RECs).
- Incentive-Based Plans: Some companies offer electricity plans along with incentives, such as smart home devices and smart thermostat installation, among others.
Some plans may ask you for a deposit. However, plans available through Arbor never require a deposit.
How to Choose the Right Energy Supplier
Your utility company varies depending on where you live in Massachusetts, but it will always remain the same. However, you can choose what energy company supplies your electricity. You can use the Price to Compare or your current electric rate and use it to compare with the rates and plans offered by other companies.
After figuring out what plan provides the best Massachusetts electricity rates, you can make an informed decision.
You should also check out how you can save on your energy bill with your local utility company. But electricity is complicated, which is why people trust Arbor to manage their electricity service for them, so they always pay the best electricity rate available in Massachusetts.