MA May See Crippling Utility Rate Hikes This Winter, Suppliers Warn

MASSACHUSETTS — The two main utility companies providing electric and natural gas service in Massachusetts are warning of likely major rate increases coming this winter.

Eversource said Wednesday it is asking the state Department of Public Utilities to approve a new rate increase due to global natural gas shortages. For customers in the former NSTAR Gas Company area between Boston and Worcester, Eversource wants to boost rates as much as 38 percent per month for the average customer.

The potential Eversource increase comes on top of a 22 percent increase last winter, according to the state Department of Energy Resources.

Electrical provider National Grid said Wednesday it will also ask the state to double supply rates this winter: from last winter's 14.82 cents per kilowatt-hour rate to 33.89 cents this winter. National Grid says natural gas costs are also driving its rate increase because the fossil fuel is the main energy source for the region's electrical grid. The increase will likely take place Nov. 1.

In a news release, Eversource said it's "working to support natural gas customers" with major price hikes on the horizon. But the utility has few short-term solutions for most customers, except payment plans and a calculator that shows how much money you can save by turning down the thermostat. The utility also offers home energy assessments and loans and rebates for costly and major upgrades, like installing heat pumps.

"We are here and ready to connect our customers with resources like energy efficiency solutions, payment assistance plans and other customer support programs that can help offset some of the effects of that rising global energy costs are having on everyone,"Eversource Vice President Penni Conner said in a news release.

On the electric side, customers do have some quick savings options. Many municipalities in Massachusetts offer aggregation programs, where cities and towns procure electricity for residents. Otherwise, you pay National Grid to procure energy, which is more expensive over time.

For example, Worcester's aggregation program offers a electrical supply rate of 11.44 cents per kilowatt-hour versus National Grid's supply rate of 11.49 cents. Municipal aggregation rates can change, but typically not until a city or town's contract with an energy supplier expires. Find a list of Massachusetts municipal aggregation programs here.

But supply rates are only one side of your electric bill. Customers also pay Natural Grid a host of monthly fees, including the main electric distribution rate of 7.51 cents per kilowatt-hour.

The Russian invasion of Ukraine has a main role in utility price hikes. European countries have mostly stopped buying natural gas from Russia as punishment for the war. Now, Europe is buying more natural gas from the U.S. and Canada, creating a tighter local supply, according to the Wall Street Journal.

The war has only compounded a longstanding natural gas problem in New England: the region doesn't have enough gas pipelines to keep up with demand, according to the energy regulator ISO New England.