Danvers Electric Rates To Rise Nearly 3 Percent In 2022

DANVERS, MA — Danvers residents will be paying an average of about 3 percent more in power costs in 2022 after the Municipal Light Board gave the go-ahead for a rate increase.

The Board said the increase is necessary to offset a projected increase in energy costs over the next 12 months. The 2.87 percent increase will raise the average home's energy cost by about $3.15 per month, according to the town.

The Board voted to increase the fuel charge from $0.0528 to $0.0570 per kWh for residential customers and from $0.0552 to $0.0610 per kWh for all other customers. The "customer charge" that goes toward maintaining infrastructure will not increase at this time.

"The customer charge in Danvers is well below both the industry-standard as well as what was recommended in the 2019 Cost of Service Study," MLB Chair Bill Hayes said. "However, due to the market-based increase to the fuel charge, any adjustment to the customer charge was deferred to a future discussion."

The Board said Danvers Electric rates are set to cover costs and not to create a profit. Any excess revenue at the end of the year is returned to customers.

Cost and revenue projections will be reviewed in June to determine if any further rate adjustment is necessary.