Peabody Power Rates To Jump 9 Percent For Residents

PEABODY, MA — Peabody residents will soon see a big bump in their electric rates after more than a decade of no rate increases.

The Peabody Municipal Light Commission voted for a 9 percent increase in the residential rate and a 5 percent in the commercial rate at its most recent meeting. The PMLP said that will amount to between $5 and $10 per month for more renters and homeowners and still keeps the municipal rates in the city among the lowest in Massachusetts.

The PMLP said the rate increases are necessary to offset "rising fuel costs, supply chain issues, and help us become more environmentally sustainable."

"We have nearly depleted our bond surplus account over the last 10 years in order to keep these rates static," PMLP Manager Joe Anastasi told the Board in requesting the rate increase. "At this point we need to improve our revenue collection in 2022 and the next four years after to avoid further financial strain on our operating cash."

Anastasi said the national average increase in rates since Peabody last raised its rates was 24 percent and that the national expected increase in 2022 is 11 percent.

"Our goals are twofold," Anastasi said. "We wanted to be either the lowest or among the lowest in Massachusetts, especially among the surrounding communities.

"And, second, we want to ensure that we can continue to generate enough revenue to continue the same level of service that we have been providing, while also embarking on new ventures, including improving community outreach, new rate design and the advancement of our decarbonization efforts."

The Danvers Municipal Light Commission said this week it will not be raising rates in 2022, however it did last year to cover infrastructure maintenance and make up for lesser demand.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)