BOSTON –– Massachusetts electric customers had 68 fixed-rate offers from competitive energy suppliers in May that were less than the standard supply rate offered by utility companies in the state’s seven service territories. The average rate for the competitive energy supply offers was 11.86 cents a kilowatt hour (kWh), while the collective average rate of the seven utility companies was 13.57 cents a kWh. Customers who shopped for the lowest competitive energy supply offer could have saved an average of more than 12 percent on their electric bill.

If a residential customer uses 1,000 kWh of electricity a month, the statewide average supply savings in May would have been nearly $15 for the month.

All Massachusetts electric customers could have collectively saved more than $20 million in May if every customer enrolled with a competitive electric supplier that offered the lowest rate in their area.

A total of 255 competitive electric supply offers were available in May. Customers had 139 green energy supply offers above renewable portfolio standards (RPS) to choose from.

This monthly rate summary analysis can be found here. 

Data for this analysis is sourced from Massachusetts’ state-managed energy shopping website, EnergySwitchMA.gov.

Harrisburg, PA –– The Retail Energy Advancement League (REAL) has issued the following statement in response to the development and publishing of R Street Institute’s State-By-State Scorecard on Electricity Competition. The following statement can be attributed to Chris Ercoli, the president and CEO of the Retail Energy Advancement League (REAL). 

“The Retail Energy Advancement League is excited about this new resource that R Street Institute has created to help state leaders improve energy markets for consumers. 

“This scorecard offers lawmakers and regulators in almost every state a clear, comparative assessment of how well they’re serving residents with electricity options — and, more importantly, where there’s room for improvement.

“The results of this state-by-state analysis further highlight the limitations of monopoly utility markets when compared to restructured markets. Competition applies downward pressure on prices, drives innovation, empowers consumers, and enhances accountability — all while reducing exposure to unnecessary utility risks.

“While the letter grades provide a benchmark, the scorecard’s true value lies in identifying where states may be underperforming and how they can learn from one another to deliver better outcomes for electric customers.

“R Street has produced a valuable resource with this scorecard, especially at a time when state leaders are attempting to address energy affordability and reliability concerns. We believe it is in the best interest of state leaders to work toward enhancing electricity competition while improving consumer benefits –– and ultimately reaching A+ status.“

The R Street Institute’s State-By-State Scorecard on Electricity Competition can be found here.

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When it comes to managing your home or business energy costs, predictability is power. That’s why choosing a multi-year contract can be one of your smartest moves –– especially in a volatile market.

Instead of worrying about market trends or renewal deadlines every few months, these contracts allow residential customers and small business owners one less thing to think about. They can set it and forget it, while staying protected. That means better financial planning and no shock when their bill arrives.

What is a Multi-Year Contract?

A multi-year contract is a long-term agreement between a customer and their chosen energy supplier that locks in a fixed price for a customer’s electricity or natural gas supply over a defined term length, with 12, 24, and 36 months as the most popular term lengths. Customers can budget for their energy expenses with peace of mind knowing their rate won’t change for the length of the contract.

These contracts shield buyers from market fluctuations by providing price stability and cost predictability –– but that’s not all they can provide. Multi-year contracts can include value-added services such as:

• Electricity generated by 100% renewable energy
• Bill credit if their monthly usage equals or exceeds a predetermined number of kilowatt hours per month
• Smart home technology product

Looking Ahead

While long-term, fixed price contracts provide multiple benefits, just like with any contract, it is still important to carefully review the terms before signing on the dotted line. What customers should pay close attention to includes, but is not limited to, the following:

• Contract Start and End Date: Make sure to mark both these dates on your calendar so you’re well prepared, especially when the contract ends, so you can start planning for what to do after your contract ends. Depending on your state’s regulations, the supplier will provide the date when the supply service will change.
• Automatic Renewal: Some multi-year contracts include automatic renewals, so once your current contract ends, you could automatically be renewed with the same supplier. However, your current contract terms may no longer be available. The renewal could potentially include different terms or a new price. Your supplier is required to provide a renewal notice and renewal terms for your review prior to the expiration of the original contract, which will include any updated terms and/or changes to your rate. It’s important to check your contract, as noted above, for the renewal date and any notice period required to avoid being locked into a new term you didn’t intend to agree to.
• Terms of Service (TOS) and Contract Summary: The plan’s TOS document outlines the terms and conditions of your service with the supplier, while the contract summary provides a full, detailed breakdown of the plan.

With growing concerns about rising electricity costs and energy affordability, multi-year, fixed-price contracts can provide peace of mind. They enable consumers to lock in a stable rate, allowing them to budget accordingly and shield themselves from unexpected price hikes. Energy prices can fluctuate, but if you choose a long-term fixed rate, your bill will be more predictable.