The supply rate on electric bills will increase between 11% and 16% depending on who your utility company is.

As utilities once again increase rates, it further underscores the need for consumers to have the ability to shop for more affordable options.

In some service territories, shoppers could save up to $50 a month if they are using 1,000 kWh of electricity. Recent heat waves have Bay Staters using more power as air conditioning units are running overtime. This is already causing bills to increase. The rate hike will make bills jump even higher.

Here are a few tips for shopping that can help you reduce electricity costs –– share these tips with family and friends to help them save too! For those less familiar with shopping for their electricity, here’s a link to a shopping guide that will walk you through how to shop.

• The state shopping website, managed by the Public Service Commission, is a great resource for comparing utility rates and product options. By visiting the website and entering your zip code, you can shop for products offered in your area.
• Locking in a retail supply offer can protect consumers from unexpected cost adjustments passed down by utilities. Shopping for a fixed rate also helps prevent any price adjustment during your contract term. 
• If you are looking for better price certainty over an extended period of time, you can search for competitive supply offers that last up to 36 months. 
• When comparing offers, take note of any additional fees such as monthly charges or enrollment or cancellation fees.
• Know what you want to shop for. Some consumers prefer to shop for the lowest price. Other consumers prefer to shop for specific renewable energy products. Consumers sometimes find 100% renewable energy products that are less than the basic utility service, which only has to meet a 69% renewable energy requirement.
• Be mindful of when your offer expires and what your contract terms are. If you stay with a supplier through the length of your contract, you can shop for another supplier, negotiate directly with the supplier for a new offer, or request to return to your basic utility service or a municipal program if available. Having a choice gives you options.

To shop for electricity, visit: EnergySwitchMA.gov.

For information about rate changes, visit: Mass.gov.

To learn more about how to support energy choice in Massachusetts, click here.

The post Massachusetts Electric Rates Are Increasing. Tips to Shop for Electricity. first appeared on Retail Energy Advancement League.

Just as homeowners deal with electric bills that can deliver real sticker shock, school districts face the same challenge.

A 2002 fact sheet from the U.S. Dept. of Energy found that K-12 schools nationwide were spending more than $6 billion annually on energy. In many school districts, the fact sheet states, energy costs were second only to salaries in district expenses.

Efforts to reduce energy costs for schools often focus on additional investments, such as facility upgrades or efficiency improvements. But what if there was another option to reduce costs –– an option on who supplies electricity to schools to secure a better price?

In the business community, companies often create aggregation programs to secure bulk purchasing power, better pricing, and more tailored energy products. This approach helps businesses better meet goals, specifically on cost with better price certainty.

Business Aggregation for Massachusetts Retailers

One example of this is the Retailers Association of Massachusetts (RAM) Fixed Rate Electricity Supply Program. RAM partners with a broker and an electric supplier to secure fixed-rate electric supply pricing for program participants, such as independent stores and restaurants. 

The program is designed to protect businesses against unexpected price fluctuations commonly experienced in the electricity market, enabling members to confidently budget their annual electricity costs and achieve savings compared to utility rates.

New Jersey school districts applied the same model in hopes of achieving the same results.

More Than 25 Years of Savings for New Jersey School Districts

In 1999, three major New Jersey education organizations joined together for ACES: the Alliance for Competitive Energy Services.

The New Jersey School Boards Association, New Jersey Association of School Business Organization, and NJ Association of School Administrators joined forces to capitalize on New Jersey’s energy market structure and offer a statewide program for all school districts to benefit from aggregate power purchases. 

After experiencing great success procuring electricity at cheaper prices, the Alliance began an aggregate program for natural gas procurement. 

Within a decade, the Alliance said ACES saved New Jersey school districts more than $250 million on energy bills.

Retail Aggregation Brings Results

The key benefit of business aggregation is that it provides entities with the economic benefits of bulk purchasing, such as reduced energy pricing and access to options otherwise only available to massive energy users.

Without a competitive market structure, schools and other public entities cannot leverage collective buying power — limiting cost savings and access to innovative energy solutions.

The post Energy Aggregation Isn’t Just for Businesses — Schools Benefit Too first appeared on Retail Energy Advancement League.

True market success goes beyond just the price per kWh because the price per kWh represents a bundled cost of one unit of electricity consumed. That cost incorporates fees, taxes, and distribution charges that are unique to each state and utility. It also doesn’t weigh a state’s access to different generation assets, which can easily alter the price. 

Context is needed when comparing raw data from state to state. Without it, the price rankings often reported on in news stories leave consumers with apples-to-oranges comparisons.

Price Isn’t the Same as Price Performance

Price per kWh is a snapshot of cost at a specific time and day, rather than an overall consumer value. It doesn’t account for the factors that drive long-term performance, resilience, or innovation the way that price performance does.

Price performance looks at how well a market delivers value relative to cost over time, which is missing when only considering price per kWh. 

States also cannot be equally compared just on price because no two states are the same. Consumers’ electric bills are comprised of a variety of different charges, many of which are directed by the state legislature.

Massachusetts is a state that demonstrates the difficulty in comparing prices to other states. The average residential electricity rate for Bay-Staters is just north of 30¢/kWh, ranking Massachusetts as the state with the third-highest average rate. According to WhatsInMyElectricBill.com, nearly 30% of a Massachusetts electric bill is public policy charges: residential assistance programs, energy efficiency, and renewable energy requirements. About 40% of the bill is the average distribution and transmission charge across the two main utilities. That leaves only about 30% of the bill for the actual cost of the electricity purchased and used.

By comparison, Idaho ranks number one for the best rate at less than half of Massachusetts’. Consumers in Idaho are required to pay for energy efficiency charges and even the closure of a coal plant; but the actual cost of the electric source is tiered into pricing levels for Idahoans based on energy usage and the time of year they are using it. 

Each state legislature and investor-owned utility has its own policy beliefs and priorities, which create differences among state electric bills.

The often untold story on price is when states are compared based on price performance. When factoring in all consumer classes, Idaho actually ranks third worst among all states for its change in electricity price from 2008-2024. During that time, Idaho’s average electric price increased by more than 67%. Massachusetts ranked about 15 states better with a price change over the same time of less than 50%.

When comparing state prices based on performance over time, a factor that should be considered is whether the state operates under a monopoly market run by investor-owned utilities or if the state has restructured the electric market in any way to welcome competition.

Downward Price Pressure from Competition

Pennsylvania leaders voted to restructure the state’s energy market in 1996. Competition in power generation and electric supply has provided consumers with more affordable electricity options, including products at a lower price than electricity sold in 1996. But more importantly for all consumers in Pennsylvania, competition has applied downward price pressure on the utilities –– which still sell electricity –– keeping all prices more affordable. In fact, Pennsylvania consumers who were still receiving their electricity from their utility in 2024 were saving about 20% on their electric supply compared to what the rate would have been when an inflation adjustment is applied to the 1996 rate. This is a demonstration of downward price pressure because competition is present, preventing monopoly utilities from charging uncontested rates. 

The effect of competition and downward price pressure can be found in all consumer class electricity prices. When comparing all monopoly utility states to competitive states, non-residential (industrial and commercial) electric prices increased by nearly 40% between 2008-2024 in monopoly states. In contrast, electric prices for that same consumer class slightly decreased by .3%.

In looking at the price performance over time, not only did monopoly states prices increase significantly over time, but the average price for monopoly states also surpassed the average price for competitive states –– which decreased over time. 

When attempting to compare electricity prices, it helps to understand what makes up the price that’s being compared, and just as important, how prices have performed over time in the states that are being compared. In the end, price per kWh only scratches the surface of what defines market success. Price performance gives a better picture by measuring long-term consumer value.

The post The Real Story Behind Electricity Price Comparisons first appeared on Retail Energy Advancement League.

BOSTON –– The average lowest price for electricity offered by competitive electric suppliers in October matched the average lowest price in October 2024. Competitive electric suppliers have offered electric plans priced well below the average utility rate in 2025, including September when the average price reached its lowest point in the past 12 months. This positive news for consumers comes after significant rate increases were imposed by Massachusetts’ major electric utility companies. Bay Staters who have shopped for electricity with a competitive electric supplier continue to benefit from saving money on their electric bill.

According to a new October rate summary analysis by My Energy Choice, retail electric suppliers had 142 fixed-rate offers available this month that were less than the utility company rates for Massachusetts customers to enroll in. The lowest retail offers available for customers ranged up to 2.27¢ per kiloWatt hour (kWh) cheaper than the utility rate.

Eversource customers in the BECO, CAMB and COMM service territories could save up to 12% on the supply portion of their bill, while National Grid customers in the MECO territory could save up to 14%. Those saving percentages would equate to about $18 to $22 a month for a customer that uses 1,000 kWh per month.

Collectively, Massachusetts residents could save as much as $16,967,282 this month by enrolling with a retail supplier.

Customers who prioritize green energy can also find offers for less than utility rates. The statewide average price for green offers (exceeding the state’s minimum clean energy requirement) in October was still 3% less than the statewide average utility rate.

A total of 243 competitive electric supply offers were available as of October 15. Customers had 104 100% renewable energy offers to choose from.

This monthly rate summary analysis can be found here. Massachusetts residents can review offers from competitive energy suppliers using the state shopping website EnergySwitchMA.gov. View a guide to shopping here.

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

The post New Analysis: Retail Electric Supply Rates Offered Massachusetts Customers Up to 14% in Savings on Electric Bills in October first appeared on Retail Energy Advancement League.

According to a new August rate summary analysis by My Energy Choice, retail electric suppliers have 132 fixed-rate offers available this month that are less than utility company rates for Massachusetts customers to enroll in. The lowest retail offers available in the state’s seven utility service territories range from .2¢ – 3.39¢ per kiloWatt hour (kWh) cheaper than the utility rate in each service territory. The statewide average savings customers could receive is ~16%.

Eversource customers in the BECO, CAMB and COMM service territories can save up to 23% on the supply portion of their bill, while National Grid customers in the WMECO territory can save up to 22%. Those saving percentages would equate to about $40 a month for a customer that uses 1,000 kWh per month.

Customers who prioritize green energy can also find offers for less than utility rates. The statewide average price for green offers (exceeding the state’s minimum clean energy requirement) in August was still 2¢ less than the statewide average utility rate.

A total of 241 competitive electric supply offers were available on August 13. Customers had 110 100% renewable energy offers to choose from.

This monthly rate summary analysis can be found here. Massachusetts residents can review offers from competitive energy suppliers using the state shopping website EnergySwitchMA.gov. View a guide to shopping here.

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

The post After August 1 Massachusetts Utility Rate Increases, Retail Supply Rates Could Save Consumers Up to 23% on Electric Bills first appeared on Retail Energy Advancement League.

As the summer heat continues and air conditioner usage remains in high demand, consumers can expect to see increases in their August electric bill. The new rate term will last through the end of January, impacting the first half of the upcoming winter heating season as well. Aside from adjusting the thermostat and using less electricity, the easiest way consumers can reduce their electric costs is by shopping for a retail electric supply product that is priced less than the utility rate.

In Massachusetts, customers can shop for the supply portion of their electric bill. More than 400,000 Massachusetts residents shop for their electricity individually to earn better rates, receive 100% renewable energy or enroll in a plan that is conducive to their lifestyle. Another roughly 1 million residents are enrolled in municipal aggregation plans, in which municipalities bundle their residents into a single plan served by a competitive supplier.

In July, the state’s electric supply shopping website (www.energyswitchma.gov) listed 58 fixed-rate offers from competitive energy suppliers that were less than the standard supply rate offered by utility companies — even before the August rate increases. The average July rate for competitive energy supply offers was 12.24 cents/kWh, while the average July utility rate was 13.72 cents/kWh. Customers who shop for the lowest competitive energy supply offer can save up to 20 percent on their electric bill. For a residential customer who uses 1,000 kWh of electricity a month, their potential monthly savings could be up more than $30.

More than 5,000 customers across the state have spoken out publicly about the benefits of the competitive electric market.

“With the rising costs of energy to heat and cool in New England, being able to find the best price is essential,” said Lorraine Merrick of Yarmouth.

“I have for years chosen energy suppliers; I am on a fixed income and this has helped out a great deal,” said Kathy Daigneau of Agawam.

“I cannot afford electricity through National Grid! My competitive supplier provides a rate that I can afford while providing a roof over my family and putting food on the table,” said Isabelle Parker of Athol. “If I am forced to go with National Grid then I will struggle to provide other life necessities to my family.”

“My choice of an alternative energy source is saving me about $200 a month,” said Elizabeth Brown of West Bridgewater. “A difference much appreciated by this 85-year-old widow.”
“I am extremely happy with my choice of electricity supplier, and have been with them many years with absolutely NO complaints!” said Christine Woynar of Orange. “I love that everyone has the option to choose and not be locked into the overpriced major companies.”

A total of 245 competitive electric supply offers were available in July. Customers had 109 100% green energy supply offers to choose from.

This monthly rate summary analysis can be found here. Massachusetts residents can review offers from competitive energy suppliers using the state shopping website EnergySwitchMA.gov. View a guide to shopping here. 

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

The post Eversource and National Grid Customers Face Electric Utility Rate Increases August 1 first appeared on Retail Energy Advancement League.

BOSTON –– Massachusetts electric customers had 34 fixed-rate offers from competitive energy suppliers in April 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 12.10 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 nearly 11 percent on their electric bill.

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

All Massachusetts electric customers could have collectively saved more than $22 million if every customer enrolled with a competitive electric supplier that offered the lowest rate in their area.

A total of 250 competitive electric supply offers were available in April, of which 34 were fixed-rate offers. Customers also had 137 green energy supply offers 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.

The post April Competitive Electric Supply Offers in Massachusetts Remain Cheaper Than Local Utility Rates  first appeared on Retail Energy Advancement League.

Missing from today’s press conference on energy affordability was the most important resource that is already available for Massachusetts residents looking for cost-savings: the ability for customers to shop. There are fixed-rate offers listed on the state shopping website (EnergySwitchMA.gov) below the utility price to compare rates in every service territory. 

Nearly 400,000 people shop for electricity in Massachusetts. If all utility enrolled ratepayers shopped for the lowest offers from competitive electric suppliers in 2024, more than $750 million could have collectively been saved. 

Governor Healey’s Energy Affordability Agenda can benefit from further expanding customer knowledge on how to shop for competitive electric suppliers. Competition has not only spurred innovation to the benefit of Massachusetts energy users, it has created a market where energy suppliers are competing for the business of customers, resulting in lower energy prices. 

The Retail Energy Advancement League (REAL) strongly encourages a renewed commitment to educate more residents on how they can save money by shopping for their electricity. We also urge Governor Healey to support Senate Bill 1519 and House Bill 659, legislation that will improve customer protection and enhance the competitive market.

In February, residential energy users statewide could have saved an average of 10 percent on their electric bill if they shopped for the lowest retail energy offer. Families that are shopping for their electricity are voicing their relief in having the ability to shop for a supplier that best supports their budget.

Nearly 1.5 million residential customers receive their electricity from a retail energy supplier. One-third of them (almost 13 percent of all electric customers) shopped for a supplier that offered the best product for their household and budget. The other two-thirds are served by competitive energy suppliers through their municipal aggregation program. Nearly 50 percent of the state’s entire electric load is supplied by competitive electric suppliers. 

Pennsylvania is a state Massachusetts can look to as a model on how to be successful at educating consumers on monthly energy bill savings.

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The post Energy Shopping Can Support Massachusetts Energy Affordability Initiatives first appeared on Retail Energy Advancement League.

If a residential customer uses 1,000 kWh of electricity a month, their February supply savings would have been $13.30.

February brought a new rate term for utility companies, dropping the monthly rate by 2.28 cents from the January collective average rate. Even with the rate drop, competitive energy suppliers still produced offers at lower rates.

All Massachusetts electric customers could have collectively saved more than $19 million if every customer enrolled with a competitive electric supplier that offered the lowest rate in their area. 

A total of 245 competitive electric supply offers were available in February, of which 117 were fixed-rate offers. Customers also had 128 green energy supply offers to choose from. In the National Grid – Massachusetts Electric Company (NGRID – MECO) service territory there were four green energy supply offers less than the NGRID – MECO utility supply rate. The lowest offer was .68 cents cheaper.

The monthly rate summary analysis can be found here. 

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

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The post February Competitive Electric Supply Offers in Massachusetts Remain Cheaper Than Utility Rates first appeared on Retail Energy Advancement League.

BOSTON –– A new analysis of Massachusetts residential electric rates reveals competitive energy suppliers offered an average lowest monthly fixed rate in 2024 that was five cents a kilowatt hour (kWh) less than the collective average monthly price to compare rate charged by the seven utilities, including Eversource and National Grid –– a cost savings of 31 percent. Additionally, rates for green energy –– electricity with green provisions exceeding the state minimum –– offered by competitive energy suppliers averaged 4.7 cents/kWh cheaper than the collective average utility rate –– a cost savings of 28 percent.

With an average energy use of 603 kWh a month for a household in Massachusetts, customers who enrolled with a competitive energy supplier in 2024 would have saved an average of $31 a month on their electric bills.

The analysis was conducted by the Retail Energy Advancement League (REAL) using offers posted on the state shopping website, EnergySwitchMA.gov, and comparative utility rates provided by the Commonwealth of Massachusetts. On average, Massachusetts residents had 114 monthly fixed rate options to choose from that were less than supply rates offered by Massachusetts utility service providers. If all residential energy users had switched to the lowest monthly retail offers, they could have collectively saved up to $763,037,771 in 2024.

“Without energy choice, consumers are handcuffed to the rates their utility providers want to charge them,” said Chris Ercoli, president and CEO of the Retail Energy Advancement League. “Having the ability to shop for your own energy –– and the type of energy you want supplied –– frees consumers of utility privilege that holds them hostage because of their zip code. As we continue to see increases in daily costs to live, retail energy is delivering alternatives to Massachusetts residents and opportunities to save.”

As of June 2024, more than 425,000 residential customers were enrolled with a competitive energy supplier. Approximately 111,000 enrolled in a new contract between January to June of last year.

A December 2024 report by the U.S. Energy Information Administration identified Massachusetts as having the third-highest residential electricity price in the nation in 2023. Massachusetts is also the third-highest importer of electricity. Because the Commonwealth consumes twice as much electricity than it produces, utilities purchase electricity from the regional wholesale energy market and distribute it to homes and businesses.

“Massachusetts electric utility providers are going to the energy market to purchase electricity and sell it back to consumers,” Ercoli continued. “Energy choice allows those same consumers to go to a market and shop themselves for cleaner and low fixed-priced alternatives.”

Efforts to close the residential retail market in Massachusetts were quashed last year by elected leaders who recognized the detriment of a market closure and harm it would energy customers. Market closure legislation would have banned Massachusetts energy consumers from signing up with a competitive retail electric supplier starting this month. 

“Closing an energy market is a disservice to the energy consumers of that state,” Ercoli said. “The priority should be to enhance the market with innovations, efficiencies and improved consumer protections.”

More than 5,000 Massachusetts energy consumers have contacted their state representatives fighting to protect their energy choices and sharing why they choose to shop. 

“My choice of an alternative energy source is saving me about $200 a month,” said Elizabeth Brown of West Bridgewater. “A difference much appreciated by this 85-year-old widow.” 

“I cannot afford electricity through National Grid! My competitive supplier provides a rate that I can afford while providing a roof over my family and putting food on the table,” said Isabelle Parker of Athol. “If I am forced to go with National Grid then I will struggle to provide other life necessities to my family.”

REAL is continuing to work with the state legislature to maintain customer energy choice and support reforms that further protect consumers, including Rep. Tackey Chan’s bill HD.659 and Sen. Patrick O’Connor’s bill SD.1519.

The post NEW REPORT: Massachusetts’ Average Residential Utility Electric Rate Was 31% More Than Retail Energy first appeared on Retail Energy Advancement League.