MA Hit With Electric Cost Shock
Last month, massive electricity bills hit New England energy customers hard. As a result, many families struggled to stay warm during this year’s chilly winter. But why do Massachusetts electric rates cost so much and what can you do about it? Let’s talk about why cold temps and costly natural gas led to such high electric bills.
Why MA Natural Gas Price Spiked
About 55% of New England’s electricity comes from natural gas fueled power plants. The gas gets to New England through just 4 pipelines. If one shuts down, prices spike. So, electricity rates in New England can jump when anything effects the price of natural gas. On top of this, energy demand rises during cold winter months. And this past winter saw some very cold weeks.
Case in point, MA energy demand rose by about 4.7% from 2024. In fact, the average temperature fell by 5 degrees this past winter. In other words, as gas demand rises, so do electricity prices.
As a result, the average MA electricity price was $126.40 cents per megawatt-hour (mWh) in February. This is a massive 301% spike compared to the months before. In fact, the price per therm for natural gas was 319% higher than the average at $14.62 per therm.
MA Lawmakers Seek Natural Gas Fix
Obviously, the high costs are why state lawmakers are working to lower costs. We’ve talked before about Governor Healey’s plan for a new affordability bill. While details haven’t come out yet, Healey has already announced a $50 credit that will go to energy utility customers this month for low and moderate-income families. But Healey has also announced plans to expand renewable energy into the state’s energy profile.
Healey has also talked about changing how funding works for the Mass Save program. This program helps offset the costs for going energy efficient, with several incentives, rebate offers, and services. In this way, state slowly remove its need for natural gas “power burn”.
Meanwhile, the DPU has fined National Grid for $15 million dollars. The fines came as a result of a slew of customers complaints dating back to 2023. National Grid customers should see refunds show up in May.
Take Advantage Of MA Programs
With summer looming, the future of both natural gas and electricity prices is uncertain. Indeed, heat pump and EV programs and tax credits may be at risk as well. However, there are ways to help you cut your bills down to size and save more energy through the year. And, it also helps to lock in steady rates with the best Massachusetts electricity providers.
There’s no better place to shop than https://www.maenergyratings.com. You should also drop by for news and tips that could affect your bills.