DPU Orders Gas Rate Drop
MA customers can’t deny that it’s been an expensive winter. A variety of factors have contributed to raising both natural gas prices and electricity rates. But recent news have caused the Department of Public Utilities (DPU) to order rate drops. All the same, natural gas rates have been falling on their own since the new year began.
MA Gas Rate Drop
Because MA electricity customers have faced basic supply rate spikes since November, it seems strange that rates are dropping now. As it turns out, MA laws allow DPU to change rates depending on the natural gas markets. That’s significant because February is usually a hard month for MA energy customers. Most homes turn up the heat during cold snaps, like the one from February 17-21. And that means high electricity bills in the mail come March. But in early February, the MA DPU ordered utilities to lower the supply rates for natural gas customers.
MA customers can now expect their a drop in their energy bills. As a result, most households could see an estimated 4%-5% decrease in their monthly bills from February 1 through the end of April. This isn’t a huge decrease though. National Grid estimates that its customers will save about $11 per month, Eversource predicts around $33.
Of course, exact numbers depend on how much energy your home uses. So saving energy where you can should remain your top priority.
Falling Natural Gas Rates
As an added bonus to MA customers, natural gas prices have also declined since January 1. In fact, the Algonquin Citiy Gate spot price for natural gas was $12.16 per mmBTU on February 2. It then sunk to $2.52 per mmBTU by February 8, just 6 days later.
In other words, both gas and electricity rates are getting better!
Could Gas Rates Spike
Most homes crank up the heat when things get cold. And MA has had some cold spikes this month. So could this cause rates to spike again next winter?
It’s hard to predict with absolute certainty. But electricity costs are very seasonal. High winter and summer rates usually drop during the mild shoulder months. So, unless we have a particularly cold March or April, we should see less demand for heating. That also means energy rates should drop for a short time through May.
MA Customers And Gas Rate Drops
As we head into the spring shoulder months, customers may see lower rates for a little while. If you’re fed up paying roller coaster basic service rates, now is the time to shop for a fixed rate, long term plan at https://www.maenergyratings.com. Not only can you find a plan that shields you year ’round from spiking rates, you’ll find one that fits your needs. Don’t wait! Shop and save on your MA electricity rates now!