{"id":1082,"date":"2024-05-22T14:46:32","date_gmt":"2024-05-22T19:46:32","guid":{"rendered":"https:\/\/www.maenergyratings.com\/blog\/?p=1082"},"modified":"2024-05-22T14:46:34","modified_gmt":"2024-05-22T19:46:34","slug":"massachusetts-senate-passes-bill-ending-individual-residential-electric-choice","status":"publish","type":"post","link":"https:\/\/www.maenergyratings.com\/blog\/massachusetts-senate-passes-bill-ending-individual-residential-electric-choice\/","title":{"rendered":"Massachusetts Senate Passes Bill Ending Individual Residential Electric Choice"},"content":{"rendered":"\n

Will MA Residential Electric Choice End?<\/h2>\n\n\n\n
\"MA
MA senate lawmakers recently voted to end electric choice in the state. Learn more about the reasons and why it may be the wrong move for consumers.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n

Recently, the MA senate has passed a bill that would put an end to individual electric choice. While senate backers of the bill say electric choice has been harmful to low income MA customers, the current situation shows that ending electric choice now is bad news for consumers. But you may be wondering how this bill could affect your electricity bills<\/a>? Let’s look at the senate bill and figure out what it could mean for individual electric choice.<\/p>\n\n\n\n

What’s In The Senate Bill?<\/h3>\n\n\n\n

Senate bill (S.2738)<\/a> bans individual residential electric choice starting on January 1, 2025. If signed into law, homeowners would no longer be able to shop for 3rd party energy supplier electricity plans<\/a>. <\/p>\n\n\n\n

Keep in mind that this wouldn’t force your energy plans to end early. For example, if you lock in an 36 month fixed-rate plan beforehand, then you can remain on that plan for the entire term or until you choose to cancel. It does mean, however, that starting on January 1, 2025, energy companies<\/a> could not renew or offer plans to individual households.<\/p>\n\n\n\n

It’s also important to note that this bill focuses on individual energy choice. Municipal facilities could still shop for better rates.<\/p>\n\n\n\n

Why Ban Electric Choice?<\/h3>\n\n\n\n

Senate bill backers cite the Attorney General’s Office 8 year study into energy supply costs. The study asserts that MA residents have overpaid by about $577 million<\/a> when compared to Basic Service rates. The study did show that there was only one study period (July 2022-June 2023) where competitive energy products were cheaper. However, data suggests that 3rd party energy customers realized only $30.4 million in net savings. Still, study critics<\/a> point out that the AG’s study comparisons were flawed<\/p>\n\n\n\n

As you can guess, the bill has come under some criticism. The Retail Energy Supply Association (RESA) claims that while customers should be protected from scams, the bill prevents better companies<\/a> from offering cheaper services that suit customer needs. As an alternative, RESA supports House Bill H.4499<\/a> which add more customer protections while preserving consumer choice. <\/p>\n\n\n\n

Are Basic Service Rates Better?<\/h3>\n\n\n\n

Eversource’s new WMECO fixed residential basic service rate for August<\/a> to December 31 drops by about 12% from 15.810 cents per kilowatt-hour (kWh) to 14.023 cents per kWh. Meanwhile, the Eastern MA basic service rates<\/a> drop from 17.216 cents per kWh to 15.772 cents per kWh. This means default service rates will drop by about 12% and 8% respectively! <\/p>\n\n\n\n

However, a survey by EnergyChoiceMatters.com found 45 fixed rate electric choice supplier plans that beat the new the Eastern MA basic service rates. In fact, 8 of these plans are below 12 cents per kWh (23.9% cheaper than Nstar). This may well prove that competitive energy works in MA.<\/p>\n\n\n\n

What You Can Do Today<\/h3>\n\n\n\n

It is too early to tell if energy choice will end in MA. However, energy customers should act now, just in case the bill passes the House and is signed into law. You can find savings today, if you shop for the cheapest electricity<\/a> rates in town. If possible, lock into cheap rates that will last for 12-months or more. Because traditionally, rates rise during the new year and you don’t want to throw your money down the drain.<\/p>\n\n\n\n

As always, the best place to shop for better energy rates is https:\/\/www.maenergyratings.com<\/a>. You can also count on us for all the news that could affect your bills.<\/p>\n","protected":false},"excerpt":{"rendered":"

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