The Average Monthly Electric Bill In Massachusetts: Is It Too High?

Across the United States, energy prices have been steadily increasing in recent years, with Massachusetts being no exception. In this article, we'll be exploring the average monthly electric bill in Massachusetts and examining why it may be too high for many residents. We'll look at the current rate of electricity in Massachusetts, what components influence the rate, and how residents can reduce their monthly electricity bill. This article is essential for understanding the current electricity rate in Massachusetts, and why it may be putting a strain on the residents' finances.

Overview of the Average Electric Bill in Massachusets

The average monthly electric bill in Massachusetts can vary drastically depending on a variety of factors, including electricity rates, usage, and the type of electricity used. Residents of Boston, for example, can expect to pay around $90 per month for their electricity bill. Interestingly, in towns on the South Shore, average bills are considerably lower, with some towns paying as little as $40 per month. On the other side of the state, western Massachusetts is slightly more expensive, with bills reaching upwards of $100 per month. On average, however, Massachusetts residents can expect to pay around $75 per month for their electricity bills.

To better understand how the average electric bill in Massachusetts is calculated, let’s take a look at an example of an electric bill from the South Shore. For this example, we will assume the resident has a non-peak usage rate of 11 cents per kilowatt-hour (kWh) and a peak usage rate of 25 cents per kWh. Let’s further assume that the resident used a total of 1000 kWh of electricity in the month, and that 450 kWh of this was used during peak hours. The total cost of the electricity bill in this case would be calculated as follows:

Non-Peak Hours: (1000 kWh x 11 cents per kWh) = $110

Peak Hours: (450 kWh x 25 cents per kWh) = $112.50

Total Cost for the Month: $110 + $112.50 = $222.50

It is important to note that this cost does not include taxes or any additional charges, which can add an extra 10 to 20 percent to the total bill. Additionally, some providers in Massachusetts also offer discounts for electricity usage at certain times or for particular customers, so it is worth doing research on your provider to see if you qualify for any discounts.

the average electric bill in Massachusetts is around $75 per month. However, there are many variables to consider when calculating exactly what you owe on your monthly electricity bill, so it is important to make sure you are aware of the rates and offers your provider has.

The Average Monthly Electric Bill In Massachusetts: Is It Too High?

How Have Massachusetts Electricity Bills Changed Since Last Year?

Over the past few years, the average monthly electric bill in Massachusetts has been steadily increasing due to rising energy costs, which can be attributed to a number of different factors. According to the official website for the Massachusetts Department of Energy Resources, the average monthly electric bill in the state rose from $130 in 2017 to $151 in 2018.

The rising cost of energy is a result of several factors. For example, state-wide renewable energy mandates, such as the Massachusetts Renewable Energy Portfolio Standard, have increased the cost of electricity as power companies must purchase more renewable energy. In addition, Massachusetts has had to purchase more expensive energy from outside the state due to the limited availability of renewable energy sources within the state.

The cost of energy is also driven by the cost of natural gas and other fossil fuels, which have increased significantly in recent years. This has forced power companies to rely more heavily on these sources of energy, leading to an increase in the cost of electricity. Furthermore, the cost of electricity is also affected by taxes, fees, and other government-imposed costs.

To help consumers cope with these rising energy costs, the state of Massachusetts has established the Massachusetts Electric Discount Program, which provides eligible customers with discounts on their electric bills. In addition, the state has established the Massachusetts Energy Efficiency Program, which provides financial incentives to encourage energy efficiency and conservation. Lastly, the state provides energy efficiency rebates to residential customers who purchase energy-efficient products.

To view the current and past electricity prices in Massachusetts, customers can visit the official website for the Massachusetts Department of Energy Resources, which provides a detailed analysis of the state’s electricity prices. This website also allows customers to compare electricity prices from different energy suppliers in the state.

 

Why is my electric bill so high in Massachusetts?

Massachusetts residents often find themselves asking why their electric bill seems so high in comparison to other states. This can be especially perplexing since the average electric bill in Massachusetts is actually lower than the national average. The answer lies in a combination of factors, including the cost of electricity in Massachusetts, taxes and fees, and the cost of living.

When considering the cost of electricity in Massachusetts, it is important to note that electricity rates are generally higher than the national average. As of 2021, the average retail price of electricity in Massachusetts is $0.1350 per kilowatt hour (kWh), compared to the national average of $0.1164 per kWh. This difference can have a significant impact on electric bills, especially for households that use large amounts of electricity.

In addition to higher electricity rates, taxes and fees can also contribute to the higher cost of electricity in Massachusetts. One example is the public service assessment (PSA) fee, which is a monthly fee imposed by the state to finance investments in energy infrastructure and other related services. This fee is currently set at 3.03 cents per kWh, which adds up quickly for high electricity users. In addition, Massachusetts imposes sales tax on the sale of electricity, which further increases the cost.

Lastly, the cost of living in Massachusetts is higher than the national average. This means that even if electricity rates remain the same, people living in Massachusetts may still have to pay more for electricity than people living in other states. This is because electricity costs are affected by the cost of other goods and services; for example, a higher cost of living often translates to higher prices for other items, such as food and clothing.

the combination of higher electricity rates, taxes and fees, and the higher cost of living in Massachusetts can make electricity bills seem much higher than the national average. However, there are ways to reduce the cost of electric bills in Massachusetts, such as shopping around for the best electricity rates, taking advantage of energy efficiency measures, and using renewable energy sources.

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Compare the cost of electricity from Massachusetts to another State

Comparing the cost of electricity in Massachusetts to other states can be a difficult task. This is because the cost of energy can vary significantly between states and regions, depending on a variety of factors. To better understand how Massachusetts' electric bills stack up to other electricity providers, let's take a look at a few key comparison points.
1. Electricity Rates: Massachusetts has some of the lowest electricity rates in the nation. According to the U.S. Energy Information Administration, residential customers in Massachusetts pay an average of 11.11 cents/kWh. This is significantly lower than the national average of 13.31 cents/kWh.
2. Taxes and Fees: Massachusetts has some of the highest taxes and fees on residential electricity bills. These taxes and fees can increase the total cost of electricity significantly. The average residential customer pays an additional 6.7% in taxes and fees on top of the basic electricity rate.
3. Renewable energy sources: Massachusetts has some of the highest percentages of electricity generated from renewable sources in the nation. As of 2019, Massachusetts had a renewable energy portfolio of about 15.2%, with most coming from solar and wind power.
4. Natural gas and coal: The state of Massachusetts gets most of its electricity from natural gas and coal. According to the U.S. Energy Information Administration, natural gas accounts for about 39% of the state’s electricity generation while coal makes up for 22%.
5. Nuclear power: Massachusetts also relies on nuclear power for electricity. The state has three nuclear power plants, which generate about 25% of the state’s electricity.
6. Weather: Massachusetts is known for its cold winters, which can substantially increase the cost of electricity. During the winter months, customers may see a spike in their electric bills due to increased demand for electricity to heat homes and businesses.
7. Average monthly electric bills: According to the U.S. Energy Information Administration, the average monthly residential electric bill in Massachusetts is $133. This is higher than the national average of $117.
8. Average home size: The average home size in Massachusetts is 2,370 square feet. This is larger than the national average of 2,087 square feet.
9. Average household size: The average household size in Massachusetts is 2.3 people. This is much lower than the national average of 2.5 people.
10. Average temperature: The average temperature in Massachusetts is 50.3 degrees Fahrenheit. This is lower than the national average of 54.4 degrees Fahrenheit.

Table of Comparison

Comparison Massachusetts National Average
Electricity Rates 11.11 cents/kWh 13.31 cents/kWh
Taxes and Fees 6.7% N/A
Renewable Energy Sources 15.2% N/A
Natural gas and coal 39% (natural gas), 22% (coal) N/A
Nuclear power 25% N/A
Average monthly electric bills $133 $117
Average home size 2,370 square feet 2,087 square feet
Average household size 2.3 people 2.5 people
Average temperature 50.3 degrees Fahrenheit 54.4 degrees Fahrenheit

it is clear that the cost of electricity in Massachusetts is slightly higher than the national average, but it is still quite competitive. Massachusetts has some of the lowest electricity rates in the nation, and it is also one of the leading states for renewable energy. However, due to the state’s cold winters and high taxes and fees, the average monthly electric bill in Massachusetts is still higher than the national average.

 

Who Provides Electricity to Massachusetts?

In Massachusetts, electricity is mainly sourced from five different power companies. These companies are Eversource, National Grid, Unitil, Massachusetts Municipal Wholesale Electric Company (MMWEC), and Western Massachusetts Electric Company (WMECO). Each of these five companies provide electricity services in different areas of Massachusetts, and together they cover the entire state. Below is a brief introduction to each of these companies.

Eversource

Eversource is a leading energy delivery company that has been providing homes and businesses with electricity and natural gas for over 140 years. The company has just over 3.6 million electric customers across Massachusetts. Eversource has operations in Massachusetts, New Hampshire, Connecticut, and Rhode Island.

National Grid

National Grid is an international electricity and natural gas company that provides services to nearly 11 million customers worldwide. In Massachusetts, National Grid has 2.6 million electric customers. The company provides services in Massachusetts, Rhode Island, New York, and New Hampshire.

Unitil

Unitil is a utility services company that operates in the northeastern United States. The company provides electricity to almost 250,000 customers in the state of Massachusetts. Unitil has operations in New Hampshire, Massachusetts, and Maine.

Massachusetts Municipal Wholesale Electric Company (MMWEC)

MMWEC is a public power and energy services provider that provides competitive and reliable electricity services to public and municipal customers in Massachusetts. The company has over 500,000 customers in the state.

Western Massachusetts Electric Company (WMECO)

WMECO is a regulated electric company that provides electricity to nearly 300,000 customers in western Massachusetts. WMECO is owned and operated by Eversource and operates in three counties in the state, Berkshire, Franklin, and Hampshire.

Together, these five companies serve nearly 8 million people in Massachusetts with reliable and competitive electricity services.

How to pay Less for Electricity in Massachusetts

There are several ways Massachusetts residents can save on their electric bills. Here are five suggestions:

    • Shop around for your electric supplier. You have the choice to select your electricity supplier in Massachusetts. Compare the prices and services of different suppliers in your area to find the best deal.

    • Take advantage of time-of-use plans. Massachusetts has time-of-use plans which can reduce your electricity bill if you shift your electricity usage off peak hours and onto peak hours. With this plan, you can lower your energy costs by using energy during lower priced peak hours.

    • Engage in energy efficiency activities. Make use of energy efficient appliances and lightbulbs. Look into programs that offer free home energy audits to identify areas of your home that require insulation or repairs for energy efficiency. Fixing air leaks will help you save electricity.

    • Learn about the different rebate programs. Massachusetts offers rebate programs for energy efficiency projects, solar energy, and other renewable energy projects. Learn about these programs and see how you can take advantage of them.

  • Invest in solar energy. Solar energy can help you save on your electric bills while also helping reduce carbon emissions. Massachusetts offers several incentives and rebates for solar energy, including the Massachusetts Solar Rewards Program, which covers up to half of the cost of solar installations. Here is a comparison of the cost of electricity bills if you switch to solar energy:

Existing Electric Bill 10 Year Cost 20 Year Cost 30 Year Cost


Year Electric Bill Solar Energy System
1 $50 $20
10 $500 $200
20 $1,000 $400
30 $1,500 $600

By shifting to solar energy, you can significantly reduce your electric bills compared to traditional energy sources. Investing in renewable energy is also beneficial for the environment; it cuts down on carbon emissions and helps preserve the planet's natural resources.

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1. What is the average cost of an electric bill in Massachusetts?

The average cost of an electric bill in Massachusetts depends on several factors including your energy provider, current electricity rates, and how much electricity you use. According to the Massachusetts Department of Public Utilities, the average cost of an electric bill in Massachusetts is about $86 per month. However, the average residential electric bill can vary greatly depending on usage and the energy provider. For example, an average residential customer who uses about 500 kWh per month with Eversource Energy pays about $95 per month, while an average customer with National Grid pays about $86 per month.

It is important to keep in mind that electricity prices in Massachusetts can vary significantly depending on the area. Rates are affected by factors such as how the electricity is generated, how much it costs to deliver the power, and the demand for electricity. Therefore, it is important to check with your energy provider to determine the exact cost of an electric bill in your area.

2. Are there any incentives or discounts available in Massachusetts to reduce electric bills?

Yes, there are several incentives and discounts available in Massachusetts to reduce electric bills. The most common incentives are provided by Mass Save, the energy efficiency program sponsored by Massachusetts utilities. Through Mass Save, residents can get discounts on energy-efficient appliances, lighting, and heating and cooling systems, as well as discounts on insulation.

In addition, residents can get discounts on their electric bills through the Massachusetts Residential Electric Rate Discount Program. This program provides a 10% discount on electric bills for low-income customers and a 15% discount for certain elderly customers.

Discounts may also be available depending on the utility company. Some offer discounts to customers who use less energy during peak usage hours, while others offer discounts to customers who pay their bills electronically.

Massachusetts also has a number of other programs that can help residents save money on their electric bills. These include energy-efficiency loans, the Home Energy Audit Program, and the Solarize Massachusetts Program.

By taking advantage of these incentives and discounts, Massachusetts residents can save money on their electric bills and reduce their carbon footprint.

3. How do the electric bills in Massachusetts compare to other states?

Electric bills in Massachusetts compared to other states

Electric bills in Massachusetts are generally higher than other states in the U.S. due to it's northern location and temperate climate. According to the U.S. Energy Information Administration, customers in Massachusetts on average pay 18.3 cents per kilowatt-hour (kWh) for electricity, which is two cents higher than the national average. This is still lower than other more northern New England states such as Rhode Island and Vermont, who have electric bills of 18.7 cents and 19.3 cents per kWh, respectively.
Additionally, Massachusetts has among the highest electricity prices in the country as well. The average monthly residential electric bill in Massachusetts is around $118, compared to the national average of $110. This is primarily due to the need to import energy from out of state in order to meet the state's electricity needs.
Massachusetts is a leader in renewable energy in the U.S., with the state having passed a law in 2008 to create the nation's first comprehensive renewable energy portfolio standard. This has caused electric bills to rise in the state due to the infrastructure costs associated with transitioning to renewable energy sources. This is in addition to Massachusetts already having above-average electricity prices.
Massachusetts electric bills are higher than the national average due to the northern location, temperate climate, and need to import energy from other states. The state also has among the highest electricity prices in the country, and is transitioning to renewable energy sources at a higher rate than other states. Taking this into consideration, electric bills in Massachusetts are generally higher than other states in the U.S.

4. Are there any energy efficiency or green energy programs available in Massachusetts to help reduce electric bills?

Yes, there are numerous energy efficiency and green energy programs available in Massachusetts to help reduce electric bills. The Massachusetts Department of Energy Resources (DOER) provides assistance to Massachusetts residents, businesses, municipalities, and non-profits through various incentive and financing programs. These programs help to reduce the cost of energy efficiency and renewable energy systems.

The Mass Save program supports energy efficiency and renewable energy initiatives that reduce energy use and costs, while promoting a clean and healthy environment. Mass Save provides energy efficiency services, including free energy assessments, rebates for energy-efficient appliances, and other incentives and financing options. Mass Save also offers a variety of renewable energy options for Massachusetts homeowners, such as solar hot water and photovoltaic systems.

Massachusetts’ utilities offer programs to promote energy efficiency and renewable energy. These programs help residents and businesses reduce their energy consumption and save money. For example, National Grid’s Commercial & Industrial Energy Efficiency program offers incentives to commercial and industrial customers that invest in energy efficiency projects. Eversource’s Small Business Energy Advantage Program offers incentives and financial assistance to eligible small businesses for energy efficiency projects.

the Massachusetts Clean Energy Center's Renewable Energy Trust provides grants to support renewable energy projects that reduce energy costs and promote the Commonwealth’s clean energy goals. The Trust helps eligible projects with planning, capital, technical assistance, and other services. The Trust also provides grants for energy efficiency projects in affordable housing.

5. Are there any solar power or other renewable energy options available in Massachusetts to help reduce electric bills?

Yes, there are several solar power and renewable energy options available in Massachusetts to help reduce electric bills. Massachusetts has some of the most aggressive solar energy policies in the nation, and the state is committed to promoting renewable energy technology. Homeowners and businesses can take advantage of generous incentives, tax credits and net metering opportunities to help reduce their electric bills.

For residential customers, Massachusetts offers a Solar Renewable Energy Credit (SREC) program to help defray the cost of installing a solar energy system. Through SREC, homeowners earn credits for the excess energy they produce while offsetting their utility bills.

The state also provides businesses with tax incentives for installing solar energy systems. Businesses can receive a federal tax credit of 30% of the cost of the system and can also take advantage of preferential net metering rates. The net metering program allows businesses to sell excess electricity produced by their solar energy systems back to the grid.

In addition to solar energy options, Massachusetts also offers a variety of renewable energy technologies to help reduce electric bills. Wind energy and hydroelectric power are two popular renewable energy sources. These options provide an alternative to burning fossil fuels and can reduce electric bills by up to 40%.

Massachusetts provides a wide range of renewable energy options to help reduce electric bills. With the state’s generous incentives and tax credits, homeowners and businesses can take advantage of these renewable energy sources to make their homes and businesses more energy efficient.

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The cost of electricity in Massachusetts is regulated by the Department of Public Utilities. While the average monthly electric bill in the state may appear to be high, it is important to remember that this rate is closely monitored to ensure it is fair and competitive for all consumers. In addition, many utility companies in Massachusetts offer incentives that can help reduce the cost of monthly electric bills. By taking advantage of energy efficiency upgrades, renewable energy sources, and other incentives, consumers can help reduce their monthly electric bills and save even more on their energy costs.

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