SPRINGFIELD, Mass. (WWLP) – The Massachusetts Department of Public Utilities (DPU) has announced changes to the schedule used by Eversource and National Grid as to when they set new rates for basic service electricity supply.
The approved Order released Tuesday by the DPU will change when new rates go into effect to help split the winter months. Currently, Eversource supply rates for residential and small business customers change on January 1 and July 1. For National Grid customers, the supply rate changes on May 1 and November 1.
With the new order, supply rates would change for customers of both companies to February 1 and August 1. These new changes would help split the months of January and February, which are some of the coldest months of the year.
“Due to our current reliance on fossil fuel generation, customers can experience significant volatility in electric supply prices,” said DPU Chair James Van Nostrand, “Today’s decision is an important step towards minimizing significant price swings for basic service customers, while we transition to clean energy sources that will not only help stabilize energy rates but also lower emissions and improve air quality.”
In January 2023, the DPU opened an investigation into the pricing of basic service supply after a significant increase in rates to Massachusetts customers in 2022. Those rates were increased due to the Ukraine war, regional natural gas transportation constraints, uncertainty of basic service customer load, and the inclusion of the coldest months of the year, January and February, in the same supply rate period.
When will Eversource customers see rate changes?
Eversource customers will continue to see a basic service rate change on January 1, 2024. Those rates will continue until August 1, 2024, and then follow the new 6-month supply rate change every February 1 and August 1.
When will National Grid customers see rate changes?
National Grid customers will continue to see a basic service rate change on November 1, 2023. Those rates will continue until August 1, 2024, and then follow the new 6-month supply rate change every February 1 and August 1.
The order will also require that both companies follow three-month fixed rates for large businesses: February through April, May through July, August through October, and November through January.
To understand more about how electric rates are calculated, visit Mass.gov.