Umair Gaines
Massachusetts has the fourth-highest average electricity rate in the US, with residents paying an average monthly bill of $132.18, significantly higher than the national average. Energy deregulation in the state means that residents can choose between buying electricity from their
| Characteristics | Values |
|---|---|
| Average electricity rate in Massachusetts | 25.20¢ per kWh |
| Average electricity bill in Massachusetts | $132.18 |
| Average monthly residential electricity bill in Massachusetts | $174.52 |
| Massachusetts ranking in the US by average electricity rate | 4th |
| Massachusetts ranking in the US by average electricity bill | 7th |
| Massachusetts ranking in the US by electricity consumption | 43rd |
| Default electricity supplier | Local utility company |
| Alternative suppliers | Constellation Energy, Direct Energy, Clearview Energy, Green Mountain Energy, Inspire Clean Energy, Just Energy, Major Energy, Energy Plus |
| Utility companies | Eversource, National Grid, Unitil |
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What You'll Learn
- Massachusetts has the fourth-highest electricity rates in the US
- Mass residents receive electricity from their local utility by default
- Mass electricity is expensive due to fossil fuel imports
- Mass residents can compare rates and plans to find the best deal
- Mass residents can choose their energy supplier
Massachusetts has the fourth-highest electricity rates in the US
Massachusetts has some of the highest electricity rates in the US, with residents facing the seventh-highest electricity rates in the nation. The state has the fourth-highest average electricity rate in the US at 25.20 cents per kilowatt-hour, which is significantly higher than the national average of 13.15 cents. The average monthly electric bill in Massachusetts is $132.18, the seventh-highest in the nation.
There are several reasons why electricity rates are so high in Massachusetts. One of the main reasons is the state's reliance on natural gas to generate electricity. Natural gas prices tend to be volatile, and without sufficient pipeline capacity, power plants face higher fuel costs, which are passed on to consumers. The state also experiences cold winters, which leads to a surge in demand for electricity and natural gas for heating, further driving up prices.
Additionally, Massachusetts has to import fossil fuels, and there is resistance to building more natural gas pipelines, which contributes to higher costs. The state's commitment to renewable energy and reducing carbon emissions may also play a role in the higher electricity rates, as transitioning to cleaner energy sources can be expensive.
However, it's important to note that Massachusetts has taken steps to address this issue. The state has implemented energy deregulation, allowing residents to shop around for their electricity supplier and compare rates to find the best plan for their needs. Fixed-rate plans, in particular, can help consumers avoid unexpected rate hikes. Additionally, residents can take steps to reduce their electricity consumption and lower their bills, such as installing smart thermostats, sealing drafts, and using energy-efficient appliances.
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Mass residents receive electricity from their local utility by default
Massachusetts has the fourth-highest average electricity rate in the US at 25.20 cents per kWh, which is significantly higher than the 13.15 cents national average. Despite this, Massachusetts residents still receive their electric supply from their local utility by default. The local utility company is responsible for power distribution.
Your location determines your utility company because of the established power grid. Utility companies transport electricity across the grid to homes and businesses. If you experience a power outage, you should call your utility company to restore power.
Utility companies have a default rate called the Price to Compare (PTC). This rate is often higher than the electric rates offered by alternative suppliers. However, Massachusetts residents have the benefit of Energy Choice, meaning they can compare electricity providers and plans based on rate, length, and energy source, and then switch providers if they find a better option.
Some of the top Massachusetts suppliers include Constellation Energy, Direct Energy, and Clearview Energy, which currently offer the cheapest electricity rates in the state. However, electricity rates change frequently, so it is important to compare rates and plans to find the best option for your needs.
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Mass electricity is expensive due to fossil fuel imports
Massachusetts has some of the highest electricity rates in the US, with an average rate of 30.73 cents per kilowatt-hour in 2024, ranking 7th highest in the nation. The average monthly electric bill for residential customers is $316, which is 43% higher than the national average. So, what's causing these high rates?
One significant factor is the state's dependence on natural gas. Almost two-thirds of New England's electricity is generated from natural gas, but the infrastructure for transporting it is limited. Massachusetts has only a few supply pipelines, and during peak demand periods, especially in winter, there isn't enough capacity to meet the region's needs. This bottleneck drives up natural gas prices, which are then passed on to consumers as higher electricity rates.
The state's journey towards electricity deregulation has also played a role. In 1997, Massachusetts passed the Electric Restructuring Act, allowing consumers to choose their electricity supplier with the expectation that competition would lower prices. However, this didn't lead to the anticipated price reductions, and electricity prices continued to rise due to various unforeseen factors.
Seasonal demand fluctuations further contribute to high electricity rates in Massachusetts. The state experiences brutal winters, leading to a dramatic increase in electricity and natural gas demand for heating. This surge in demand results in higher prices. Additionally, the costs associated with transitioning to renewable energy sources also impact electricity rates.
To manage their electricity costs, Massachusetts residents can compare retail energy suppliers and take advantage of energy efficiency programs. They can also consider investing in solar panel systems, which can significantly reduce monthly electric bills over time.
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Mass residents can compare rates and plans to find the best deal
Massachusetts has the fourth-highest average electricity rate in the US at 25.20 cents per kilowatt-hour (kWh). The average monthly residential electricity bill in Massachusetts is $174.52, with a current average electric rate of 31.22 cents per kWh and typical usage of 559 kWh per month. However, Massachusetts residents can take advantage of energy deregulation and compare rates and plans to find the best deal.
Energy deregulation allows Massachusetts residents to choose between their utility company and an energy supplier. Energy suppliers sell electricity plans directly to customers and often offer lower rates or unique incentives to attract new customers. Residents can compare various energy suppliers to find the cheapest electricity in MA. Some of the top Massachusetts suppliers include Constellation Energy, Direct Energy, and Clearview Energy.
There are several ways to compare and switch electricity providers:
- Enter your ZIP Code: You can see providers and rates available in your area by entering your ZIP code on websites like Choose Energy or ElectricityRates.com.
- Compare electricity providers and plans: Compare plans based on rate, length, and energy source. Consider fixed-rate plans that lock in a set price for the duration of your contract or renewable energy plans that offer credits or source 100% green energy.
- Switch electricity providers: Select the right plan for you and fill out the necessary information to switch. Your new provider will handle the setup without interrupting your service, and your new rate will usually take effect within one or two billing cycles.
By comparing rates and plans, Massachusetts residents can find more affordable prices and lower their electric bills.
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Mass residents can choose their energy supplier
Massachusetts has the fourth-highest average electricity rate in the US, at 25.20¢ per kWh, which is significantly higher than the 13.15¢ national average. Despite this, Massachusetts residents can choose their energy supplier.
By default, Massachusetts residents receive their electric supply from their local utility company. However, they can now choose from many more providers and options. Residents and business owners can compare various energy suppliers to find the cheapest electricity in MA. A few top Massachusetts suppliers include Constellation Energy, Direct Energy, and Clearview Energy.
Energy deregulation means that customers are free to compare rates and plans to find the best electric and gas plans for their needs. Energy suppliers sell electricity plans directly to customers and often offer lower rates or unique incentives to appeal to new customers.
If you are a customer of an electric company in Massachusetts, you may choose to purchase "supply products" (the actual electricity) from competitive suppliers. Competitive suppliers are companies licensed by the Massachusetts Department of Public Utilities (DPU) to sell electricity to people in Massachusetts. If you don't buy from a competitive supplier, you will continue to receive electricity from your electric utility, known as "Fixed Basic Service".
There are many ways to lower your electric bill, including properly maintaining your HVAC and upgrading to more energy-efficient appliances. One of the most straightforward ways to lower your electric bill is by reducing your energy consumption.
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Frequently asked questions
The average electricity rate in Massachusetts is 25.20¢ per kWh, which is the 4th highest in the US.
Some of the top electricity suppliers in Massachusetts are Constellation Energy, Direct Energy, and Clearview Energy.
You can find the best electricity rates in Massachusetts by comparing rates and plans from different suppliers. You can use websites like Choose Energy or ElectricityRates.com to compare rates and find the best plan for your needs.
