Otis Singleton
Boston, Massachusetts, has a deregulated energy market, meaning that Boston residents can choose their electricity provider and rates. There are 31 electricity providers in Boston, and residents can buy energy from independent suppliers or from their utility. The utility serving Boston is Eversource Energy, which also delivers natural gas to customers. Other suppliers include Direct Energy and Choose Energy, which offers cheap plans for Eversource utility. Boston also has a Community Choice Electricity program, where city officials negotiate a plan with an electric supplier on behalf of all their residents and businesses.
| Characteristics | Values |
|---|---|
| Number of electricity providers | 31 |
| Utility delivering electricity to homes and businesses | Eversource Energy |
| Basic Service rate | $0.14884/kWh |
| Types of plans | Fixed-rate, Variable-rate, Prepaid, No-deposit, Renewable energy |
| Average electricity rate | 28.41 cents per kWh |
| Average business electricity bill | $105,686 per month |
| Electricity supplier for Community Choice Electricity | Direct Energy |
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What You'll Learn
Boston's deregulated energy market
Boston, the capital of Massachusetts, has a deregulated energy market. This means that energy consumers in the city are not forced to pay their utility's basic service rate for electricity. Instead, they can shop around for a lower-priced or more eco-friendly plan.
Deregulation has introduced a competitive electricity supplier marketplace. This means that third-party suppliers, as well as the part of the utility company responsible for default basic service, are both buying up electricity supply. The utility company then delivers the electricity and bills the customer for it.
In Boston, residents can receive the Community Choice rate, where city officials negotiate a plan with an electric supplier on behalf of all their residents and businesses. This is known as Community Choice Electricity (CCE). The electricity supplier and rates are chosen through a competitive bidding process. Although the program strives for affordable rates, savings cannot be guaranteed as rates are locked in during the contract period and only change when the City agrees to a new contract.
For businesses in Boston, the deregulated energy market offers the flexibility to choose from a wide range of electricity providers. This competition between energy suppliers often leads to more competitive pricing, which can help businesses reduce operational costs. Businesses can also choose customized plans, like fixed-rate or wholesale options, tailored to their consumption.
Boston electricity rates vary, with the average residential rate around 28.41 cents per kWh, and a monthly bill averaging $154.55. Commercial rates tend to be cheaper than residential rates as businesses consume a lot of energy and get a volume discount.
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Boston Community Choice Electricity (BCCE)
BCCE has three plans to choose from, and the rate of each plan corresponds to the amount of additional renewable energy you select. The electricity supplier and rates are chosen through a competitive bidding process. Although the program strives for affordable rates, savings cannot be guaranteed as Eversource rates change every 6 months. Eversource is the default electricity supplier for new accounts in Boston, and BCCE automatically enrols Eversource Basic Service customers. New Basic Service customers are mailed a notification letter quarterly, giving them the opportunity to opt out of BCCE or choose a plan with more renewables.
If you are not enrolled in BCCE and are an Eversource Basic customer, it might be due to a supply block on your account, a past decision to opt out, or a recently opened Eversource account. You can still join BCCE by removing the supply block or signing up for a meeting. BCCE does not affect any benefits you receive from existing programs, plans, or assistance.
The BCCE program only affects the supply portion of your monthly bill, and Eversource continues to handle electricity delivery, customer billing, meter reads, and power outages. The reliability and quality of service remain the same, and you continue to have all existing consumer rights and protections.
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Eversource Energy
The company was formed following a merger with Boston-based NSTAR in 2012. NSTAR itself was the product of several corporate mergers, including the Boston Edison Company, Cambridge Electric Light Company, and the Commonwealth Electric Company. After the merger, the combined company, Northeast Utilities, had over 4,270 circuit miles of electric transmission lines, 72,000 pole miles of distribution lines, and 6,459 miles of natural gas pipelines in New England.
In 2015, the company rebranded as Eversource Energy and changed its stock symbol from "NU" to "ES". Eversource Energy has several regulated subsidiaries, including Connecticut Light and Power (CL&P), Public Service Company of New Hampshire (PSNH), Western Massachusetts Electric Company (WMECO), and Yankee Gas Services Company.
In Boston, Eversource is a major energy distributor, serving over 1.4 million electric customers and 300,000 natural gas customers across the city and its surrounding areas.
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Fixed-rate plans
Boston has a deregulated electricity market, which means that residents have the flexibility to shop around for a cheaper electricity bill. There are 31 electricity providers in Boston, and residents can choose from multiple electricity suppliers.
One of the electricity suppliers in Boston is Eversource, which offers a supply option called Basic Service. Eversource's rates change every 6 months, and its current residential rate is $0.14884/kWh.
Another option for Boston residents is the Boston Community Choice Electricity (BCCE) program, which offers three plans: Basic, Standard (default), and Green100. The BCCE rates are chosen through a competitive bidding process and are locked in during the contract period. The rates will only change when the City agrees to a new contract. The BCCE default and Green100 rates offer more renewable energy and currently cost less than Eversource’s Basic Service Rate.
When choosing a fixed-rate plan, it's important to remember that rates can vary greatly across different providers and plan structures. Currently, electricity rates in Boston range from 12 to 94 cents per kWh, with an average of 28 cents per kWh. However, a good electricity rate is generally considered to be between 27 and 29 cents per kWh. It's also worth noting that commercial rates in Boston are typically cheaper than residential rates, as businesses consume a lot of energy.
To find the best fixed-rate plan for your needs, it's important to compare multiple providers and consider your usage patterns. Additionally, be sure to read the fine print of any plan you're considering to avoid hidden penalties or deceptive marketing tactics. By taking the time to understand the terms, conditions, and price information of each plan, you can make an informed decision that aligns with your priorities and budget.
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Variable-rate plans
Energy in Boston is deregulated, meaning that customers can shop around for a lower-priced or more eco-friendly plan than the basic service rate offered by the local utility company. This means that while the utility company delivers your electricity and bills you for it, the electricity itself can be supplied by a third party.
One such third party is Boston Community Choice Electricity (BCCE), which is available to residents of Boston. BCCE offers a range of plans, with rates corresponding to the amount of additional renewable energy you select. The rates are locked in during the contract period and only change when the City agrees to a new contract. BCCE does not affect any benefits you receive from existing programs, plans, or assistance.
Another option for Boston residents is Eversource, which offers a Basic Service supply option. Eversource's rates change every 6 months, and its current residential rate is slightly higher than the BCCE Basic and Standard rates.
There are also other third-party suppliers available in Boston, which can be found by searching online or contacting your city or town hall.
In Boston, variable-rate plans are available from a number of electricity suppliers, including both traditional utility companies and third-party providers. When choosing a variable-rate plan, it's important to understand how the rates are determined and what factors can cause them to fluctuate. Some suppliers may use a formula that takes into account the wholesale cost of electricity, while others may adjust rates based on their own business needs or market demands.
One example of a variable-rate plan offered in Boston is the Basic Service plan from Eversource, mentioned earlier. As the local utility company, Eversource offers a default basic service rate for customers who do not choose a third-party supplier. Their rates change every 6 months, and customers on the Basic Service plan will see their rates fluctuate accordingly.
Third-party suppliers in Boston may also offer variable-rate plans. For example, Direct Energy, the electricity supplier for the BCCE program, offers variable rates that correspond to the amount of renewable energy selected by the customer. These rates are chosen through a competitive bidding process and are locked in during the contract period. However, savings cannot be guaranteed, as rates will change when a new contract is agreed upon.
When considering a variable-rate plan, it's important to be aware of the potential risks and benefits. On the one hand, variable rates can offer the advantage of lower prices when market conditions are favorable. But there is also the risk of rates increasing significantly, especially during times of high demand or when fuel prices rise. Customers should carefully review the terms and conditions of any variable-rate plan before signing up, to understand how rates are determined and what protections are in place for consumers.
Additionally, some variable-rate plans may offer other features or benefits beyond just the fluctuating rates. For example, some plans may provide options for renewable energy or carbon offsets, allowing customers to support more sustainable energy sources. There may also be opportunities for savings or discounts through loyalty programs or bundled services with other utilities, such as natural gas. By exploring the various options available in Boston's deregulated energy market, customers can find a variable-rate plan that aligns with their priorities and budget.
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Frequently asked questions
There are 31 electricity providers in Boston, including Eversource Energy, NSTAR, Mass Electric, and Western Mass.
The electricity marketplace in Boston offers four distinct types of plans: fixed-rate plans, variable-rate plans, prepaid plans, and no-deposit plans.
You can compare Boston electricity rates and plans online. Suppliers offer different rates in different places, so it's important to enter your ZIP code to find the best plan for your area.
Community Choice Electricity is when city, town, or community officials negotiate a plan with an electric supplier on behalf of all their residents and businesses. Boston Community Choice Electricity (BCCE) is one such program.
