Uncover the Truth Massachusetts Hides about Your Electric Rates
Power to Choose

Uncover the Truth Massachusetts Hides about Your Electric Rates

24 Aug 20225 mins to read


People use the words electric choice when they talk about energy deregulation. Energy deregulation is the process of integrating competition in the wholesale energy market and allowing Massachusetts electric suppliers to buy electricity at low prices and tailor individual plans for their consumers. As a result, homeowners and business owners can choose an electric supplier or a personal electricity plan and adjust it according to their needs. Energy deregulation prevents monopoly and improves competition, benefiting the end consumer who receives the best Massachusetts electric rates and uses his power of choice.

Do You Know These Facts about Energy Choice in the USA?

  • From the start, the energy industry was fully regulated, and in 1932 around 8 companies owned 73% of electricity in the US.
  • In 1935, Congress passed the PUHCA (Public Utility Holding Company Act) to stop the increased monopoly and initiate regulated protocols in the energy market.
  • When the energy crisis hit in 1970 and the oil embargo in 1973 changed the lives of Americans, the USA built power plants that relied on its natural resources - coal and uranium. The exorbitant prices for their construction were passed to consumers who saw shocking electric prices on their bills. They couldn’t even dream about having an electric choice and switching their electricity supplier.
  • With the implementation of the Energy Policy Act in 1992, the energy wholesale market started to be competitive, and the first deregulation policies would emerge for the public.
  • In 2022, 26 states deregulated their energy or gas market, and thousands of consumers used their energy choice to get lower prices on their monthly bills.

Deregulation was the first form of managing electricity from the time the first power plant was built in America. The lesson is obvious - consumers should have the power to choose their electricity provider.

Does Massachusetts Electric Choice Work for Everyone?

The first act that promoted the reconstruction of the electric utility, regulation of the provision of electricity, and customer protection in Massachusetts was passed in 1998. Until then, only 3 main utilities were serving homeowners and businesses in the area, creating a monopoly for exorbitant electricity rates and unfair contract terms.

In the following years, more than 150 energy suppliers appeared on the market, and the energy prices dropped significantly. At that point, deregulation was declared successful - saving people almost $1.5 billion. Consumers can't deny deregulation's advantages for their houses and businesses today. They get low prices, customized energy plans, and a lot of additional benefits by switching energy suppliers.

The Average Massachusetts Electric Rates in 2022

According to the U.S. Energy Information Administration, the energy rates in Massachusetts in 2022 are the following:

Residential:    23.85 cents/kWh

Commercial:  17.13 cents/kWh

 

The natural energy sources of utility energy generation:

Petroleum-Fired:         0.0%

Natural Gas-Fired:     74.1%

Coal-Fired:                   0.0%

Nuclear:                        0.0%

Renewables:               22.3%

 

The energy sources for home heating:

Petroleum-Fired:       52.3%

Natural Gas-Fired:    24.4%

Electricity:                  16.9%

Renewables:               3.7%

Coal-Fired:                 2.7%

Energy Facts About Massachusetts:

  • Massachusetts' residents are in the top 10 states for the lowest energy consumption, even though the state consumes 15 times more energy than it produces.
  • Since 2017, Massachusetts hasn't used coal for its energy production.
  • In 2020, Massachusetts placed 8th in the USA in the volume of solar energy generation.
  • Biomass and hydropower account for almost 10% of Massachusetts's net energy production.

How Does Electricity Come to Your House in Massachusetts?

Until you get electricity at home, it follows the following path:

1) Generation - most electricity in the country is generated by coal, natural gas, nuclear energy, coal, and renewable energy. 

2) Transmission - once the electricity is generated, it is transmitted from the power plants through high-voltage lines to the local distribution network.

3) Distribution - at this point, the electricity is distributed through low-voltage lines to your home.

4) Consumption - you use the energy and pay the bill to your utility or chosen Massachusetts electric supplier.

What is the Role of Your Massachusetts Electric Supplier?

In the past, utilities were publicly owned and were a one-stop shop for everything energy-related, starting with electricity generation, distribution, billing, solving disputes, and much more. Consumers in Massachusetts had no choice in switching their electric supplier. Once deregulation came into the country, the whole system changed.

Today, a supplier buys electricity and gas from generators and sells them to consumers at a better price. Even more, an electric supplier in Massachusetts creates competition and can tailor different plans with better electric rates for consumers. This way, your electricity is still transmitted and distributed by the local utility, but the actual supply comes from your chosen energy provider. This is why your energy choice is important in Massachusetts.

What Are the Benefits Massachusetts Hides About Your Electric Choice?

  • You can save energy. Deregulation has saved consumers in Massachusetts $1.5 billion since 1997. While utilities provide nonnegotiable rates, switching an energy supplier will allow you a choice to get a better deal with customized terms, such as price, early cancelation fees, plan length, renewable energy sources, and others, which means you will get the best Massachusetts electric rates.
  • You don't experience service interruption. When you switch your Massachusetts electric supplier, it will make the necessary changes for you by contacting the local utility to make the switch. This way, you won't undergo any connection problems and can continue using electricity for your home.
  • You can opt for a renewable energy source. Multiple Massachusetts electric suppliers provide plans with rates based on renewable energy resources. By choosing green energy, you can contribute to reducing your carbon footprint and be a part of the USA’s net-zero policy.
  • You get better service. An electric supplier will provide valuable services to their customers to survive the competition. You get fast assistance, lower Massachusetts electric rates, and better 24/7 customer support than your utility delivers.
  • You have the power to choose. Forget about monopoly prices and unfairness - today, you are the one who decides which electric rates are best for your home and business. You can choose the most suitable energy provider on the market and make the Massachusetts electric choice work for you!

What Types of Plans Can You Get in Massachusetts?

  • Fixed-rate plans. The plan will have a fixed price that won't change during the contract's time. If an energy crisis strikes the country and prices skyrocket, your home will be secure with fixed electric rates.
  • Variable plans. These contracts are flexible because the energy rates will follow the price changes in the wholesale energy market. On the one hand, if prices rise, your bill is higher. But on the other hand, in Massachusetts, you will get lower electric bills and electric rates when prices go down.
  • No-deposit and prepaid energy plans. Usually, an electric supplier will check your credit score and ask for a deposit before starting a plan. With no-deposit contracts, you avoid credit checks and can even choose the prepaid option. You deposit money into your personal account, and the supplier uses it monthly to pay your bill.
  • Green energy plan. As discussed above, several Massachusetts electric suppliers will have renewable electric plans. It’s important to make a green choice and reduce your carbon footprint.
  • Business plans. In today's energy crises, securing just your home in Massachusetts with tailored electric rates is not enough. That's why an electric supplier has reliable business energy plans, and you get to save money and electricity on your company's bills. 

How to Switch Your Massachusetts Electric Supplier?

Switching your energy supplier is a piece of cake. The process is even faster and more straightforward with Energy5.

  1. Access Energy5 and compare providers and prices in your area.
  2. Review the plan details and select the one that suits you best.
  3. Upload recent bills to show your provider your average monthly electricity usage.
  4. Request a customized price and electric rates for your house/ business.
  5. Recheck the contracts' clauses, make a choice, and confirm the switch.
  6. Your new Massachusetts electric supplier will contact your local utility and make all the necessary changes.
  7. You are all set for now!

Why Is Your Energy Choice Important?

After so many unexpected global events, such as Covid, the energy crisis, and constantly rising inflation, it's time to secure your home and business in Massachusetts and get fixed electric rates. Although you may feel unaffected today, things are progressing quickly.

Forget about the anxiety you constantly get before opening your monthly energy bill. Forget about rising wholesale energy prices and overcharges. Today you can actually make the Massachusetts energy choice work for you and take matters into your hands. That's why Energy5 has selected the best energy suppliers and developed solutions to survive the rising prices.

The Energy5 tool can be a turning point for making crucial energy and gas savings decisions for your home and your business. You are the one who can take the necessary steps to reduce your carbon footprint. Choose a Massachusetts electric supplier that can present a tailored plan with fixed electric rates to overcome the energy crisis and save money on your electric bill.


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