General Information on Boston Electricity Rates

According to the U.S. Energy Information Administration (EIA), the vast majority of Massachusetts, including the Boston area, runs on electricity generated by natural gas. In fact, the state is one of the largest natural gas-fired electricity producers on the entire national grid. Secondary fuel sources include distillate fuel oil and ethanol. However, some electricity suppliers also offer renewable energy, albeit at a higher per kilowatt-hour (kWh) rate.

All Boston residents receive an electricity bill that's divided into two categories – supply and delivery services.

Supplier services include electric generation services from energy suppliers. Their electric rates depend on the cost of generating electricity, which depends on the electricity generation method. Major electric suppliers in Boston include several Eversource Energy subsidiaries such as NSTAR Energy, Massachusetts Electric, among others.

Each energy provider offers several energy rates and plans. The supply charges in your electric bill include the cost of generating electricity and various other applicable fees (cancellation, early termination, etc.).

Your local utility company provides electricity delivery services. The utility company delivers your electricity, maintains power lines, and handles power outages.

Your delivery charges include the General Service, Residential Service, Transmission Charges, Distribution Power, and any applicable tax-related charges. Boston's local utility company is Eversource Energy, and all their delivery rates are approved and regulated by the Massachusetts Department of Public Utilities.

Energy Deregulation and How It Affects Boston Electricity Rates

Following a nationwide movement to deregulate electricity supply in the United States, the State of Massachusetts deregulated the energy supply industry in 1998. Energy deregulation allowed all Boston residents to choose from different electricity companies and get the one offering the best rate.

A competitive energy market has caused electricity prices to drop below the national average. Residents can also choose green energy plans which provide electricity generated through renewable sources.

If you don’t select an independent energy company, you will get the default plan from Eversource Energy. The default rate may be higher than the rates you get from other suppliers. The default rate is also your Price to Compare, which you can use to compare the rates and plans offered by other energy companies.

Finding the Best Boston Electricity Rates

All Boston residents can choose from multiple electric suppliers and choose the best plan available. Some companies offer lower rates, while others provide perks and services on top of average rates.

You can compare each energy company’s plans in order to make an informed decision. You can also try to shop for rates yourself, but watch out for the fine print, hidden fees, and escalating rates once your term ends.  

Alternatively, you can use Arbor’s free TrueRate Protection service to automatically find and switch to the best Boston electricity rates in your area.

Arbor scans the market and gives you the best rates you can get in your service area. When your contract term is expiring, Arbor finds the best rate and switches you again. You always pay the best rate and never have to worry about overpaying for electricity ever again.

You can also use the free savings calculator to find out how much you could save in each case.

Understanding Boston Electricity Rates and Plans

Every energy company offers several energy plans with different term lengths and rates. Some companies may offer additional services and perks depending on the type of plan you choose.

Changing your supplier is easy. You can find out who your current supplier is and what rate you’re getting using your energy bill. You can use Arbor to find the best rate in your area and switch to the lowest cost supplier quickly to save time.

You can also use Arbor to find the best rate in your area by using our free savings calculator.

Additionally, you will find different types of plans depending on the companies. These are the three primary plan options you’ll find in Boston.

• Fixed-Rate Plans: These plans are stable, and maintain a constant rate despite energy market fluctuations. Customers pay the same rate throughout their contract. We recommend fixed-rate plans because they minimize risk and provide price certainty. However, once your term expires, your rate may become variable and increase without notice. Arbor automatically keeps you on the best fixed-rate plan, so you don’t have to worry about rate hikes at the end of your term.
• Variable-Rate Plans: These plans feature monthly rates that depend on the prices of wholesale electricity and overall electricity demand. As a result, low energy demand produces low rates. However high demand often has customers overpaying for electricity.

Prepaid Plans: These plans are limited by the usage estimate of the customer. As the name suggests, they are paid for at the time of subscription. Unfortunately, prepaid plans may result in hefty additional charges if the customer goes over the usage limit.

How to Choose the Right Energy Supplier

All Boston residents get electric delivery services from Eversource Energy. However, they have the option to choose from multiple electric suppliers. You can use the Price to Compare or your current average price of electricity to check which company is offering the best electricity prices.

You should also check what energy plan offers the best savings and benefits.

Customers can check out how to save on their energy bills with Eversource Energy. But, electricity billing is complicated, which is why people trust Arbor to manage their electricity service for them, so they always pay the best electricity rate available in Boston.

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