Buckle up, Bay Staters—this summer’s energy bills were a bit of a wild ride. If you lived through it, you don’t need to be reminded: the summer of 2024 in Massachusetts was characterized by extreme and persistent heat. With temperatures pushing into the 90s more days than is typical for the region and the humidity hanging in the air like a wet blanket, AC units were working in overdrive. 

May started unusually warm, with temperatures averaging 60°F—4°F above normal and the warmest since 2018. June became the second hottest June on record, and July followed with temperatures nearly 5°F above average, making it the second hottest July on record.

In addition to the heat, energy supply rates (the price you pay for the generation of the kWhs of electricity you use) were some of the highest ever in Massachusetts, well above the national average.

The good news? By taking a look into what’s happening in your local energy market, you can easily make better decisions. We’ll keep it easy and summarize the latest trends for you and —most importantly—show you how you can save a few bucks next year and in the months ahead. 

Energy use: Hotter days, higher bills

Let’s start with the big picture. In the summer of 2024, Massachusetts households saw a noticeable uptick in electricity usage compared to last year- based on data pulled from all Arbor users across the state. That’s not surprising, considering the record-breaking heat waves that swept across the state. When it’s 95+ degrees outside, most of us aren’t thinking about our electricity bills—we’re just trying to stay cool. But those kilowatt-hours add up.

Here’s the rundown:

Houses saw huge spikes in July 

For the average household in Massachusetts, electricity usage hovered around 937 kWh per month, with June into July seeing the highest overall spike. Residents in areas served by Eversource and National Grid used the most, with the average household exceeding 1,000 kWh, especially during the hottest weeks of July.

MA residents used >13% more energy than last summer

Massachusetts were likely to see sticker shock as their electricity usage was up by over 13% compared with summer 2023, exceeding the year-over-year increase in most other states. 

Breaking it down by month:

• June 2024: 18% increase compared with June 2023.
• July 2024: 16% increase over July 2023.
• August 2024: 5% increase in electricity usage compared with August 2023.

Bill breakdown: What your energy dollars added up to this summer

Let’s talk dollars and cents. Your electricity bill is made up of more than just what you use. So even if you’re using more electricity, it’s not a 1:1 comparison. Your bill is made up of so many other things - like your supply rate, your delivery rate, service fees and more. Here we’ll take a look at average bill totals to give you a complete picture. Among our user base, the average household in Massachusetts saw their electricity bill totals climb steadily from June to July and dip slightly in August.

Monthly cost trends: In June, the average bill among Arbor users was around $210, but by July, it had jumped to nearly $290. Western Massachusetts saw some of the highest bills, with households paying upwards of $340 in the peak of summer.

Comparing year-over-year spending: When we look at the same period last year, the increase is clear. Bills this summer in MA were about 7% higher in 2024 than in 2023, largely due to both higher usage and increased supply rates.

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And while extreme weather certainly doesn’t help, the power grid has also been under more pressure than usual. New England’s aging infrastructure struggled to keep up with the demand, leading to a few close calls with brownouts in late July. While we avoided widespread outages, it’s a reminder that our energy usage has a real impact on the grid’s stability.

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For most of us, the largest portion of these bills comes from our supply rate (again, the price you pay for the generation of the kWhs of electricity you use) , followed by delivery charges and those pesky taxes and fees that seem to creep up every year.

And while extreme weather certainly doesn’t help, the power grid has also been under more pressure than usual. New England’s aging infrastructure struggled to keep up with the demand, leading to a few close calls with brownouts in late July. While we avoided widespread outages, it’s a reminder that our energy usage has a real impact on the grid’s stability.

For most of us, the largest portion of these bills comes from our supply rate (again, the price you pay for the generation of the kWhs of electricity you use) , followed by delivery charges and those pesky taxes and fees that seem to creep up every year.

Higher rates: The real cost of staying cool

Next, let’s talk more about what those kilowatt-hours are costing you. Rates in Mass. are up this year, and while that might not be a surprise to anyone who’s opened their power bill lately, the reasons behind the increase are worth unpacking.

Summer 2024 utility rates: The average utility standard supply rate - or the rate offered by your utility - in Massachusetts this summer was around 17 cents per KwH, which is over 30% higher than the national average from this year at 12 cents per KwH (according to Arbor data on all utility rates in deregulated markets). If you’re in Boston or the surrounding areas, your rates were highest, while Western MA rates were slightly lower this summer. 

Looking ahead

Rates are expected to remain high, at least through the end of the year. In August rates did dip slightly across MA utilities, but they still remain much higher than the national average. These rates also expire at the end of the year, and could go up again. In fact, rates in New England typically skyrocket in the winter. If you haven’t shopped around for a better deal yet, now’s the time. Arbor users in MA who switched plans this summer saved up to 20% on their bills—an option worth considering if you want to avoid potential rate hikes at the end of the year.

Arbor savings: Users fared better this summer

While total costs were up across the board for bill payers in Massachusetts this summer, Arbor users paid significantly less than the average household.  Despite rising costs, you have the choice to shop around for a lower electricity rate if you live in Massachusetts. Arbor users in Massachusetts have been cutting their bills by switching to lower rates. 

As mentioned earlier, the average household paid a rate of 17 cents per kWh for their usage this summer, while Arbor users paid around 14. Here’s how that would result in lower power bills for Arbor users than the average household: 

• Biggest Savings Areas: Residents in zip codes like 02115 (Boston) and 01002 (Amherst) have seen some of the biggest gains, saving over $50 a month by switching. That’s real money, especially when rates are this high.

• Why It Works: Shopping for energy plans might not be the most exciting task, but it’s effective. The Massachusetts market offers a variety of options, and by letting Arbor do the legwork, you can lock in rates that beat the default offers—no need to get bogged down in the details.

If you haven’t switched yet, now’s a good time. The rate hikes predicted for the end of 2024 will likely make the savings even more significant for those who take action now.

Your grid mix: What’s powering your home?

New England’s energy grid is still heavily reliant on natural gas, which makes up a significant 68.43% of the region’s electricity generation. Nuclear energy is the next largest contributor, providing 16.89% of the power. While there’s been progress toward integrating renewable energy sources, they still make up a smaller portion of the overall mix.

Here’s how your grid breaks down today: Natural gas: 68.43%; Nuclear: 16.89%; Solar: 5.12%; Hydro: 2.73%; Biomass: 4.47%; Wind: 0.14%; Battery storage: 0.09%; Oil: 0.38%

Why it matters: While renewables like solar and wind are on the rise, they still account for a small fraction of the overall grid. The reliance on natural gas and nuclear means that price fluctuations in fuel markets, as well as ongoing infrastructure challenges, continue to play a key role in shaping energy costs across the region. As renewable technologies grow and battery storage becomes more efficient, we may see a more balanced energy mix in the future, offering more price stability and lower emissions.

And that's it! Our local market updates come out seasonally, so keep an eye out for future insights.