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Massachusetts National Grid Customers to See Lower Bills Starting May 1

April 7, 2016 By Cheryl Kaften

National Grid’s electricity customers in Massachusetts can expect lower bills this spring and summer, the utility announced on April 5. If the new supply rates are approved by the Massachusetts Department of Public Utilities (DPU), a typical residential customer using 500 kilowatt hours (kWh) of electricity who receives Basic Service would see an electric bill that is approximately 23 percent lower than his or her current monthly bill – or a $25 savings.

National Grid has nearly 1.3 million residential and business electric customers in the Bay State. Beginning next month, the Basic Service charge –found in the supply services portion of the bill – could drop from the more than 13 cents/kWh to just above 8 cents/kWh. That decrease primarily would be attributable to fluctuations in wholesale electricity market prices – costs that National Grid does not control. National Grid does not generate electricity and plays no role in determining market prices; the company delivers electricity to customers’ homes and businesses.

While customers will see a significant decrease in the overall bill this season, supply prices are still high overall. This is due to higher wholesale electric prices in New England brought on by natural gas interstate pipeline constraints impacting the region, National Grid stated. Therefore, New Englanders should be advised that though these power supply costs generally reflect a reduction in bills for the summer months, bills are likely to increase again next winter because of ongoing pipeline capacity constraints.

“As we emerge again from winter, a season that consistently brings us higher energy prices, we are pleased that our customers can look forward to lower bills,” said Marcy Reed, president of National Grid in Massachusetts. “We are committed to pursuing solutions that help stabilize energy costs for our customers, regardless of the season.”

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