Massachusetts Has the 3rd Highest Average Monthly Energy Bill in the Nation

Tuesday, July 14, 2015

GoLocalWorcester Business Team

Mass energy costs are among the highest in the country according to a new report.

Measuring the difference in energy costs in every state and the District of Columbia, WalletHub concluded that Massachusetts residents have the 3rd highest monthly energy bill in the nation for 2015.

The study summed the total monthly cost of four different sources of energy: electricity, natural gas, motor fuel and home heating oil. WalletHub concluded that the average monthly energy bill for Massachusetts residents is $352.00 made up of $108.00 to electricity, $63.00 to natural gas, $108.00 to motor fuel and $73.48 to home heating oil.

Massachusetts has the 5th highest home heating oil prices in the country, while neighboring Connecticut is ranked 3rd overall.

The WalletHub graphic below ranks the states from lowest average energy bill to highest.

Source: WalletHub

The full publication of WalletHub's study can be found here.

Related Slideshow: Six Charges That Make Your Electric Bill More Expensive

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Transition Charge

Charge: 0.106¢/kWh

Description: Company payments to its wholesale supplier for terminating its wholesale arrangements.

-National Grid Glossary of Terms on Your Bill

The transition rate is a fixed cost associated with the financing that utilities invested in building power-generating facilities (when they had the authority to do so) and the costs associated with divesting themselves of those properties, as required by the 1997 Electric Restructuring Act. These rates enable a utility to recover costs associated with meeting the law's requirements including the divesture of its power-generating facilities. The transition charge is reviewed and reconciled each year by the DPU.

-Mass.gov

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Distribution Charge

Charge: First 600 kWh: 3.701¢/kWh
Excess of 600 kWhh: 4.363¢/kWh

Description: The cost of delivering electricity from the beginning of the Company's distribution system to your premise.

-National Grid Glossary of Terms on Your Bill

Distribution rates are subject to the sole jurisdiction of the Massachusetts Department of Public Utilities (DPU). If an electric distribution company seeks to increase its distribution rate, it must apply to the DPU and subject its costs and revenues to regulatory scrutiny in a rate case.

-Mass.gov

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Customer Charge

Charge: $4.00/month

Description: The cost of providing customer related service such as metering, meter reading and billing. These fixed costs are unaffected by the actual amount of electricity you use.

-National Grid Glossary of Terms on Your Bill

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Renewable Energy Charge

Charge: 0.050¢/kWh

Description: A charge to fund initiatives for communicating the benefits of renewable energy and fostering information, growth, expansion and retention.

-National Grid Glossary of Terms on Your Bill

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Energy Efficiency Charge

Charge: 1.004¢/kWh

Description: The cost of energy efficiency program services offered by the company.

-National Grid Glossary of Terms on Your Bill

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Transmission Charge

Charge: 2.304¢/kWh

Description: The cost of delivering electricity from the generation company to the beginning of the Company's distribution system.

- National Grid Glossary of Terms on Your Bill

The transmission rate is the cost to deliver electricity over high-voltage lines running from power-generating facilities to electric substations, where it enters the distribution system and travels over local power lines to individual homes and businesses. Transmission rates are filed with the Federal Energy Regulatory Commission (FERC), which sets the actual rates. The Massachusetts DPU then oversees the incorporation of the federally approved transmission cost into the rates that power distribution companies in the Commonwealth charge their customers.

- Mass.gov