Massachusetts has expensive electricity—but options exist
New England electricity prices are among the highest in the nation. But Massachusetts businesses can choose their supplier—and the right choice can cut 15-25% off your supply costs.
Why Massachusetts electricity costs more—and what you can do about it
Massachusetts is part of ISO New England, a region with limited natural gas pipeline capacity, aging infrastructure, and aggressive clean energy mandates. The result? Some of the highest commercial electricity rates in the continental U.S.
But deregulation gives Massachusetts businesses a choice. You can stay on your utility's Basic Service rate—which fluctuates every 6 months—or lock in a competitive supplier rate that provides budget certainty and often real savings.
The spread between Basic Service and competitive rates varies, but we frequently see 10-20% savings available for businesses that actively shop.
What makes Massachusetts commercial electricity unique
- 1Winter price spikes are real
New England's constrained gas pipeline capacity means wholesale electricity prices can spike dramatically in cold winters. If you're on a variable or indexed rate without protection, January bills can be brutal.
- 2Basic Service changes every 6 months
Unlike some states where utility default rates change quarterly, Massachusetts Basic Service rates reset in January and July. This creates specific windows where competitive rates look more or less attractive.
- 3Clean energy requirements add costs
Massachusetts has aggressive Renewable Portfolio Standards (RPS). Suppliers must include renewable energy certificates (RECs) in their supply. This is built into rates but varies between suppliers.
- 4Demand charges matter for larger accounts
Massachusetts commercial accounts with higher demand (typically >100 kW) face demand-based delivery charges. Your peak usage affects both your supply and delivery costs.
Massachusetts utility territories we serve
We work with businesses across all Massachusetts electric distribution companies:
Eversource (NSTAR)
Greater Boston
Eversource (WMECO)
Western Massachusetts
National Grid
Central & South Shore
Unitil
North Shore
Massachusetts businesses we help
Not in Massachusetts? We also serve businesses in Texas, Ohio, Pennsylvania, and other deregulated states.
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Massachusetts commercial electricity questions
What's Basic Service and how does it compare to competitive rates?
Basic Service is the default electricity supply rate your utility charges if you don't choose a competitive supplier. It's set through a competitive auction process and changes every 6 months (January and July). Competitive suppliers often beat Basic Service rates, especially on longer-term contracts that provide price stability.
Should I lock in a fixed rate or go variable in Massachusetts?
For most Massachusetts businesses, we recommend fixed rates. New England's winter price volatility makes variable rates risky—a polar vortex can double or triple your supply costs for a month. Fixed rates provide budget certainty and protection from spikes. The premium you pay for a fixed rate is often worth the peace of mind.
Do I need to do anything about renewable energy requirements?
No—suppliers handle RPS compliance automatically. The cost of renewable energy certificates (RECs) is built into your rate. However, if you want to go beyond compliance with 100% renewable energy or specific clean energy products, many suppliers offer those options. We can help you evaluate the cost vs. benefit.
What about community choice aggregation (CCA)?
Many Massachusetts municipalities have CCA programs that automatically enroll residents and small businesses in a community-selected supplier. If you're in a CCA, you can still opt out and choose your own supplier. For larger commercial accounts, direct supplier contracts typically offer better rates than CCA programs—we can compare for you.