Eversource, an electricity services company headquartered in Boston, Massachusetts, recently announced that they plan to reduce their electricity rates during the summer months of 2017. With over 1.7 million customers, the company hopes that this decrease will contribute to its mission of delivering safe, affordable and reliable energy to western areas of the state.
Details on Changes
According Massachusetts state law, Basic Service supply rates need to change twice a year. These changes take place on pre-defined dates: January 1st and July 1st. Due to this law, Eversource put in this request earlier this month with the Department of Public Utilities (DPU) of Massachusetts. This request would take effect on July 1, 2017 and would lower — instead of increase as most customers anticipate — current rates.
In actual numbers, Eversource would like to change current Basic Supply service rate of 9.12 cents per kWh to 8.56 cents per kWh.
Based on information provided in a news release published by Eversource, the reduction in rates is defined as a 6 month Base Service price. The 6 month Base Service price is based on the lower Basic Service supply rate. In other words a “pass-through cost to customers for the price of generating power.” What this means is that because Eversource is an investor-owned utility, they have the ability to purchase electricity for their customers from wholesalers. The benefit to this is that the same wholesale price is then given to their customers. They do not need to mark up the price of electricity. Savings are passed directly on to the consumer.
Impact on Eversource Customers
The reduced rates will have an impact on the customer’s invoice for an estimated six month period. Customers can expect to pay a lower amount, especially during the summer months. For residential customers who consume an average of 550 kWh, their monthly bill will lower by $3.09 — from 115.38 to $112.29. When it comes to commercial and industrial customers, the rates will drop to 7.07 cents per kWh. This is a 1.65 cent per kWh difference from the 8.72 cents per kWh rates for the period of July 1 to December 31 of 2016.
“While New England continues to experience many energy challenges, this summertime price cut is good news for our customers as the weather gets warmer and folks start turning on their fans and air conditioners for relief from the heat,” Penni Conner, Senior Vice President and Chief Customer Officer at Eversource said in the Eversource release. “It’s also important to remember we offer a variety of energy efficiency programs that can help customers save energy and money year-round, along with convenient monthly payment options.”