What to know about winter rate increases

National Grid’s electricity supply prices will increase significantly in Massachusetts this fall and winter. It is normal for Massachusetts electricity prices to increase some each winter as cold-weather heating demand drives up the price of natural gas, which is the primary source of fuel for our electricity grid. However, this year’s increase will be much greater than in a typical year. The increase is the result of a number of factors, including the global energy crisis that is being fueled by the war in Ukraine.

As a result, beginning November 1, residential customers enrolled with National Grid’s Basic Service will see their Supply Services price increase from 11.491 ¢/kWh to 33.891 ¢/kWh. This new price will remain in place for 6 months through the end of April.

Salem PowerChoice provides protection

Electricity customers in Salem that are currently enrolled in Salem PowerChoice (www.salemma.gov/powerchoice), the City’s electricity program, will see no increase in their electricity supply price. The PowerChoice Standard price will remain at 11.317 ¢/kWh, which means a savings of $108 per month compared with National Grid’s price for an average Salem household.

While most program participants are enrolled in PowerChoice Standard, which provides an additional 15% renewable electricity over and above the minimum required by the state, the program’s other two options also provide protection from National Grid’s upcoming rate increase:

• PowerChoice Green will remain at 13.709 ¢/kWh for 100% renewable electricity.
• PowerChoice Basic will remain at 10.750 ¢/kWh for the minimum amount of renewable energy required by state law.

All Salem PowerChoice prices are fixed until December 2024.

Salem PowerChoice has already saved residents and businesses $3.7 million since its launch in January 2016. This winter, the City anticipates that the program will save Salem electricity customers an additional $9.9 million. In addition, Salem PowerChoice is helping the City to take big a step toward its sustainability goals. Because of the renewable energy purchased through the program, participants in Salem PowerChoice are reducing the city’s carbon footprint by over 11,000,000 pounds of CO2 per year, equivalent to removing over 1,000 passenger cars from the road or eliminating the electricity use of 2,500 Salem homes.

New electricity customers in Salem are encouraged to enroll, and currently active Salem PowerChoice participants are free to move between program options at any time with no fee or penalty. It is important to note, however, that for any customer who previously opted out of Salem PowerChoice and now wishes to enroll, Salem’s electricity supplier is entitled to charge a market price for the remainder of the current electricity supply contract. In addition, while Salem PowerChoice is providing savings through April 2023, future savings cannot be guaranteed because National Grid’s prices will change in the future and their future prices are not known.

Other steps you can take to manage energy costs

National Grid has launched a Winter Customer Savings Initiative (www.nationalgridus.com/News/2022/09/To-help-customers-address-increasing-energy-supply-prices,-National-Grid-launches-the-Winter-Customer-Savings-Initiative-to-provide-options-to-manage-costs-and-secure-assistance/), which includes a new website (www.nationalgridus.com/heretohelp) and fact sheet that outlines ways in which customers can help manage their bills and seek assistance.

In addition, a no-cost home energy assessment from Mass Save for your home or businesses can help you identify ways to reduce your electricity use by making your home more energy efficient. Through the assessment, you can learn more about the state incentives available for making energy efficiency efforts more affordable. Mass Save home energy assessments are available to all electricity customers in Salem, whether they rent or own. Information about obtaining a no-cost home energy assessment from Mass Save is available from MassSave.com.

Information about Salem PowerChoice is available at www.salemma.gov/powerchoice.