How Much Am I Paying For My Electricity in Springfield Massachusetts?

For many homeowners in Massachusetts, deciphering the complexities of the electric bill can feel like navigating a labyrinth. Understanding these charges, however, is essential for managing your energy consumption effectively and potentially saving money. This guide aims to demystify your electric bill and help you to gain clarity on what you are actually paying for.

Taking It From The Top

When you first open your electric bill, you might be tempted to focus on only the total amount due. After all, it’s the monthly pound of flesh Eversource or National Grid is going to extract from you. What control do you have on how much you are getting charged?

A lot, actually.

Look closely, and you will see that Eversource and National Grid break your bill down into two main components: supply and delivery charges. Knowing the difference between these two charges will help you to lower your energy costs even before you make the switch to solar.

Supply

When starting service with Eversource or National Grid, you are automatically enrolled with them as the energy supplier as well. Every kilowatt-hour (kWh) you purchase from the utility is charged at a fixed price. From the bill below, we can see that this homeowner is getting charged at a rate of $0.14854 for 293 kWh purchased for that month.

During the winter, the utilities will increase the supply charge. During the summer, they will typically lower that same charge.

When graphing out the peaks and valleys, you will notice that your supply rate increases over time.

Did you know that you can lock in a lower rate from another supplier? It’s true! You can lock in a lower rate for 6 to 36 months. Many competitive suppliers play nicely with solar as well, allowing you to buy your power at a lower price and sell your excess solar energy for the full retail rate through net metering.

Just make sure to pick a supplier that does not charge a cancellation fee or a monthly service fee.

Delivery

This part of your bill is almost comically long with over 20 line items! But how much are you actually paying for each kWh?

To determine this charge, we would subtract the fixed Customer Charge ($10.00) from the Subtotal Delivery Services ($51.59). That means that you are directly paying $41.59 for 293 kWh for the month, or $0.1419.

Supply and Delivery Combined

When you combine both components together, you can see that this sample homeowner is paying over $0.29 for every kWh he needs. If you live in National Grid, that rate is even higher!

As you will recall, you can take steps to immediately lower your supply costs with competitive suppliers. But lowering your supply is just part of the equation. How can you effectively eliminate both your supply AND delivery charges?

When you go solar and take advantage of net metering, your solar production will offset both sets of charges. Connect with a solar installer to find out how many panels you will need to address your needs. Inform them of any future electric needs you are planning for the home (electric vehicles, heat pumps, etc), and you will be one step closer to controlling your energy costs!