Massachusetts Electricity Costs: Why Bills Are Skyrocketing and Who Pays the Most

Massachusetts residents are currently facing some of the most expensive electricity rates in the country. According to the U.S. Energy Information Administration, the Commonwealth has the highest electricity costs in the continental U.S. For many households, these costs have shifted from a monthly nuance to an unmanageable financial burden.

A recent poll of Boston.com readers highlights the severity of the situation: 84% of respondents say their electric bills are getting out of control. Some residents report their bills have doubled over the last five years, while others have seen sharp increases—up to 75% in a single year—driven not only by the cost of energy but by hiked-up delivery fees.

The Great Divide: Municipal vs. Investor-Owned Utilities

Not every resident in Massachusetts pays the same rate. There is a stark price disparity depending on whether a community is served by a large investor-owned utility or a locally-owned municipal provider.

The Municipal Advantage

There are currently 42 municipal utility plants serving 52 communities across Massachusetts, accounting for roughly 13% of the state’s energy customers. According to a Boston Globe report, these customers often pay about half as much for electricity as those served by investor-owned companies.

Municipal utilities keep costs lower through several strategic advantages:

• Long-term Contracts: Many lock in electricity at roughly 5 cents per kilowatt-hour through power supply contracts with nuclear plants like Millstone and Seabrook.
• Lower Overhead: Smaller service areas are generally less expensive to maintain.
• Reinvestment: Because they don’t have to deliver returns to shareholders, excess revenue is reinvested into operations rather than paid out as profit.

The Investor-Owned Model

Investor-owned utilities operate on a profit-driven model. The Energy and Policy Institute found that in 2025, Eversource earned nearly 16 cents in profit for every dollar customers paid, totaling approximately $630.6 million in profits. This exceeds the national average of 13 cents per dollar.

The Trade-offs and Barriers to Switching

While municipal utilities offer lower rates, they come with a significant trade-off: customers are typically ineligible for Mass Save, the statewide energy-efficiency incentive program, though some municipal providers operate their own versions. Switching from an investor-owned utility to a municipal system is prohibitively expensive. It requires voters to approve the purchase of infrastructure—including transformers, wires, and poles—a process that can cost millions or even billions of dollars in larger cities.

State Intervention and Relief Efforts

To combat rising costs, Governor Maura Healey has implemented several short-term and long-term strategies to provide relief to residential customers.

Immediate Rate Reductions

In January 2026, Governor Healey announced statewide cuts to winter utility bills. Utilizing $180 million in existing funding, the state reduced electricity bills by 25% and gas bills by 10% for every residential customer during February and March 2026.

Long-term Infrastructure and Policy

The state is also pursuing structural changes to lower costs permanently:

• Canadian Hydropower: A new transmission line from Canada has begun operations, supplying 20% of the state’s electricity via hydropower. This is expected to lower annual bills by a combined $50 million.
• Market Flexibility: Legislation has been filed to allow utilities to operate on the market and lock in the best prices, similar to how private companies operate.
• Fee Transparency: The Governor has called on the Department of Public Utilities to justify every charge on customer bills and eliminate unnecessary fees.

Key Takeaways: Massachusetts Energy Landscape

Looking Ahead

While immediate government subsidies provide temporary breathing room, the long-term stability of Massachusetts energy costs depends on diversifying power sources and increasing transparency in utility billing. As residents continue to explore alternatives like solar panels and municipalization, the pressure remains on the state and large utility providers to bring costs back down to manageable levels.