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Massachusetts utility National Grid announced on November 1 that it had been working with state regulators to potentially implement an electricity rate hike that would actually result in lower electricity bills for customers, according to the Albany Times Union.
The media outlet states that because current surcharges that are tacked onto bills are set to expire, even with higher rates, most customers will see lower electricity rates compared to what they paid while the surcharges were in place. The rate hike would not go into effect until next spring, after the current charges expire.
National Grid explained that when it lowers the rates, it lowers the portion of the bill that shows how much it costs to deliver electricity to a person's home. The other half of the bill, which is for the electricity itself, is controlled by wholesale prices. The utility does not have the power to mark up these costs.
However, if wholesale power prices do rise, Massachusetts residents do have the opportunity to switch energy suppliers if they find the best electricity rate in the region after shopping around.