Understanding What the August 1st Eversource Rate Hike Means for Your Monthly Bill

If you rely on Eversource Energy for your electricity, your monthly utility statement will soon look a bit different. Starting August 1st, Eversource basic service electricity rates are going up.

Rising energy costs continue to hit household budgets across Massachusetts, making it essential to understand why these rate hikes happen, how much more you’ll actually pay, and what options you have to soften the blow. Here is a full breakdown of the rate increase, the math behind your new bill, and practical ways to lower your costs.

The Numbers: How Much Are Rates Increasing?

Beginning August 1, Eversource’s basic service supply rate will increase by 10.8%.

• Previous Rate: 15.63¢ per kWh ($0.1563/kWh)
• New Rate: 17.32¢ per kWh ($0.1732/kWh)
• Net Difference: An increase of 1.69¢ per kWh

Keep in mind that this adjustment applies specifically to the supply portion of your electricity bill—the actual cost of generating and procuring electricity on the open market. Delivery charges (the cost of maintaining grid infrastructure, power lines, and poles) are billed separately.

The Math: What Does a 1,000 kWh Monthly Bill Look Like?

To see how this rate hike impacts your pocketbook, let’s take a typical high-usage household consuming 1,000 kWh during peak summer months (when air conditioning runs heavily).

Here is how the supply charge breaks down before and after August 1:

Previous Monthly Supply Cost = 1,000 kWh x $0.1563 = $156.30
New Monthly Supply Cost = 1,000 kWh x $0.1732 = $173.20

• Monthly Impact: Your supply charge increases by $16.90 per month.
• 6-Month Impact: Over a standard six-month rate cycle (August through January), using 1,000 kWh per month will result in paying $101.40 more in total electricity costs.

Note: If your household consumes less—say, a standard average of 600 kWh per month—your monthly supply cost will jump from $93.78 to $103.92, adding about $10.14 per month to your bill.

Why Is Eversource Enacting This Rate Hike?

Utility rate adjustments are strictly regulated by state regulatory commissions (like the Department of Public Utilities in Massachusetts). Utilities don’t simply raise prices at will; rate adjustments reflect broader market conditions and structural operational costs.

Key factors driving the August 1st rate adjustment include:

• Seasonal Market Volatility & Natural Gas Prices: New England relies heavily on natural gas to generate electricity. Supply rates reset every six months to match wholesale energy market forecasts. Rates rise heading into late summer and winter to account for regional energy demand surges.
• Grid Reliability & Infrastructure Spending: Modernizing an aging electrical grid, upgrading power lines, and hardening infrastructure against severe weather require significant capital investment.
• Clean Energy Transition Investments: State environmental mandates require utilities to integrate increasing amounts of renewable energy—including regional solar and offshore wind projects—into the regional power grid.

Where to Find Relief: Utility Assistance Programs

If rising utility bills threaten your budget, several financial assistance options exist across federal, state, and utility-specific levels:

1. Federal & State Assistance

• LIHEAP (Low-Income Home Energy Assistance Program): A federally funded program administered at state levels that provides income-eligible households with direct grants toward heating and cooling utility costs.
• Fuel Assistance & Community Action Agencies: Local community action programs help qualify low-income residents for utility bill discounts, crisis grants, and protection against seasonal service shut-offs.

2. Eversource Utility Programs

• Discount Rates: Low-income customers who receive state assistance (such as SNAP, MassHealth, or SSI) may qualify for a residential low-income discount rate, which reduces overall delivery costs significantly.
• Budget Billing: Spreads your total yearly electricity costs evenly across 12 monthly payments, avoiding seasonal summer and winter bill spikes.
• Flexible Payment Plans: Deferred payment arrangements and arrearage management programs (like the Forgiveness Program) allow eligible past-due balances to be forgiven over time as long as current monthly payments are made on time.

Lowering Your Demand: How Mass Save® Helps

For Massachusetts residents looking to lower their electric usage permanently, Mass Save® offers significant help.

Mass Save is a collaborative of Massachusetts’ electric and natural gas utilities and energy efficiency service providers. Its primary goal is to provide residents and business owners with the resources, incentives, and technical support needed to cut energy waste.

How Mass Save Can Slash Your Bill:

• Free Home Energy Assessments: A trained specialist inspects your home’s insulation, lighting, and HVAC systems to spot energy loss.
• Generous Rebates on Upgrades: Access thousands of dollars in rebates for high-efficiency heat pumps, heat pump water heaters, and smart thermostats.
• 100% Insulation Coverage & Sealing: Significant discounts (often 75% to 100% off) on air sealing and home insulation projects, which drastically reduce energy loss in both summer and winter.
• 0% HEAT Loan Financing: Offers 0% interest financing for qualifying energy-efficient home improvements.

Taking Control: Shopping for Better Rates with Energy Choice

You don’t have to stay on Eversource’s Basic Service supply plan. Under Energy Choice (energy deregulation), Eversource continues to deliver power to your home and maintain the grid. Still, you have the legal right to purchase your electricity supply from a competitive third-party retail electricity supplier.

How to Shop for Competitive Energy Rates:

1. Compare Offers on a Marketplace: The state-run website, Energy Switch Massachusetts, is the state’s vetted shopping portal where all providers will be listed. However, not all electricity providers are created equal. Our online marketplace vets providers for the best rates, reputation, and customer satisfaction so you only see competitive prices from the best electricity providers in Massachusetts.
2. Check Current Basic Service Rates: Compare competitive supplier fixed rates against Eversource’s new 17.32¢/kWh benchmark.
3. Review Contract Fine Print Carefully:
   • Fixed vs. Variable: Choose a fixed rate contract so your price per kWh won’t suddenly jump.
     Contract Term Length: Check if the rate is locked in for 6, 12, or 24 months.
   • Hidden Fees & Penalties: Ensure there are no early termination fees (ETFs) or monthly administrative maintenance charges.
4. Consider Municipal Aggregation: Check if your city or town offers a Community Electricity Aggregation (CEA) program. Municipalities often leverage the collective buying power of their residents to lock in lower, fixed long-term supply rates than the standard utility basic service.

The Bottom Line

While a 10.8% rate hike isn’t welcome news, taking proactive steps can buffer your household budget. By combining energy efficiency programs like Mass Save, exploring financial assistance options, and shopping for competitive supply rates, you can maintain full control over your electric bill this season.