Massachusetts residents pay some of the highest energy costs in the nation. Here's why -- and who's responsible.
Massachusetts electricity rates are among the highest in the continental United States -- and the gap is growing.
These are averages. Your actual overpayment depends on your usage, income, and how long you've lived in Massachusetts.
Personalize these numbers■ Policy charges add approximately $288 per year to the average household bill (based on Eversource tariff, 600 kWh/mo)
Massachusetts' entire grid is sized for the handful of hours each year when demand is highest. You pay for that capacity year-round.
Key policy decisions that led to Massachusetts having some of the highest energy costs in the nation.
The state joins the Regional Greenhouse Gas Initiative, a carbon cap-and-trade program that adds costs to power generated from fossil fuels. These costs are passed directly to ratepayers.
The Green Communities Act mandates a 2.5 mills/kWh ($0.0025) surcharge on all electric bills to fund energy efficiency programs — the statutory origin of what became Mass Save. It also creates a 0.5 mill/kWh charge for a Renewable Energy Trust Fund. The Act establishes Massachusetts' participation in RGGI, a carbon cap-and-trade program, and mandates 10-15 year power purchase contracts with renewable developers — locking in long-term cost commitments. The program has grown from $200 million annually to over $1.5 billion in 2025 — a cost borne by all ratepayers.
In 2006, Massachusetts generated only 0.5% of its retail electricity from qualifying renewables. The Green Communities Act's RPS mandate requires utilities to increase renewable procurement by 1% per year to 15% by 2020, with targets including 25% demand-side reduction by 2020 and 20% renewables by 2020. Compliance costs are passed directly to ratepayers.
Then-Attorney General Maura Healey releases a study claiming Massachusetts doesn't need new natural gas pipelines, leading energy companies to abandon two major pipeline projects.
The Northeast Energy Direct pipeline, which would have brought low-cost Pennsylvania natural gas to Massachusetts, is cancelled after years of opposition.
A $10 million state-commissioned study finds 600 MW of energy storage could deliver $800 million in ratepayer benefits, with a benefit-cost ratio of 1.7 to 2.4. But Massachusetts had deployed only ~2 MW of advanced storage — ranking 23rd nationally. The study identifies Massachusetts as having "one of the highest electricity rates in the nation".
While campaigning for governor, Maura Healey explicitly takes credit for blocking natural gas infrastructure.
The Department of Public Utilities issues an order to transition Massachusetts away from natural gas entirely by 2050, despite the state relying on gas for 80% of electricity generation.
Massachusetts experiences severe energy price spikes due to pipeline constraints during cold weather. Governor Healey orders DPU to investigate utility charges -- while critics point to her own role in blocking pipelines.
Massachusetts' own studies identified cost-saving solutions — then failed to act on them.
1,766 MW of energy storage could provide $2.3 billion in ratepayer benefits, including reducing the price paid for electricity and lowering peak demand by nearly 10%.
ISO-NE market rules limited full participation and valuation of storage. "Financiability" and "Certainty of Revenue Stream" were the top barriers — solvable with policy action.
MA had only ~2 MW deployed (23rd nationally) while the study called for 600 MW. Even after H. 4568 clarified that utilities may own storage, deployment lagged far behind.
The 2022 Clean Energy and Climate Plan projected savings. The reality tells a different story.
"Average overall household energy expenditures are projected to decline 8% by 2030 relative to 2019 levels, for an average household savings of $400 per year."
Massachusetts electricity rates are 79% above the national average and rising faster than any other state. Rates have increased 65% in the last decade alone.
The state's own plan acknowledges that "lower income households are less likely to be able to afford the initial expenditures required to electrify" — yet the surcharges to fund these programs hit everyone equally.
How does Massachusetts stack up against other states and what are the factors?
| State | Rate | RGGI Member | Renewable Mandate | Pipeline Constraints |
|---|---|---|---|---|
| Massachusetts | 30.9¢ | ✓ Yes | ✓ 35% by 2030 | ✓ Severe |
| Connecticut | 25.3¢ | ✓ Yes | ✓ 40% by 2030 | ✓ Moderate |
| Rhode Island | 31.2¢ | ✓ Yes | ✓ 100% by 2033 | ✓ Moderate |
| New York | 24.5¢ | ✓ Yes | ✓ 70% by 2030 | ✓ Severe |
| Pennsylvania | 20.1¢ | ✗ No | ✗ Minimal | ✗ None |
| Louisiana | 12.6¢ | ✗ No | ✗ None | ✗ None |
Beyond the electricity you actually use, Massachusetts ratepayers fund numerous policy initiatives through mandatory charges.
Energy efficiency rebate program funded by a mandatory 2.506¢/kWh surcharge on all residential electric bills. Based on Eversource tariff filings with MA DPU.
Mandates that utilities purchase increasing shares of power from renewable sources. The direct RPS compliance charge is 0.050¢/kWh per Eversource tariff.
The Regional Greenhouse Gas Initiative requires utilities to purchase carbon allowances at auction. This implicit tax is added to bills.
Recovers costs from net metering credits paid to solar generators. Combined distributed solar and net metering surcharge totals 1.208¢/kWh per Eversource tariff.
Additional renewable energy requirement beyond the main RPS. Governor Healey's 2025 bill proposes phasing this out -- an acknowledgment it drives up costs.
Ratepayers fund pipeline repairs with guaranteed 7-9% returns to utilities. Lifetime payments estimated at $31,000 per gas customer.
Massachusetts consumes twice as much electricity as it produces and generates 80% of its power from natural gas. Yet the state has blocked pipeline infrastructure that would bring affordable gas from nearby Pennsylvania.
Result: During cold weather, the state must import expensive liquefied natural gas (LNG) by tanker -- often from overseas -- at prices far higher than piped domestic gas.
Massachusetts residents deserve to know why they pay so much more than the rest of the country -- and who made the decisions that got us here.