Massachusetts

In March 1998, electricity deregulation began in Massachusetts. With high energy prices, as well as unfair rate increases for standard services, energy deregulation was the solution for many states. In the early 1990s, many households and businesses in Massachusetts faced rising energy bills, each year increasing higher and higher.

The law was given to voters to decide whether they wanted deregulated energy in the state, however, there was a convincing margin of 65% in favour of having the choice of who supplied their energy. But did they make the right decision?

Well, Massachusetts boasts one of the most popular energy deregulation programs across the whole of the United States, with huge improvements seen in the state’s utility market. With more competition on the market, customers have enjoyed massive savings, along with added benefits for choosing different suppliers.

Even in the first year of deregulated energy, people in Massachusetts saw reductions in the cost of electric rates. One year later, there had been a ten per cent decrease in electricity rates, falling a further five per cent shortly after and holding that same decrease until 2002.


Since the market became deregulated in the state, customers have saved more than one and a half billion dollars. The majority of these savings coming from suppliers implementing price reductions to stay competitive in the market. Compared to other states across America, energy costs in Massachusetts are roughly twenty per cent lower compared to California prices.

There have also been developments in renewable energy sources. Solar energy has seen dramatic growth in Massachusetts thanks to deregulation.

Numerous schemes such as the SMART program, a long-term, cost-effective and sustainable solar project has flourished, with Massachusetts being an ideal location for solar systems. In 2019, Massachusetts was ranked fifth in the United States in installed solar photovoltaic generation capacity.

However, in 2018, 67% of electricity in Massachusetts is generated from natural gas, with none of the supply from coal. The rest of the electricity generation in the state was from nuclear power and renewables such as solar and wind.

Residents in the state can also participate in Community Solar programs, all without the need for rooftop solar panels. Companies like Clearway Community Solar supply clean, renewable energy to homes, with customers receiving credits on their electricity bills.

Homeowners in Massachusetts can also take advantage of Energy Switch Massachusetts, a website allowing customers to switch suppliers and see what options are on the market.

In Massachusetts, there are more than 60 residential electricity providers to choose from. You can find the list of energy suppliers here.

When it comes to utilities, the organisations in charge of the delivery of energy and maintenance of equipment, there are four in charge. They are:

  • Western Massachusetts Electric Company
  • National Grid (Nantucket Electric)
  • Massachusetts Electric Company
  • NStar Electric Company

Looking at prices in the state, for October 2021, Massachusetts commercial electricity rates were 54% higher than the national average at 17.88 ¢/kWh. For residential electricity, rates were 64% higher than the national average at 22.85 ¢/kWh.