Soaring Electricity Bills in Massachusetts: What’s Causing Them and How You Can Take Control
Massachusetts families are in for an expensive summer. According to recent reports, New England households are expected to pay an average of $922 in electricity costs over the summer months, the highest in 12 years. With temperatures rising and energy costs surging, many residents are left wondering how to keep household expenses under control.
While you can't change utility rates or control the weather, you can take steps to manage rising costs more strategically.
What’s Driving the Surge in Electricity Bills?
Increased Demand During Peak Summer Months:
As temperatures climb, so does the demand for air conditioning and cooling systems. This surge strains the grid and drives up wholesale electricity prices, which utility companies pass on to consumers.
Ongoing Supply Chain Disruptions in the Energy Sector:
Global supply chain issues lingering from the pandemic and compounded by geopolitical tensions have impacted the production and distribution of energy infrastructure, such as transformers and power grid components. This slows down grid upgrades and adds cost pressures to the system.
Limited Regional Energy Infrastructure in New England:
New England has limited access to natural gas pipelines and energy imports. This constrained infrastructure makes the region more vulnerable to price volatility, especially during times of high demand or extreme weather.
Higher Delivery Rates and Fixed Utility Costs:
Utility companies pass along delivery charges, grid maintenance fees, and regulatory costs. These fixed expenses are rising, even if your actual usage hasn’t changed significantly.
How Can You Stay Ahead?
Rising energy costs might seem like a budgeting problem, but they’re really part of a larger picture. A good financial advisor can help you:
1. Build a Household Budget That’s Realistic and Flexible
An advisor can help you create a budget that accounts for seasonal fluctuations like winter heating or summer cooling and ensures you’re saving appropriately when bills spike.
2. Identify Rebates and Energy Efficiency Incentives
Programs like Mass Save offer incentives for upgrading your home’s energy efficiency (think: insulation, smart thermostats, or heat pumps). A financial advisor can guide you on:
Which upgrades offer the best return on investment
How to plan for larger expenses like HVAC replacements
Whether it makes sense to finance improvements or pay in cash
3. Plan for Long-Term Cost Resilience
If you’re considering solar panels, a backup generator, or switching from oil to electric, your advisor can help you analyze the upfront costs versus the long-term savings so you’re not guessing with a major investment.
4. Evaluate Utility Plan Choices
In Massachusetts, consumers can opt for third-party electricity suppliers, but not all plans save money. A financial advisor can help you evaluate:
Whether to stay on the default supply rate
How to avoid overpaying with variable-rate contracts
Options for fixed-rate budgeting
5. Align Utility Costs with Your Financial Goals
Maybe you’re saving for retirement or helping kids with college costs. A financial advisor can help you balance short-term cost spikes with long-term priorities, ensuring that energy bills don’t derail bigger goals.
Why It Matters Now
With energy costs at a 12-year high, every dollar saved counts. But managing costs isn’t just about cutting back, it’s about being proactive, strategic, and financially informed. A financial advisor doesn’t just help with investments—they help families make smarter choices across all aspects of their financial life.
Find an Expert Who Can Help
At Financial Fit, we connect you with financial experts who take the time to understand your household challenges, including rising living costs, and provide personalized strategies that fit your goals and values.