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Which Third-Party Electric Suppliers Overcharged Massachusetts Consumers the Most?

In Massachusetts, third-party electric suppliers, also called “competitive suppliers”, are allowed to sell electricity directly to residential...

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Carrie Katan

Massachusetts Policy Advocate

Energy policy & advocacy Electricity and the grid

Which Third-Party Electric Suppliers Overcharged Massachusetts Consumers the Most?

In Massachusetts, third-party electric suppliers, also called “competitive suppliers”, are allowed to sell electricity directly to residential customers of Eversource, National Grid, and Unitil (although the cost of delivering the power is always charged by the local utility). While the idea behind allowing these companies to operate was that they would increase competition and bring down electric prices, this is not how things have worked in practice.

Picture of Carrie Katan Carrie Katan
Energy policy & advocacy Massachusetts Electricity and the grid

Predatory Electricity Suppliers are Causing Real Pain to Consumers

Back in the late 1990s, Massachusetts decided to allow companies, called third-party suppliers, to sell electricity directly to consumers. The theory was that free-market competition would drive down electricity rates as well-informed consumers efficiently made decisions. After a quarter century of allowing these third-party electric suppliers to sell electricity in Massachusetts, we know this hasn’t worked as planned for residential customers.

Picture of Carrie Katan Carrie Katan
Energy policy & advocacy Massachusetts Climate change

How the Massachusetts Budget Can Advance Our Climate Goals

Despite the fact that they get the lion's share of coverage in the media, announcements of new climate programs by Governor Healey or clean energy laws passed by the State House are just pieces of paper. What turns these pieces of paper into real initiatives that can shut down coal plants, get solar projects connected to the power grid, and reduce utility bills, is the work of staff members at agencies like the Department of Public Utilities (DPU), the Department of Energy Resources (DOER), and the Massachusetts Clean Energy Center (MassCEC).

Picture of Carrie Katan Carrie Katan
Energy policy & advocacy Massachusetts

How the “Purchase of Receivables” System Drives Up Everyone's Electric Rates in Massachusetts

In Massachusetts, customers of Eversource, National Grid, and Unitil receive electricity bills that are split into two sections: distribution (or delivery) and supply. The distribution section pays for the utility that physically puts up the wires that move power. When it comes to the supply side of bills, Massachusetts is one of a minority of states that allows residential customers to buy their electricity supply in three ways, from their utility (also known as basic service), from their community through a municipal aggregation plan, or a third-party supplier sometimes called a “competitive supplier.” Even when a customer has chosen to get their supply from a municipal aggregation program or a third-party supplier, they almost always receive one bill sent by their distribution utility with charges for both distribution and supply.

Picture of Carrie Katan Carrie Katan
Energy policy & advocacy Massachusetts

Good Climate Bills in the Massachusetts House of Representatives

On February 7th, Massachusetts State Representatives on the Telecommunications, Utility, and Energy Committee (TUE) led by Representative Roy, House Chair of the Committee, sent several climate and energy bills forward to the next step of the legislative process, the House Ways and Means Committee. It’s taken two months to fully update all the information on the website, but now that all the info is available, we’re excited to highlight nine great sections in the House climate bills.

Picture of Carrie Katan Carrie Katan
Heating Climate change Phasing out fossil fuels

Renewable Propane: A Reality Check

The propane industry has been advocating for the use of renewable propane to reduce emissions for their customer base. According to 2022 American Community Survey estimates, 153,000, or about 5 percent, of homes across Massachusetts and Rhode Island use propane as their primary heating fuel. That is a large enough number to take a close look at what renewable propane is all about. This blog provides a brief introduction to the fuel, if it will ever be affordable, and its climate impacts.  

Picture of Carrie Katan Carrie Katan