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.
