The two major utilities in our area that deliver heating to our homes are Eversource and Nationalgrid. They purchase energy from different suppliers. Homes in New England are primarily heated by natural gas or by electricity that is generated by natural gas. Both companies have announced major increases in home heating costs this winter as demand skyrockets in cold weather. Prices are going up on both the delivery and the supply side.
Eversource has requested the state Public Utilities Regulatory Authority to authorize an increase on the supply side of a customer’s bill that the firm claims will increase an average customer’s monthly electric bill by 23 percent. Customers who receive their energy supply from Eversource would see a change from 17.9 cents per kilowatt-hour (kWh) to 25.6 cents per kWh in their basic service rate. If authorized, Eversource said the higher prices would be effective starting on January 1, 2023 through June 30, 2023. Other fees such as delivery fees are expected to increase as well, but the rate has yet to be determined.
The request can be traced to the letter sent to President Joe Biden by Joseph Nolan, the CEO of Eversource.
Eversource has warned that New England may not have enough heating sources to heat a household this winter. On October 27, Joseph Nolan wrote a letter to President Joe Biden, sharing his worries about the energy shortage in New England. In his letter, he stated that though Eversource is investing in clean energy, which can alleviate dependency on natural gas electricity, the New England area remains reliant on natural gas to satisfy our electricity demands this winter and in the near future.
The reason behind this shortage is due to the Ukraine conflict. Imported LNG (liquid natural gas) is not available in sufficient quantities to satisfy the region’s demands this winter without putting further strain on European markets and the American economy. Furthermore, given the conflict in Ukraine, increased reliance on foreign-sourced natural gas poses a specific national security risk at this time.
He asked Biden to utilize the federal government’s emergency powers to guarantee that sufficient fuel supplies are available in the case of a colder-than-expected winter in New England.
“This represents a serious public health and safety threat,” he said. “Consumers in New England are already experiencing skyrocketing electricity and gas costs given supply constraints and global price pressures following the Russian invasion of Ukraine.”
He listed some emergency authorities that could relieve the risk to electric reliability New England faces this winter. He urged Biden to direct the Secretary of Energy to summon all relevant parties to create a strategy to ensure the region is prepared to meet the challenges that one or more extreme winter weather events would present, utilizing both market participants and the federal government’s emergency authorities.
Nationalgrid
According to the Nationalgrid, the monthly bill of a typical residential electric customer using 600 kWh will increase from $179 in the winter 2021-2022 season, to approximately $293 for the winter 2022-2023 season, or a 64 percent increase, driven by higher electric supply prices. These changes are expected from November 1 to May 1, 2023.
To help consumers cope with the increase in their electric bills, Nationalgrid launched Winter Customer Savings Initiative. The initiative recently committed $17 million in additional funding to help low- and moderate-income customers manage higher energy bills this winter. It also highlighted some effective programs, such as discount rates; a forgiveness program that will reduce eligible patron’s past due balance; and energy-saving programs.
Eversource lists several payment programs on their website.
Other resources
Several other resources are also available for you to cope with rising energy prices.
With a $2,000 utility allowance, Boston’s Rental Relief Fund can assist tenants with 1) past due bills (from March 13, 2020); 2) current utility bills (including internet); and 3) home energy expenses ($2,000 utility allowance). To be eligible for the program, you need to be a resident of the city of Boston; have an AMI (Area Median Income) of 50% or less; be at risk for homelessness or housing instability; be economically impacted by COVID-19; and NOT be a full-time college or graduate student. Immigration status is not asked. If you are an Eversource or Nationalgrid Customer living in Boston, Brookline, Newton, or one of the Mystic Valley cities and towns of Malden, Medford, Everett, Melrose, Winchester, Woburn, or Stoneham and receive ABCD Fuel Assistance services, you are also eligible for their utility bill advocacy program (sometimes known as “arrearage management”). ABCD can assist you in negotiating debt forgiveness and a reasonable payment plan so that you can make your monthly payments. Your debt may be forgiven up to $1,500-$2,000 per year if you follow a modified payment plan, depending on your circumstances. Contact National Grid at 800.233.5325 or Eversource at 866.315.2496 to take advantage of these programs.
