As the temperature drops across the nation and cities brace for early winter blizzards, energy pricing in New England skyrockets! Massachusetts consumers were anticipating the price hikes but it’s a tough pill to swallow as other energy costs are dropping throughout the country.
National Grid, the largest utility in Massachusetts, recently received approval for a 37 percent increase in electric bills beginning this month, which will affect 1.3 million consumers. Another Massachusetts utility, NSTAR, asked for a 29 percent increase, starting in January 2015. According to the utility, this will increase residential bills by about $28 per month and will affect more than 1 million customers. Overall, more than 2.3 million consumers in Massachusetts are going to pay these exorbitant prices as the region continues to rely on a network of pipelines unable to supply the increased demand for natural gas. Several pipeline expansions have been proposed but even if they’re approved, will it be enough to bring power prices down in New England in the next few years?
The GOP warns that the rising prices in New England are a sign of times to come for the rest of the nation. The House Republicans feel that the EPA’s stricter regulations are to blame, as well as regulatory “red tape”. Industry leaders tend to have a different point of view and feel that New England has a unique set of circumstances that have led them to the rate increases and that it’s purely the market to blame.
It doesn’t matter which side you agree with or why you feel the problems exist, the fact is consumers are going to pay a premium for their energy this winter and in the years ahead until a strategic plan is in place. If you are not already working with an energy expert to discuss how you can keep your business running throughout these changes, call Power Management today.