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Massachusetts deepens winter electricity discounts for heat pump households

Lower transmission rates from two utilities will save more than 65,000 heat pump households in Massachusetts money starting this winter.

By Emre Başaran1 min read
Gemini
Gemini

Massachusetts regulators have approved deeper winter electricity discounts for heat pump owners, lowering transmission rates from utilities National Grid and Unitil starting November 1. The change builds on the state's first-in-the-nation requirement that major utilities offer seasonal pricing specifically for heat pump customers.

National Grid's transmission rate will drop from $0.055 to $0.02 per kilowatt-hour, while Unitil's will fall from $0.042 to $0.015 per kilowatt-hour. A household using 600 kilowatt-hours a month can expect an additional $16 to $21 in savings this winter. More than 65,000 Massachusetts households are expected to benefit.

The pricing reflects grid economics: winter demand peaks in the region are still lower than summer peaks, so heat pump customers running more electric heating in winter don't add to the infrastructure costs that utilities pass on to all ratepayers. Last winter's program saved residents more than $37 million in total, and climate think tank Switchbox estimates this season's expanded discounts could add another $9.8 million in savings. Grid operators expect the region's winter demand to eventually exceed summer peaks within a decade, which would require a different rate structure down the line.

Based on reporting by Sarah Shemkus for Canary Media. Read the original: https://www.canarymedia.com/articles/heat-pumps/massachusetts-increase-winter-heat-pump-rates

This article was produced with the assistance of AI tools and reviewed by an editor before publication.

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