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More Community Corner Three ‘munis’ deliver lowest rates
Municipally owned utilities in Littleton, Norwood and Peabody offer the lowest residential electricity rates in the state, according to figures compiled by the Massachusetts Municipal Wholesale Electric Company.
The rankings are based on final figures for the month of September and preliminary rankings for October, according to Dave Tuohey, communications director for the state-supported public energy partnership, which tracks both public and private utility companies. In both the September figures and preliminary October figures, Littleton, Norwood and Peabody had the lowest rates, Tuohey said.
The preliminary numbers for October indicate that most of the state’s 41 municipally owned utilities offered lower rates than investor-owned utilities such as National Grid and Boston Edison. Both Littleton and Peabody, according to figures provided by Scott Edwards, assistant general manager of the Littleton Electric Light Department, charged residential rates of about $100 per 1000 kilowatt hours of energy, compared to $149 for National Grid and roughly $170 for Boston Edison.
“The bottom line is that municipal utility rates are significantly lower than the rates of investor-owned utilities,” Tuohey said.
Unlike their investor-owned counterparts, the “munis” do not need to generate profits for stockholders and are allowed to own their own generating equipment, which can help protect ratepayers from volatility in energy markets, Tuohey said.
No new municipally owned utility company has been created in Massachusetts since 1926, partly due to concern that the incumbent electricity provider could block creation of the entity by refusing to sell its distribution equipment to the city or town. The MMA has been supporting legislation that would require the investor-owned utility company to sell the distribution equipment once a fair market price has been established.
More Community Corner Three ‘munis’ deliver lowest rates
Three ‘munis’ deliver lowest rates
Municipally owned utilities in Littleton, Norwood and Peabody offer the lowest residential electricity rates in the state, according to figures compiled by the Massachusetts Municipal Wholesale Electric Company.
The rankings are based on final figures for the month of September and preliminary rankings for October, according to Dave Tuohey, communications director for the state-supported public energy partnership, which tracks both public and private utility companies. In both the September figures and preliminary October figures, Littleton, Norwood and Peabody had the lowest rates, Tuohey said.
The preliminary numbers for October indicate that most of the state’s 41 municipally owned utilities offered lower rates than investor-owned utilities such as National Grid and Boston Edison. Both Littleton and Peabody, according to figures provided by Scott Edwards, assistant general manager of the Littleton Electric Light Department, charged residential rates of about $100 per 1000 kilowatt hours of energy, compared to $149 for National Grid and roughly $170 for Boston Edison.
“The bottom line is that municipal utility rates are significantly lower than the rates of investor-owned utilities,” Tuohey said.
Unlike their investor-owned counterparts, the “munis” do not need to generate profits for stockholders and are allowed to own their own generating equipment, which can help protect ratepayers from volatility in energy markets, Tuohey said.
No new municipally owned utility company has been created in Massachusetts since 1926, partly due to concern that the incumbent electricity provider could block creation of the entity by refusing to sell its distribution equipment to the city or town. The MMA has been supporting legislation that would require the investor-owned utility company to sell the distribution equipment once a fair market price has been established.
Written by MMA Associate Editor Mitch Evich
