Ever wonder what you’re paying for every month when you get your bill? There are basically four parts of your electric bill.
1. The Commodity used to make the electricity (Blue). The commodity – natural gas, coal, or oil – that is used in power plants to make your electricity. This is by far the biggest part of your bill, and here in Massachusetts, where we are at the end of the energy pipeline, we are at the mercy of global energy prices. See in the graph how the blue part, the Commodity, is volatile? In 2005, when Hurricane Katrina hit, knocking out natural gas pipelines, the price of natural gas shot up, and so did our electricity rates. Since we don’t have any coal, oil, or natural gas in Massachusetts, we have two ways we can reduce that blue part. We can ramp up energy efficiency and develop more homegrown renewable energy like solar and wind. Both of these efforts have been priorities of the Patrick-Murray Administration, and this year, for the first time, Massachusetts is #1 in the country in energy efficiency beating out California.
2. The Distribution charge (Purple): This is what it costs for your electric company to deliver the electricity to your house – the wires, substations, repair trucks, etc. This is the only portion of your bill that the state directly regulates. The Department of Public Utilities closely regulates the utilities and makes sure that what it charges for this portion is fair and reasonable. This is also the portion of the bill in which there are charges to invest in the state’s energy efficiency and renewable energy programs. For every dollar that is invested in all these programs, we get two dollars in savings! And remember, these are how we reduce our dependence on fossil fuels that come from outside of Massachusetts. Notice that the graph shows that this part of the bill has been relatively stable in the last decade – even with new energy efficiency and renewable investments.
3. Transmission charge (Green): This portion of the bill pays for the big interstate transmission wires that make up the backbone of the electric grid. This is regulated by the federal government.
4. Transition charge (Red): This is a leftover charge from when the state’s electricity system was restructured in the late 1990’s. This charge will soon disappear.
HVAC Challenges? How Arlington Gets Answers posted on Apr 22
I wanted to understand, day or night, on site or off, if my heating and cooling systems were operating efficiently. While not at the same scale as software giant, Microsoft, Arlington is utilizing the same fault detection and diagnostics software program, to analyze operations and upgrade HVAC efficiency.
Supporting Massachusetts Agriculture Through Energy Grants posted on Apr 13
Growing up on a small dairy farm in New England, I experienced both the joys and challenges that family farms face on a daily basis. I know firsthand the impact fuel and maintenance costs or water and electricity bills have on the viability of a …Continue Reading Supporting Massachusetts Agriculture Through Energy Grants
Monson Town Hall Rebuilt Efficiently After Tornado posted on Apr 3
Dark clouds have yielded a silver lining in Monson—one of several towns that suffered serious damage when tornadoes blew through southwestern Massachusetts in June 2011, flattening trees, ruining buildings, and leaving many homeless. Monson town officials are looking to an April 11th Dedication Ceremony and …Continue Reading Monson Town Hall Rebuilt Efficiently After Tornado