Electric bills increase one cent per kilowatt hour

First increase since 2014 means PPA charge now shows on the bill

Middleborough, January 2, 2018 - Middleborough Gas and Electric Department [MGED] bills will show a Purchase Power Adjustment (PPA) for the first time in over three years, representing a 1¢ increase to cover escalating transmission and capacity costs in the New England power supply market and other factors. The PPA had been set at zero since MGED’s last rate restructuring in 2014, which kept it unlisted in the charges appearing on the bill. The increase of one cent per kilowatt hour, appearing in January bills, represents an increase of about 8%, based on typical residential bills. Customers using 750 kilowatt hours will pay about $104 per month. This represents an annual cost increase of about $90.

MGED has been balancing a combination of factors which led to the increase. Milder weather in the summer months resulted in lower energy use and lower sales volume causing MGED’s fixed costs to be spread over fewer kilowatt hours. In addition, market capacity pricing (determined in competitive auctions administered by the ISO-NE, the regional independent system operator) is set at much higher levels until the summer of 2019. MGED has also added significant renewable, peak reducing and clean energy resources recognizing that these additions to the supply portfolio should reduce capacity and transmission costs over time.

Rate comparisons to investor-owned utilities such as Eversource and National Grid continue to show that the increased MGED bills will be about 50% - 70% lower than the most recent typical bills under basic service rates for these utilities. Both Eversource and National Grid requested increases of between 20% - 30% at the end of 2017.

As a municipally-owned utility, MGED is not-for-profit and works to keep all electric and natural gas charges steady and as low as possible. The last increase to the PPA was in July, 2014. MGED serves over 15,000 electric customers in Middleborough and Lakeville and over 5,000 natural gas customers in Middleborough.

 

Questions & Answers About the PPA Increase