Electric bills increase one more cent per kilowatt hour

PPA charge is now 2 cents to pay for increases in power capacity costs for the rest of the year

Middleborough Gas and Electric Department [MGED] has increased the  Purchase Power Adjustment (PPA) to 2¢ to cover ever-increasing transmission and capacity costs in the New England power supply market and other factors. The PPA had increased to 1¢ in January for the first time in 3 years. This latest increase of one cent per kilowatt hour, represents an rise of about 8%, based on typical residential bills. Customers using 750 kilowatt hours will see bills increase to about $112 per month. This represents an annual cost increase of about $90.

The PPA is a direct flow-through of actual power supply costs combined with forecast power supply costs. “As we had expected, transmission costs continue to increase at a steady pace and capacity costs have increased by about $4 million annually,” said General Manager Jackie Crowley. In addition, market capacity charges (determined in competitive auctions administered by the ISO-NE, the regional independent system operator) are set at much higher levels until May of 2019. Damage from the March nor’easters added over $500,000 of incremental costs for the year as well, costs which may be reimbursed by the Federal Emergency Management Agencies, but after a lengthy process.

Rate comparisons to investor-owned utilities such as Eversource and National Grid continue to show that the increased MGED bills will be about 50% lower than the most recent typical bills under basic service rates for these utilities.

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. 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