Understanding your Energy Costs

Cold winter weather and rising costs have led many customers to see an increase in their electric bill this winter.  The Cape Light Compact believes it is important for customers to have an explanation of the components that make up their energy bill and to better understand what they can do to reduce their energy use.

Residential energy bills are made up of two components:

  1. The Supply Charge, which is the cost of the electricity purchased from either the Cape Light Compact, the Electric Distribution Company (Eversource for customers on Cape Cod and Martha’s Vineyard), or a competitive supplier. This charge is paying for the physical electrons that flow through the wires to power the devices and equipment in your home.
  2. The Delivery Charge, which is made up of ten different charges, which can be found in the pie chart below. These charges help to fund the infrastructure of the grid, such as poles and wires, and include charges that fund public policy initiatives like the installation of Electric Vehicle (EV) charging infrastructure, the Mass Save Energy Efficiency Programs, and state sponsored solar program such as net metering and the Solar Massachusetts Renewable Target (SMART). For a full breakdown on what is included in each of these charges visit https://www.mass.gov/info-details/understanding-your-utility-bill.

Cape Light Compact’s residential electric supply rates have decreased this winter to 12.024 cents/kWh, the lowest rate since 2021, but many customers may still see an increase in their overall bill.

This increase is mainly due to increases in the distribution charge, the cost Eversource charges to maintain and improve the local electrical grid, and the Energy Efficiency charge which funds the Mass Save Energy Efficiency programs. For an average customer using 700 kWh of electricity per month, these two increases will add approximately $22 dollars to the delivery charges over their last monthly bill in 2024.

The most effective way to reduce energy costs is to reduce energy usage. The Compact recommends that customers enroll in a no-cost home energy assessment. During the assessment, an energy specialist may identify energy-saving opportunities, including increased insulation and air sealing. Customers who income-qualify with Cape Light Compact can receive additional money off recommended upgrades. The Compact’s standard incentive covers 75% of the cost of insulation, income-qualified covers can receive this work at no-cost. Customers can sign up by calling 1-800-797-6699.

Customers are encouraged to check the supply section of their bills to determine if they are receiving supply from the Compact – if you see “NextEra Energy Services - CLC” listed next to “Supplier” then you are on the Compact’s supply. Customers not currently receiving their power supply from Cape Light Compact who wish to opt in can do so online at www.capelightcompact.org/power-supply or by calling the Compact’s power supply provider, NextEra Energy Services, at 1-800-381-9192.

The Compact’s supply rates and how they compare to Eversource Basic Service are always available here. If you are considering contracting with a competitive supplier, be sure to review our consumer resources page to ensure you understand how to evaluate the terms and conditions of the agreement.

Customers can also sign up for “Balanced Billing” with their electric and gas utilities. This allows the high winter energy costs, that are the result of heating usage, to be spread across all 12 months of the year, helping consumers better plan for energy costs all year round.

Customers who are income eligible may qualify for discounted electricity pricing which can help lower energy costs significantly. See below for assistance to access these discounted rates or to get help with managing past due bills.

For help managing past due electric bills:
Go online or call Eversource at (866) 315-2496 and ask about their new Arrearage Forgiveness Program

To inquire about natural gas discount rates:
Go online or call National Grid at (800) 532-9600

To inquire about electric discount rates:
Go online or call Eversource at (800) 592-2000

To apply for fuel assistance:
Go online or call South Shore Community Action Council (508) 778-0870