READING, MA — Reading Municipal Light Department (RMLD) projects that Massachusetts consumers will pay significantly higher electric bills over the next few years. According to federal government data, electricity prices are on the rise across the country.
Energy prices fluctuate based on changes in supply and demand, which are impacted by extreme weather conditions, economic activity and availability of energy supply.
“RMLD customer costs will likely increase significantly in the next couple of years due to upgraded transmission systems, the retirement of older generating plants and the construction of new power plants, which result in an increase in capacity prices,” said RMLD Integrated Resources Director Jane Parenteau. “We want our customers to be prepared for these upcoming increases.”
RMLD strives to build and maintain relationships with its customers by sharing information on current issues and trends in the electric industry. Its Integrated Resources Department is responsible for purchasing wholesale power, managing energy prices, developing programs and negotiating contracts to mitigate the climbing costs of energy. Focusing on integrated energy solutions that address the capability and capacity of the electric system by targeting the reduction of customer peak demand, RMLD offers energy efficiency recommendations, rebates, demand response and behind-the-meter generation, which could include renewable energy and or traditional fossil fuel.
“Your electric bill is made of four major parts – transmission, capacity, energy and distribution. RMLD manages the first three portions of the bill, subject to ISO-NE [Independent System Operator New England] rules and regulations. The distribution portion of the bill is RMLD’s cost to do business,” said Parenteau.
RMLD will publish a series of articles over the next few weeks to explain how the investments made by major investor-owned utilities (National Grid and Eversource) and privately owned generating plants, plus the cost of energy are increasing your cost of electricity. Look for upcoming articles in the following weeks.
(The above press release is from Reading Municipal Light Department.)