Publish Date: May 9, 2025

A new report, authored by Advanced Energy United and Demand Side Analytics, identifies ways in which Massachusetts can support electrification without abandoning its energy efficiency and long-term system cost containment imperatives. The report shows that a time-of-use (TOU) electric rate, paired with enhanced energy efficiency efforts, can significantly reduce residential energy bills for electrified homes while mitigating rate increases for all homes.

Massachusetts is a leading state on clean energy metrics with a long history of aggressive energy efficiency programs and bold investments in renewable energy projects. However, the Commonwealth’s growing policy emphasis on electrification of transportation and buildings is hindered by some of the highest electric rates in the country. Because not all alternative rate structures satisfy other related Commonwealth policy objectives related to distributed generation, energy efficiency, and long-term system cost containment, the study primarily examined the customer-level bill impacts of TOU rates. This rate design encourages customers to modify their electricity consumption patterns through energy efficiency, load shifting, and distributed energy, while also mitigating system cost increases that are borne by ratepayers.

The report shows that households pairing electrification with efficiency upgrade can save over $1,000 on their annual energy bills. Just as importantly, as more and more customers electrify, all customers benefit as system-wide cost increases are avoided with smarter rate design.