Utility Rate Hike Approvals in Massachusetts, Connecticut, and New Jersey: How to Respond Before Your Next Bill Arrives

If you run a business in Massachusetts, Connecticut, or New Jersey, your electric bill is about to get more expensive — and in several cases, it already has. State utility commissions in all three of these deregulated Northeastern states have approved or are in the process of approving significant utility rate hike increases, driven by infrastructure investment requirements, capacity market changes, and the ongoing transition away from fossil fuel generation. For business owners who haven't taken proactive steps, the next bill they receive could be a jarring surprise. For those who act now, there's still time to minimize the damage.

This guide provides a state-by-state breakdown of the approved and pending rate increases in Massachusetts, Connecticut, and New Jersey — with plain-English explanations of what's driving each hike and exactly how much more you can expect to pay. More importantly, it lays out five proven strategies that businesses and property owners in these states are using right now to protect themselves from state-approved rate increases before the next billing cycle. One of the most powerful tools — switching to a competitive energy supplier — takes just days to execute and can offset a significant portion of any utility rate increase.

You don't have to be a passive victim of your state's regulatory process. The deregulated energy markets in Massachusetts, Connecticut, and New Jersey give you more options than most Americans realize — and the businesses using them are paying less than their neighbors every single month.

Massachusetts, Connecticut, and New Jersey Utility Rate Hikes Explained: What Businesses and Homeowners Need to Know Right Now

The Northeast has consistently ranked among the highest-cost electricity regions in the contiguous United States. The ISO-New England grid, which serves Massachusetts and Connecticut, faces structural cost pressures that are unlikely to abate in the near term. New Jersey, served by PJM, faces its own set of capacity market and infrastructure challenges. Here's the current state of play in each market.

Massachusetts: Eversource and National Grid Rate Increases

Massachusetts businesses and commercial property owners have been hit with a series of electricity rate adjustments. Eversource Energy — which serves approximately 1.4 million electric customers in Massachusetts — has seen its basic service rate (the default supply rate for customers who haven't chosen a competitive supplier) fluctuate sharply with natural gas market conditions. The Massachusetts Department of Public Utilities (DPU) approved delivery rate increases that added an estimated $15–$25/month to a typical commercial account in 2024, with additional capital recovery charges expected through 2025.

National Grid, serving western Massachusetts, filed and received approval for distribution rate increases tied to its multi-year capital improvement program. The rate case approved delivery charge increases of approximately 9–12% on a per-kWh basis for commercial customers, effective in phases through 2025. For a commercial account consuming 25,000 kWh/month, this translates to $200–$400 in additional monthly delivery charges — purely from the regulated, non-negotiable portion of the bill.

Connecticut: Eversource and United Illuminating Rate Pressures

Connecticut has the highest average commercial electricity rates in the contiguous U.S. — and 2025 is not bringing relief. Eversource Connecticut and United Illuminating (part of Avangrid) serve virtually all commercial accounts in the state, and both are navigating rate cases tied to significant grid infrastructure investment programs.

The Connecticut Public Utilities Regulatory Authority (PURA) approved a Connecticut energy rate increase for Eversource that added delivery charges for commercial customers, with increases justified by the Avangrid Transmission investment program and the New England Clean Energy Connect (NECEC) transmission project. The rate hike, phased in through 2024–2025, adds an estimated $0.008–$0.012/kWh to the delivery component of commercial bills. For a business consuming 50,000 kWh/month, that's $400–$600 in additional monthly costs — roughly $5,000–$7,200 per year — from delivery alone.

New Jersey: PSE&G and JCP&L Infrastructure Investment Recovery

New Jersey's utility landscape is shaped by PSE&G (PSEG) and JCP&L (FirstEnergy), both of which are in active capital investment cycles that are driving rate case activity. PSE&G's "Clean Energy Future" program — a $4+ billion infrastructure investment — has been phased into commercial rates through multiple regulatory approvals. The New Jersey Board of Public Utilities (BPU) has approved rate increases that add infrastructure surcharges to commercial delivery bills, with the most recent approvals effective through 2025.

JCP&L's rate cases have been similarly consequential for commercial customers in northern and central New Jersey. A 2024 rate case settlement added approximately 8% to JCP&L's delivery rates for commercial accounts — affecting businesses from Morristown to Toms River.

How Much Will the New Utility Rate Approvals Cost You? Breaking Down the Numbers State by State

Understanding the magnitude of these rate hikes requires translating percentage increases into actual dollar amounts based on typical commercial consumption levels.

These figures represent the delivery component impact only — the portion of the rate increase you cannot negotiate away. The supply portion of your bill (which is often comparable in magnitude to the delivery component) is where competitive supplier switching can offset a significant portion of the total increase.

Why These Rate Hikes Are Not Going Away

The structural drivers of Northeastern utility rate increases — aging transmission infrastructure, capacity market premiums in ISO-New England, renewable energy mandates, and grid hardening requirements from climate resilience programs — are multi-year, multi-billion-dollar investment cycles. State utility commissions are legally required to allow utilities a regulated return on these investments. There is no near-term regulatory path to reversing these delivery charge increases. The only effective response for commercial customers is to minimize their total energy cost through competitive supply procurement and consumption reduction.

5 Proven Strategies to Protect Yourself From Rising Utility Rates Before Your Next Bill Arrives

The approved rate hikes are already in effect in most cases — but the impact on your specific account depends on how you buy your energy. Here are the five most effective actions you can take right now.

Strategy 1: Switch to a Competitive Energy Supplier Immediately

Massachusetts, Connecticut, and New Jersey are all deregulated states where commercial customers can choose their electricity (and in many cases, natural gas) supplier. The default utility "basic service" rate — the supply rate you pay if you haven't actively chosen a supplier — is updated periodically and often reflects wholesale price volatility unfavorably. Competitive retail electricity suppliers in these markets offer fixed-rate contracts that can be 8–20% below the utility's current basic service rate, depending on the account size and market timing.

Switching suppliers takes 30–60 days and involves no service interruption — your wires, distribution infrastructure, and billing relationship with the utility remain unchanged. Only the supply portion of your bill moves to the competitive supplier's rate. Given the magnitude of the rate hikes discussed above, switching is the single fastest and most impactful action most businesses in these states can take.

Strategy 2: Lock In a Fixed Rate Before Further Increases

Even after the current rate hike cycle, forward market projections for New England and PJM (New Jersey) suggest additional upward pressure on wholesale electricity prices through 2026. Locking in a 24- or 36-month fixed supply rate from a competitive supplier now captures current pricing and insulates your business from both additional supply market increases and any future capacity market adjustments that could elevate basic service rates further.

Strategy 3: Conduct a Commercial Energy Audit

Since utility rate hikes are per-kilowatt-hour increases, every kWh you eliminate from your consumption reduces your exposure to the hike proportionally. A commercial energy audit identifies specific wasteful consumption patterns — HVAC scheduling inefficiencies, lighting upgrades, equipment retirement opportunities — and quantifies the savings available. In older commercial buildings common throughout Massachusetts, Connecticut, and New Jersey, audits routinely identify 10–20% consumption reduction opportunities. See our commercial energy audit guide for a full walkthrough.

Strategy 4: Apply for State Utility Efficiency Rebates

All three states offer robust commercial energy efficiency rebate programs administered by their respective utilities under state mandate. In Massachusetts, the Mass Save program offers significant rebates for HVAC upgrades, LED retrofits, and building envelope improvements. Connecticut's Energize CT program provides similar incentives. New Jersey's Clean Energy Program funds efficiency upgrades for commercial customers. These programs can pay for a significant portion of the efficiency improvements that will permanently reduce your kWh consumption — and therefore your exposure to rate hikes. Explore our guide to utility rebates and incentive programs for details.

Strategy 5: Review Your Demand Charge Profile

In all three states, commercial electricity bills include a demand charge component based on your peak consumption interval. Rate hikes often include increases to demand charge rates as well as energy charges. Reducing your peak demand through operational scheduling or battery storage provides a compounding benefit: lower demand charges under both the current and higher post-hike rate structure.

Switch to a Competitive Energy Supplier Today and Stop Overpaying on State-Approved Rate Hikes

The approved rate increases in Massachusetts, Connecticut, and New Jersey are a reminder that, in deregulated energy markets, passivity is expensive. Every business that remains on its utility's default basic service rate is implicitly choosing to pay whatever the utility and state commission set — including every approved rate hike. Choosing a competitive supplier breaks that passive dependency and puts you back in control of a significant portion of your energy cost.

What to Look for in a Competitive Supplier Quote

• All-in supply rate: Confirm the rate includes all supply-side components including capacity, transmission access charges, and renewable energy requirements (NEPOOL GIS in New England, GATS in PJM).
• Contract term options: 12, 24, and 36-month fixed terms should all be available. Choose the term that best matches your business's planning horizon and risk tolerance.
• Renewal notification: Ensure the contract includes clear advance notification of the renewal date — at least 60 days — so you can re-shop rather than auto-renewing at prevailing market rates.
• Supplier financial stability: In deregulated markets, supplier bankruptcies are a real risk. Verify your prospective supplier's license status with your state's utility regulatory authority.

Frequently Asked Questions

Why are utility rates going up in Massachusetts, Connecticut, and New Jersey?

Rate increases in these states are primarily driven by utility infrastructure investment programs (grid hardening, smart meter deployment, transmission upgrades), capacity market price increases in ISO-New England, renewable energy mandates, and regulatory cost recovery for past capital expenditures. These are structural, multi-year cost drivers — not temporary fluctuations.

Can I avoid a utility rate hike by switching suppliers?

You can offset a significant portion of a rate hike by switching to a competitive supplier. The delivery charge component of a rate hike (infrastructure recovery) cannot be avoided — it's the same for all customers regardless of supplier. However, by locking in a competitive supply rate below the utility's basic service rate, you can compensate for the delivery increase and often reduce your total bill below its pre-hike level.

Is my business eligible to choose a competitive energy supplier in these states?

Yes. Massachusetts, Connecticut, and New Jersey are all deregulated electricity markets where commercial businesses of all sizes can choose their retail electricity supplier. Commercial natural gas customers in these states also have supplier choice options. Contact Jaken Energy for a free rate comparison.

How quickly can I switch suppliers after receiving a rate hike notice?

The switching process typically takes 30–60 days from contract signing to the first billing cycle on the new supplier's rate. To avoid paying an additional month of inflated rates, begin the process immediately upon receiving a rate hike notice.

Will switching suppliers affect my power reliability or service?

No. When you switch electricity suppliers in a deregulated state, the physical delivery of electricity (through the utility's wires and distribution infrastructure) remains exactly the same. Your reliability and service quality are entirely unaffected. Only the supply charge on your bill changes.

What is the "basic service rate" on my utility bill?

The basic service rate (also called "default service" or "standard offer service") is the supply rate your utility charges customers who haven't chosen a competitive supplier. It is set periodically by the state utility commission and reflects wholesale market conditions and utility procurement costs. It is almost always possible to beat this rate by switching to a competitive supplier.

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