Skip to main content

Massachusetts (US-MA)

Market Type: Deregulated (Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: See emissions section

SSS Factors: significant nuclear capacity, hydroelectric resources

1. Overview​

Massachusetts operates a deregulated electricity market where residents can choose competitive suppliers while relying on local utilities (such as Eversource, National Grid, and Unitil) for power delivery 1. The state is part of the ISO New England (ISO-NE) regional grid and currently imports approximately twice as much electricity as it generates in-state 2.

Grid Composition and Emissions Natural gas is the primary fuel source, accounting for roughly two-thirds of the state's electricity generation 1. As of early 2026, the carbon intensity of the grid is approximately 392 gCO2eq/kWh 3. In 2024, renewable energy sources provided about 33% of the state's total in-state generation, with solar power contributing approximately 25% 2. Massachusetts is legally mandated to reduce emissions under the Global Warming Solutions Act, targeting Net Zero emissions by 2050 4.

Market Dynamics and Pricing The average residential electricity rate ranges from 26.01 to 31.22 cents per kWh, significantly higher than the national average. Seasonal volatility often leads to price spikes in winter months due to heating demand and natural gas constraints 5. The state has established aggressive clean energy mandates, including a requirement that 40% of electricity sales come from renewable sources by 2030 1. While the state is a leader in energy efficiency and solar capacity (over 3,900 MW), the deployment of offshore wind and transmission projects faces delays that may impact near-term decarbonization goals 4.

2. Market Structure​

Massachusetts features a mixed market structure comprising investor-owned, municipal, and cooperative entities, operating within a deregulated retail environment managed by a regional transmission organization.

Utility Ownership​

The state's electric utilities are categorized into three primary ownership structures:

  • Investor-Owned Utilities (IOUs): Private, for-profit corporations regulated by the Massachusetts Department of Public Utilities (DPU). Major providers include Eversource, National Grid, Unitil, and Liberty Utilities 4.
  • Municipal Light Plants (MLPs): Non-profit, public entities owned by local governments, serving 41 MLPs across all or part of 50 municipalities. These entities set their own rates and policies, independent of DPU regulation. Many participate in the Massachusetts Municipal Wholesale Electric Company (MMWEC) for joint power purchasing 6.
  • Cooperatives: While traditional customer-owned cooperatives are less common, the state features collaborative entities such as Energy New England (ENE) and the Mass Save program, which involves IOUs and energy efficiency service providers 4.

Grid Management and Wholesale Markets​

ISO New England (ISO-NE) serves as the independent system operator (ISO) and Regional Transmission Organization (RTO) for the state. Headquartered in Holyoke, ISO-NE manages the high-voltage grid and wholesale electricity markets across the six-state region. It performs three core roles:

  1. Grid Operation: Balancing supply and demand in real-time across ~9,000 miles of transmission lines 7.
  2. Market Administration: Operating competitive wholesale markets (Day-Ahead and Real-Time) 8.
  3. Power System Planning: Managing long-term infrastructure needs and the Interconnection Request Queue 8. ISO-NE does not own transmission assets but operates those owned by member utilities; it is regulated by the Federal Energy Regulatory Commission (FERC) 9.

Retail Choice and Regulation​

Massachusetts operates a deregulated electricity market, allowing customers in IOU territories to select a third-party competitive supplier for the "supply" portion of their bill while the utility maintains delivery ("Basic Service") 10. As of 2026, the market is undergoing significant shifts due to regulatory scrutiny:

  • Legislative Action: Governor Maura Healey and Attorney General Andrea Campbell have pushed to ban or limit third-party suppliers for residential customers, citing data showing residents often pay more than on Basic Service 11.
  • Enforcement: The DPU has recently issued fines for predatory marketing, including a $5 million fine against CleanChoice Energy in 2025 and a $100,000 fine against Direct Energy Services in 2026 11.
  • Municipal Aggregation: Over 199 communities utilize Community Choice Aggregation to purchase electricity in bulk on behalf of residents 12. Approximately 50 MLPs do not offer retail choice and remain fully regulated 10.

3. Clean Energy Policy​

Massachusetts mandates a rapid transition to clean energy to achieve net-zero greenhouse gas emissions by 2050, requiring at least an 85% reduction in gross emissions below 1990 levels 4. The state's electricity sector, currently the third-largest source of emissions (18%), serves as the backbone for decarbonizing transportation and heating 4.

Renewable Portfolio Standard (RPS) & Clean Energy Standard (CES)​

Retail electricity suppliers must comply with a statutory "MA Requirement" totaling 63.3% for 2025. This aggregate figure combines several distinct initiatives 13:

  • RPS Class I: Applies to new renewable facilities operational after December 31, 1997.
  • RPS Class II: Applies to existing facilities operational before 1998.
  • Clean Energy Standard (CES): Requires "clean" energy (including large-scale hydro), starting at 16% in 2018 and targeting 80% by 2050.
  • CES-E: A standard specifically for existing clean energy resources.

Suppliers meet obligations by purchasing Renewable Energy Certificates (RECs) via the NEPOOL GIS system. If RECs are unavailable, suppliers must pay an Alternative Compliance Payment (ACP) to the state, which acts as a price ceiling. Municipally-owned utilities are generally exempt from these mandates 4.

Legislative Updates and Strategic Targets​

The legal framework was significantly expanded by the "Act Promoting a Clean Energy Grid, Advancing Energy Equity, and Protecting Ratepayers" (S.2967), signed in November 2024 4. Key provisions include:

  • Permitting Reform: Consolidates permits into a single "master permit," with decision deadlines of 12 months for small projects (<25 MW) and 15 months for large projects (>25 MW) 4.
  • Energy Storage: Mandates the procurement of 5,000 MW of energy storage by July 31, 2030 4.
  • Definition Expansion: "Clean energy" now explicitly includes nuclear fission, fusion energy, and carbon removal technologies 4.
  • Infrastructure Goals: The state requires 5,600 MW of offshore wind by 2027 (up to 23 GW by 2050) and projects solar capacity to reach 8,360 MW by 2030 4.

Equity and Environmental Justice​

The 2024 legislation establishes strong equity measures, including:

  • Cumulative Impact Analysis: Large projects must evaluate impacts on communities burdened by industrial pollution 4.
  • Community Voice: Developers must hold public meetings prior to permit applications, and an Intervenor Trust Fund was created to assist communities with legal and expert representation 4.
  • Rate Protections: Utility providers are directed to offer lower rates to low- and moderate-income consumers 4.

⚠️ Uncertainties and Recent Developments​

Recent legislative actions suggest potential shifts in policy implementation:

  • 2030 Targets: As of late 2025, some proposals sought to make the 2030 emissions targets "advisory" rather than mandatory due to affordability concerns 4.
  • Clean Heat Standard: Implementation was delayed until after the 2026 election to address household heating cost concerns 4.
  • Federal Alignment: State leaders are exploring methods to maintain progress despite potential reductions in federal funding or approvals for offshore wind 4.

4. Utility Landscape​

Massachusetts' electricity delivery is dominated by three major investor-owned utilities (IOUs), which are private companies regulated by the Department of Public Utilities (DPU) 4. These primary electric IOUs serve the vast majority of the state's population and include:

  • Eversource Energy: The largest energy delivery company in New England, serving approximately 1.4 million electric customers in Massachusetts. It covers major urban centers including Boston, Cambridge, and Springfield, and operates through former entities such as NSTAR and Western Massachusetts Electric Company (WMECO) 414.
  • National Grid: The second-largest utility in the state, serving over 1.2 million electricity customers across 168 communities. Its service areas include Worcester, Lowell, Brockton, and Nantucket Island 14.
  • Unitil: A significantly smaller IOU serving roughly 102,500 electric customers in the state, with a focused presence in the Fitchburg area 14.

In addition to IOUs, Massachusetts has a significant public power sector consisting of over 40 locally owned, non-profit entities known as Municipal Light Plants (MLPs) 4. These 41 MLPs serve all or part of 50 municipalities and account for approximately 14% of the state's electricity use 4. Unlike IOUs, MLP rates are set by local officials rather than the DPU, and they typically handle both distribution (wires and poles) and electricity supply for their customers 4.

The sector is supported by key public power organizations, including the Massachusetts Municipal Wholesale Electric Company (MMWEC), a non-profit joint action agency that provides power supply planning and financial services, and the Municipal Electric Association of Massachusetts (MEAM), which offers advocacy services 15.

⚠️ Note: The search results reference customer data "as of early 2026," which appears to be a future date and may be a typo in the source material.

5. SSS-Eligible Resources​

ResourceTypeCapacity (MW)SSS EligibleNotes
Large Hydroelectric (aggregate)Hydro1,090✅ Yes (pre-RPS)Legacy hydro facilities

6. EAC/REC Registry Infrastructure​

Massachusetts utilizes an integrated, dual-system infrastructure to issue, track, and verify Energy Attribute Certificates (EACs), primarily referred to locally as Renewable Energy Certificates (RECs).

Primary Tracking Systems

  • NEPOOL Generation Information System (GIS): This regional system serves as the central registry for the New England Power Pool. It is responsible for "minting" (creating) RECs, tracking ownership, and managing transfers for compliance with the Massachusetts Renewable Portfolio Standard (RPS) 1617.
  • Massachusetts Production Tracking System (PTS): Managed by the Massachusetts Clean Energy Center (MassCEC), the PTS functions as the state's independent verifier. It collects production data from generators (such as solar facilities) and reports it to NEPOOL GIS to facilitate the issuance of certificates 174.

Regulatory and Administrative Roles

  • MA Department of Energy Resources (DOER): DOER acts as the regulatory body that qualifies energy generation units. System owners must submit a Statement of Qualification (SQA) to DOER before registering in the PTS 17.
  • Public Records: DOER serves as the custodian for PTS data, where public records requests can be directed 17.

Types of Certificates Tracked The infrastructure supports various credit types depending on the technology and program:

  • RECs (Class I & II): Standard certificates for renewable sources like wind, solar, and small hydro 17.
  • SRECs: Solar Renewable Energy Certificates specific to older solar incentive programs (SREC I and SREC II), which remain active for existing qualified systems 17.
  • AECs: Alternative Energy Certificates used for the Alternative Energy Portfolio Standard (APS), covering technologies like combined heat and power (CHP) and renewable thermal 174.
  • CPECs: Clean Peak Energy Certificates issued for resources providing clean energy during peak demand periods 4.

Operational Requirements

  • Dual Registration: Most systems must be registered in both NEPOOL GIS and the PTS to participate fully in Massachusetts clean energy markets 4.
  • Reporting Timeline: System owners typically must report production data to the PTS within a specific monthly window to remain compliant and receive certificates (5 days before to 5 days after the end of the month) 17.
  • Market Access: Individual system owners generally do not access NEPOOL GIS directly, relying instead on aggregators or installers to manage accounts and sell credits 4.

7. Grid Emissions​

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-10
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. Choose Energy ↩ ↩2 ↩3

  2. U.S. Energy Information Administration (EIA) (.gov) ↩ ↩2

  3. Query: Massachusetts grid carbon intensity ↩

  4. Mass.gov ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20 ↩21 ↩22 ↩23 ↩24 ↩25 ↩26 ↩27 ↩28

  5. PowerOutage.us ↩

  6. MAPC - Metropolitan Area Planning Council ↩

  7. Unitil ↩

  8. ISO New England ↩ ↩2

  9. Federal Energy Regulatory Commission (.gov) ↩

  10. Electric Choice ↩ ↩2

  11. CNET ↩ ↩2

  12. Partnership for Policy Integrity ↩

  13. Colonial Power Group ↩

  14. Mass Energy Rates ↩ ↩2 ↩3

  15. MMWEC ↩

  16. resource-solutions.org ↩

  17. MassCEC ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8