Financial relief for skyrocketing energy bills this winter: Here are the details
It’s cold out there, and it’s been that way for a while.
If you’re scoring at home, since the first day of winter Dec. 21, the Worcester area has experienced 13 days of below-freezing temperatures. More subfreezing days are expected as a polar vortex – a common weather term this winter – will likely drop temperatures around 0 this weekend, with wind chills that will make it feel colder.
Extended periods of extreme cold translate into expensive energy bills, when some people are faced with the prospect of having to decide between paying the bills to keep warm or using their limited funds to cover other necessary expenses.
"Scared” is the word Tim Garvin, president and chief executive officer at the United Way of Central Massachusetts, used to describe those families huddled in freezing cold homes because they can't afford to pay their heating bill. But there is relief this winter for some of these families.
National Grid and the National Grid Foundation announced they would work with the United Way of Central Massachusetts and other nonprofits statewide to distribute $5 million over the next two years to help families pay for rising energy bills.
The $5 million doesn't come from the utility's ratepayers, said a National Grid spokesman. The sources include an infusion from National Grid's corporate entity, $2.5 million from the foundation's board of directors, and the foundation's endowment.
National Grid has hiked average monthly winter electric bills in Massachusetts by 27% over the past five years, as the bill for using 600 kilowatt hours monthly increased from $179.60 in 2021-22 to $227.50 in 2025-26, according to a company spokesman.
State regulations require the utility to adjust its electricity supply rates every six months to reflect seasonal prices for electricity. Roughly 70% of National Grid customers use competitive suppliers or municipal aggregation programs for their electricity supply needs, said a company spokesman. That means approximately 30% take basic service.
Information provided in September by John Odell, Worcester's chief sustainability officer, indicated 44,000 of the city's residential customers (52%) participate in Worcester's electricity aggregation program. Aggregation means the city buys electricity in bulk from a supplier. Worcester signed a two-year contract with Houston-based Direct Energy that runs from December 2025 to the end of November 2027.
Another 22,000 (26%) of Worcester’s residential customers get their electricity from third-party suppliers, and the rest (22%) are in National Grid’s basic service plan, according to Odell. He noted that January bills will reflect electricity usage in December, and residential customers in the city’s aggregation program will pay 15.32 cents per kilowatt hour, less than the 15.48 cents per kilowatt hour for customers in National Grid’s basic service plan.
The focus of National Grid’s $5 million relief effort is connecting seniors on fixed incomes and income-eligible families with energy-saving programs. Community organizations like Garvin’s will use their network of relationships to connect people with those programs.
One highlight of the effort includes up to $400 in emergency energy bill assistance for Massachusetts households that fall outside state aid eligibility.
There are several possible options including the Massachusetts Good Neighbor Energy Fund. To qualify, a household's gross yearly income must fall between 60% and 80% of the state’s median income level. For a family of four, that’s a yearly gross income between $99,574 and $132,764.
There’s also the possibility of tapping into a tiered discount on monthly bills ranging from 32% to 71%, depending on a home’s income and the number of people living there. In addition, some customers can pay a fixed monthly electricity bill to avoid what can be an astronomical hike in the peak winter and summer months, when electricity demand is the highest.
Heat pumps can also generate savings. Some homes with this technology could qualify for a reduced delivery rate on electricity from November through April between $70 and $141 monthly.
Garvin noted the National Grid Foundation came through just before Christmas with $250,000 that the United Way of Central Massachusetts will distribute to people having a hard time paying their winter energy bills including the elderly, military veterans, families with children and the disabled living on a fixed income.
Several community groups are receiving a portion of the $250,000, said Garvin, including the Worcester Community Action Council, Catholic Charities of Worcester County, Elder Services of Worcester, Project New Hope, Veterans Inc. and the Central Massachusetts Housing Alliance.
Another chunk of funds could be on the way, as Garvin’s organization has applied to National Grid for $500,000 yearly over the next two years to help struggling families mitigate high electricity bills. If the funds come through, Garvin said, his organization would split them with the United Way of Massachusetts Bay.
"Elements of life can be challenging, so we want to respond to this crisis and stabilize lives, so people have the opportunity to move ahead,” Garvin said.
By: Henry Schwan, Telegram & Gazette