"Global Natural Gas Boom Drives Down Electric Rates Worldwide"
Eversource and Unitil have requested to lower their energy supply rates, which would save customers about 15% and 10% respectively, due to the low prices of natural gas. The reduction in rates is a result of the low cost of methane, used in power plants that provide half of New England's electricity, due to record production in the US and economic issues. However, there is no guarantee that rates won't increase again in the future. The energy supply charge is based on the price utilities pay to buy electricity on the open market, making cheaper fuel result in cheaper bills. The rates are set twice a year and cannot be adjusted based on market fluctuations. The decline in supply rates only affects half of residential electric bills, while the distribution charge covers the costs of maintaining the power grid and has been growing in recent years. The transition to a more sustainable grid will require redesign and building, leading to debates on how to allocate the costs on electric bills.