Understanding Your Residential Electric Bill
Breakdown of the Monthly Rates
To make electricity costs as transparent as possible, electric bills in Concord contain line items that show the component costs of bringing power to local homes and businesses. The process called "unbundling" provides a clear view of the factors that go into your bill.
The line items show charges related to wholesale power costs along with costs to operate our Town-owned electric system. For more information about our rates, view the https://concordma.gov/528/Rates.
Below are the items you will see on your bill:
Meter Charge: The cost of billing, customer service, and administration to service your account whether you use energy or not.
Energy Charge: The cost of buying energy from suppliers; the cost to have a generator produce a kWh for anyone in Concord.
Capacity and Transmission Charge: The cost associated with the availability and reliability of generators and wires on the New England Grid.
Distribution Charge: The cost to bring energy to your home over Concord's wires after it has traveled on the New England grid.
Other line items on your bill include:
Rate Stabilization Fund: All residential and business customers are subject to this charge or credit. This fund is used to offset anticipated significant wholesale rate increases. Funds are collected from all customers over a period, and then paid back to customers to avoid a steep increase. Effective November 2020, the previous Rate Stabilization charge ended.
New York Power Authority Credit: This credit is based upon savings realized by purchasing hydroelectric power from the New York Power Authority. Under Federal Law, this savings is passed only to residential customers. Note: The power consumed by residential customers is more than 20% green about half of which is purchased from the New York Power Authority.
Power Cost Adjustment (PCA): Concord Municipal Light Plant (CMLP) buys its electricity from generating sources such as natural gas, land fill gas, solar, and hydro. Costs associated with each source can fluctuate dramatically. The PCA is used when needed to adjust for increases or decreases in wholesale power and transmission costs (representing about 80% of CMLP costs) and to ensure costs are revenue neutral to CMLP. As of January 2022, a temporary power cost adjustment was added to address expected high energy costs this winter @ 0.009.
Underground Surcharge: The Underground Surcharge is a 1.5% fee used to help offset the cost of placing existing overhead wires underground. Under-grounding all utilities in Concord is a Town bylaw.
Residential Service Rate
Here is a breakdown example of the monthly Residential Service charges (effective January 1, 2022) on your electric bill:
Service Charge (Meter Charge)
- $16.80 per month
- $0.07665 per kWh
Capacity and Transmission Charge
- Tier 1 - first 657 kWhs @ $0.0.03308 per kWh
- Tier 2 - next 178 kWhs @ $0.04302 per kWh
- Tier 3 – in excess of 835 kWhs @ $0.06208 per kWh
- $0.05158 per kWh