Unitil, a provider of electricity and natural gas in New England, announced that its reduced electric distribution and transmission rates for residential heat pump customers will take effect on Nov. 1.
The Massachusetts Department of Public Utilities approved the new rate category in 2025. This rate offers heat pump customers a lower distribution and transmission charge compared to the standard residential rate for the winter months, spanning November through April when costs are often higher due to increased energy usage. This is the second full heating season Unitil customers will be able to take advantage of the reduced rate and the first season customers will see a reduction in the transmission charge in addition to the distribution charge.
Unitil was the first utility in Massachusetts to propose the lower distribution rate in alignment with the Commonwealth's goal of carbon-free heating. Heat pumps are efficient systems that use electricity to move heat from the outside air into a home.
"The reduced rate, combined with energy efficiency rebates for new installations, helps keep costs affordable for customers who choose to adopt this technology," said Unitil’s External Affairs Manager Amanda Vicinanzo. "We already have over 1300 customers taking advantage of the rate."
Households using heat pumps, either fully or partially, are eligible for the lower distribution and transmission rate. The remaining delivery charges and supply rate charge, which refers to the cost of the electricity itself, will remain unchanged.
"For customers enrolled on the heat pump rate, the reduction will apply to the entire monthly electric load, not just the portion used by the heat pump," Vicinanzo explained.
The anticipated savings are substantial. Homeowners who enroll will see a reduction of approximately 64% in their electric distribution charge and transmission charge, which is roughly a 34% reduction in the total charges for delivery service, during the winter heating season. During the last winter heating season, customers saved an estimated $375 through the reduced distribution rate compared to the standard residential rate.
Customers who received a heat pump rebate through Mass Save® have already been automatically enrolled in the program. All other customers who have a heat pump and would like to enroll in the program, are encouraged to sign up immediately to take full advantage of the discounted winter rate. For more information, visit unitil.com/ma-heat-pump-rate.
