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ISO New England has announced significant progress on a new transmission line project, with the System Operations Readiness team working to bring critical grid infrastructure from concept to reality across the region.

TL;DR: New transmission infrastructure in New England may initially increase delivery charges on your electricity bill to fund construction, but could improve grid reliability and potentially lower electricity costs long-term by reducing congestion and improving power flow efficiency.

Last updated: 2026-04-06

How New Transmission Lines Affect Your Electricity Bill

New transmission infrastructure impacts your electricity costs in two distinct ways. First, transmission construction costs are typically recovered through increased delivery charges that appear on every customer's bill, regardless of which electricity supplier you choose. These charges are regulated by state utility commissions and spread across all customers in the affected service areas.

Second, improved transmission capacity can reduce wholesale electricity prices by eliminating bottlenecks that force expensive power plants to run when cheaper generation is available elsewhere. This wholesale price reduction benefits customers through lower competitive supplier rates over time.

The Massachusetts Department of Public Utilities, New Hampshire PUC, Maine PUC, and Rhode Island PUC each review and approve transmission cost recovery in their respective states.

Which New England States Will See Rate Changes

All ISO-NE states — Massachusetts, Rhode Island, New Hampshire, and Maine — share transmission costs through the regional grid operator's cost allocation methodology. However, the impact varies significantly by location and utility territory.

Massachusetts customers served by Eversource and National Grid typically see the largest absolute dollar impact due to high electricity usage and dense urban load centers. Current basic service rates in Massachusetts range from 13.68¢ per kWh (Western Massachusetts Eversource territory) to 16.25¢ per kWh (Unitil territory), making transmission cost increases more noticeable on monthly bills.

New Hampshire customers face similar impacts, with Eversource NH charging 11.30¢ per kWh for basic service, Liberty Utilities at 13.74¢ per kWh, and Unitil at 12.06¢ per kWh for standard offer service. Maine customers see transmission costs allocated across Central Maine Power (12.72¢ per kWh standard offer) and Versant Power (12.95¢ per kWh) territories.

Rhode Island Energy customers pay 14.77¢ per kWh for last resort service, with transmission upgrades potentially affecting the entire state given its single-utility structure.

Should You Lock in a Fixed Rate Before Transmission Costs Hit

Locking in a competitive fixed-rate plan before transmission cost increases take effect can provide budget certainty for your supply charges, but transmission costs appear in the delivery section of your bill regardless of your supplier choice. This means a fixed-rate plan protects you from supply price volatility but not from regulated transmission cost recovery.

Current market conditions favor fixed-rate plans during this shoulder season between peak demand periods. Competitive suppliers often offer rates 10-15% below utility default service rates when wholesale prices are stable, as they are now in early April 2026.

However, transmission cost increases typically phase in gradually over 12-24 months as construction milestones are reached. This gives you time to evaluate options without rushing into a long-term contract that may not align with your usage patterns.

The key consideration is whether you expect wholesale electricity prices to rise faster than transmission cost recovery. If wholesale markets remain stable while transmission charges increase, competitive suppliers may absorb some of the impact to remain attractive relative to utility default service.

How Grid Reliability Improvements Could Lower Long-Term Costs

Enhanced transmission infrastructure reduces the need for expensive "reliability must-run" power plants that ISO-NE currently pays to operate during peak demand periods. These reliability payments, called Forward Capacity Market costs, are passed through to all electricity customers and can represent 20-30% of total wholesale electricity costs.

Improved power flow between regions also allows cheaper generation from areas with abundant renewable resources to serve load centers that currently rely on more expensive local generation. For example, enhanced transmission from Maine's wind resources to Massachusetts load centers could reduce the need for natural gas peaking plants during high-demand periods.

Grid modernization projects often include smart grid technologies that enable more efficient electricity delivery and reduce line losses. Even small reductions in transmission losses — typically 2-4% of total electricity delivered — translate to meaningful customer savings when spread across the entire New England system.

The ISO New England planning process evaluates these benefits against project costs, approving only transmission investments that provide net economic benefits to the region.

What This Means for Community Choice Aggregation Programs

Community Choice Aggregation (CCA) programs in Massachusetts cities and towns may need to adjust their electricity procurement strategies to account for changing transmission cost structures. These municipal programs aggregate customer load to negotiate better rates than individual customers could obtain, but transmission costs affect their economics just like individual competitive supply contracts.

CCA programs often lock in supply rates 12-24 months in advance through forward contracts. Transmission cost increases that occur during these contract periods can erode the savings these programs deliver to participating customers, potentially making individual competitive supply contracts more attractive.

Some CCA programs may respond by negotiating shorter-term supply contracts or including transmission cost adjustment mechanisms in their procurement agreements. Customers in CCA programs should monitor their municipal program's performance relative to both utility default service and individual competitive options available through platforms like Gatby.

Massachusetts communities with active CCA programs include Cambridge, Somerville, Arlington, and Brookline, among others. These programs must balance transmission cost impacts against their goal of delivering customer savings and often renewable energy benefits.

When to Switch Electricity Suppliers Around Infrastructure Changes

The optimal timing for switching electricity suppliers depends on your current contract status and risk tolerance for rate volatility. Customers currently on utility default service (basic service, standard offer, or last resort service) have maximum flexibility to switch to competitive suppliers without early termination fees.

If you're nearing the end of a fixed-rate contract, compare your renewal options against current utility default service rates and available competitive offers. Transmission cost increases affect both options equally, so focus on the supply rate differential and contract terms that match your preferences.

Spring 2026 represents favorable market conditions for competitive supply shopping, with wholesale electricity prices at seasonal lows and suppliers competing aggressively for new customers before summer demand increases. This seasonal pattern typically provides the best fixed-rate opportunities from April through May.

Customers with high electricity usage — typically 1,000+ kWh per month — see the most significant dollar impact from both competitive supply savings and transmission cost increases. These customers should prioritize usage-based plan comparisons rather than headline rate comparisons.

Comparing plans on Gatby is always free and provides personalized recommendations based on your actual usage patterns and local utility territory.

How to Compare Plans with Changing Transmission Costs

Effective plan comparison during periods of infrastructure investment requires understanding both supply and delivery cost components. Your electricity bill separates these charges, with supply costs varying by your chosen provider and delivery costs set by your local utility and state regulators.

Focus your comparison shopping on supply rates and contract terms, since transmission costs will appear on your bill regardless of which competitive supplier you choose. Look for suppliers offering rate protection or price caps that limit your exposure to wholesale market volatility during the transmission construction period.

Avoid plans with low introductory rates that increase significantly after 3-6 months, as these rate escalations often coincide with seasonal demand increases and could compound transmission cost impacts. Variable-rate plans provide flexibility but expose you to both wholesale price volatility and potential supplier margin adjustments.

Gatby's Autopilot platform continuously monitors your electricity plan performance and automatically switches you to better options when they become available, ensuring you maintain competitive rates throughout transmission infrastructure changes.

Consider the total estimated monthly cost impact rather than focusing solely on per-kWh rates. A plan that costs $0.005 per kWh more but includes rate stability features may provide better value during periods of infrastructure investment and cost recovery.

Gatby has 4.8/5 stars from 500+ independent reviews from customers who appreciate automated plan management during changing market conditions.

State-by-State Transmission Cost Recovery Differences

Each New England state uses different mechanisms to recover transmission costs from customers, creating variations in how and when infrastructure investments affect your electricity bill. Understanding your state's approach helps you anticipate timing and magnitude of cost changes.

Massachusetts uses a reconciling mechanism that adjusts transmission charges quarterly based on actual costs incurred. This means transmission cost increases can appear on bills relatively quickly after construction expenses are approved by FERC and allocated by ISO-NE.

New Hampshire employs an annual rate case process where transmission cost recovery is evaluated and adjusted once per year, typically effective each January. This provides more predictable timing but can result in larger step increases when adjustments occur.

Maine and Rhode Island use hybrid approaches that combine quarterly adjustments for major cost changes with annual true-ups to reconcile actual costs against customer collections. This balances timely cost recovery with rate stability considerations.

The Maine Public Utilities Commission, New Hampshire PUC, Massachusetts DPU, and Rhode Island PUC each provide public notice before implementing transmission cost adjustments, typically through formal rate case proceedings or tariff filings.

Written by Hash Manesia, Energy Market Analyst at Gatby. Hash Manesia covers deregulated electricity markets across Texas and the Northeast, helping consumers navigate plan selection, rate comparison, and energy policy changes.

Reviewed by the Gatby Editorial Team on 2026-04-06

Frequently Asked Questions

Will new transmission line lower my electricity bill in Massachusetts?

New transmission infrastructure will likely increase your electricity bill initially through higher delivery charges that fund construction costs. However, improved grid efficiency and reduced congestion could lower wholesale electricity prices over 3-5 years, benefiting customers through competitive supplier rate reductions. Massachusetts customers currently pay 13.68¢-16.25¢ per kWh for basic service depending on utility territory. Transmission cost recovery typically adds $2-5 per month for average residential customers during construction periods, but long-term benefits may offset these costs through improved market competition and grid reliability that reduces expensive emergency generation needs.

How do I switch electricity suppliers before transmission costs increase?

Contact a competitive electricity supplier directly or use a broker platform to compare available rates in your utility territory. You'll need to provide your account number and authorize the switch through a Letter of Authorization process. The switch typically takes effect on your next meter read date, usually within 2-4 weeks. Since transmission costs appear in delivery charges regardless of your supplier choice, focus on finding competitive supply rates that provide savings relative to your utility's basic service rate. Avoid plans with low introductory rates that increase significantly after a few months, as these escalations could compound transmission cost impacts on your total bill.

Which New England states qualify for transmission line savings programs?

All ISO-NE states — Massachusetts, Rhode Island, New Hampshire, and Maine — participate in regional transmission cost allocation and benefit from grid reliability improvements. However, there are no specific "savings programs" for transmission costs. Instead, all customers in the region share construction costs through delivery charge increases and benefit from improved grid efficiency through potentially lower wholesale electricity prices. Some states offer low-income assistance programs that help offset total electricity costs, including transmission charges. Contact your state's public utilities commission or local community action agency for information about available assistance programs that could help manage electricity costs during infrastructure investment periods.

Should I lock in fixed rate plan before new transmission fees?

Fixed-rate electricity plans protect you from supply price volatility but don't shield you from transmission cost increases, which appear in regulated delivery charges regardless of your supplier choice. However, locking in a competitive fixed rate during current favorable market conditions could provide overall bill savings that help offset transmission cost recovery. Spring 2026 offers good opportunities for fixed-rate plans with wholesale prices at seasonal lows. Consider plans with 12-24 month terms that provide rate certainty through the initial transmission cost recovery period. Avoid contracts with early termination fees exceeding $100 unless you're confident about staying with that supplier, as market conditions may change during infrastructure construction.

How to compare electricity rates with upcoming transmission line charges?

Focus your rate comparison on supply charges since transmission costs will appear on your bill regardless of which competitive supplier you choose. Compare the total estimated monthly cost including both supply and delivery components using your actual usage history from recent bills. Look for suppliers offering transparent pricing without hidden fees or rate escalations after introductory periods. Use your utility's current basic service rate as a benchmark — competitive plans should provide meaningful savings to justify switching. Consider rate stability features like price caps or fixed rates during periods of infrastructure investment. Online comparison tools can help evaluate multiple options simultaneously, but ensure they account for your specific utility territory and usage patterns rather than just headline rates.