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Eversource Energy CEO Joe Nolan recently declared that his company is "resisting data centers," stating they are of "no value to our residential customer — actually, any customer" and will "only drive up the price of energy," according to Utility Dive.

TL;DR: Eversource's resistance to data centers reflects concerns about grid strain and cost allocation, but residential customers across Massachusetts, New Hampshire, and Connecticut should expect potential rate pressures regardless. Now is an optimal time to compare competitive electricity rates and lock in fixed-rate plans before potential increases.

Last updated: 2026-05-09

How Data Centers Impact Your Electricity Bill

Data centers create massive electricity demand that can strain regional grids and drive up wholesale power costs. When large industrial users like data centers connect to the grid, they increase overall demand during peak periods, which forces grid operators to activate more expensive backup power plants.

This increased demand translates directly to higher costs for all electricity customers in the region. In ISO New England, where Eversource operates, wholesale electricity prices are set by the most expensive power plant needed to meet total demand. When data centers add significant load, utilities often need to run costlier "peaker" plants more frequently.

The ISO New England grid operator has already flagged capacity concerns across the region, particularly during summer peak demand periods. Adding large data center loads without corresponding infrastructure upgrades could exacerbate these constraints.

Current Electricity Rates in Eversource Territory

Eversource customers in Massachusetts currently pay a default service rate of 15.629 cents per kWh as of February 2026, according to Massachusetts DPU data. In New Hampshire, Eversource's default service rate is 11.303 cents per kWh as of May 2026.

These rates change periodically based on wholesale market conditions and procurement auctions. If data center development increases regional demand as Nolan predicts, future rate adjustments could trend higher when utilities conduct their next procurement cycles.

Competitive suppliers in both states currently offer fixed-rate plans that can provide protection against future rate increases. Many competitive plans are priced 10-15% below current default service rates, giving customers immediate savings plus rate certainty.

The key advantage of switching to a competitive supplier now is locking in current market rates before potential data center-driven increases take effect. Fixed-rate contracts typically range from 12 to 36 months, providing budget certainty during a period of potential grid expansion costs.

Why Eversource Opposes Data Center Development

Eversource's resistance stems from legitimate infrastructure and cost concerns. Data centers typically require 24/7 power supply with minimal interruption tolerance, creating both capacity and reliability challenges for utility operators.

Unlike residential or commercial customers with predictable usage patterns, data centers create constant high-demand load that doesn't fluctuate with weather or time of day. This "baseload" demand forces utilities to maintain additional generation capacity and transmission infrastructure.

The utility also faces cost recovery challenges. While data centers pay for electricity consumption, the infrastructure upgrades needed to serve them are often socialized across all customers through rate base additions. This means residential customers effectively subsidize the grid improvements that enable data center operations.

Eversource operates in some of the most capacity-constrained areas of New England, particularly around Boston and southern New Hampshire. Adding significant data center load in these areas would require substantial transmission upgrades that could cost hundreds of millions of dollars.

Regional Grid Implications Across New England

The data center debate extends beyond Eversource territory to affect the entire ISO New England region. Maine, Rhode Island, and other New England states share the same wholesale electricity market, meaning demand increases in one area can impact prices regionwide.

Central Maine Power customers currently pay 12.721 cents per kWh for standard offer service, while Rhode Island Energy customers pay rates that fluctuate based on regional market conditions. All these rates could face upward pressure if significant data center development proceeds without corresponding supply additions.

The New England grid operator has already identified the need for approximately 3,000 MW of additional capacity by 2030 to maintain reliability standards. Large data center developments could accelerate this timeline and increase the associated costs.

New Hampshire regulators at the NH PUC have been particularly focused on balancing economic development with rate impacts, as the state seeks to attract business while protecting residential customers from excessive cost increases.

When to Lock in Competitive Electricity Rates

Current market conditions favor consumers who want to secure fixed electricity rates before potential increases. Spring represents a seasonal low point for wholesale electricity prices, as mild weather reduces demand for both heating and cooling.

Competitive suppliers typically offer their most attractive fixed-rate plans during shoulder seasons like May, when they can purchase wholesale power at lower costs. This creates an opportunity window for consumers to lock in favorable rates before summer demand increases or data center-related capacity constraints take effect.

The timing advantage is particularly relevant for customers whose current contracts are expiring. Rather than rolling onto potentially higher default service rates or expensive month-to-month plans, switching to a competitive fixed-rate plan provides cost certainty.

Gatby has 4.8/5 stars from 500+ independent reviews and helps customers automatically find and switch to optimal electricity plans across New England.

What This Means for Different Customer Types

Residential customers face the most direct impact from Eversource's data center concerns. Unlike commercial or industrial customers who can negotiate custom rates, residential customers typically pay standard tariff rates that reflect all grid costs including infrastructure upgrades.

Small business customers in Eversource territory should also consider the implications for their energy costs. Commercial electricity rates often include demand charges that could increase if grid capacity becomes more constrained.

Customers with electric heating or electric vehicle charging face particular exposure to rate increases, as their higher electricity usage amplifies any per-kWh rate changes. These customers may benefit most from locking in competitive fixed rates now.

Municipal aggregation programs in Massachusetts communities like Cambridge and Somerville could also face higher costs when they renew their group purchasing contracts. These programs typically provide modest savings over default service, but their effectiveness diminishes if underlying wholesale costs increase significantly.

How to Protect Yourself from Rate Increases

The most effective protection against potential data center-driven rate increases is securing a competitive fixed-rate electricity plan before market conditions change. Comparing plans on Gatby is always free and takes just a few minutes.

Start by reviewing your current electricity bill to understand whether you're on default service or already have a competitive supplier. If you're on default service, you're exposed to rate changes every six months when utilities adjust their procurement-based rates.

Consider your household's electricity usage patterns when evaluating plan options. High-usage households typically benefit more from lower per-kWh rates, while low-usage households should focus on plans with minimal monthly fees.

Don't wait for rate increases to take effect before taking action. Once wholesale costs rise due to increased demand or infrastructure constraints, competitive suppliers adjust their offer prices accordingly. The current market window provides access to rates that may not be available if Nolan's predictions about data center impacts prove accurate.

You can compare electricity plans for your area on Gatby to see current competitive options and lock in rates before potential increases take effect.

Regulatory Response and Consumer Protections

State regulators across New England maintain oversight of utility rate-setting processes to ensure costs are justified and fairly allocated. The Massachusetts DPU requires utilities to demonstrate that infrastructure investments provide net benefits to customers before approving cost recovery.

Consumer protection rules also limit how quickly utilities can implement rate changes. Most states require advance notice and public comment periods before significant rate adjustments take effect, giving customers time to explore alternatives.

However, these protections don't prevent rate increases that result from legitimate grid costs or wholesale market changes. If data centers do drive up regional electricity demand as Eversource predicts, regulators may have limited ability to shield customers from the associated costs.

The best consumer protection remains the ability to choose competitive electricity suppliers in deregulated markets. This choice allows customers to lock in rates and avoid exposure to utility rate volatility, regardless of the underlying cause.

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 2026-05-09

Frequently Asked Questions

How will Eversource data center resistance affect my electric bill rates?

Eversource's resistance to data centers reflects concerns about increased electricity demand and infrastructure costs that could drive up rates for all customers. Even if Eversource successfully limits data center development in its territory, regional grid constraints and wholesale market dynamics could still create upward pressure on electricity rates. The ISO New England grid operates as an interconnected system, so demand increases anywhere in the region can affect wholesale prices that ultimately impact customer bills. Your best protection is locking in a competitive fixed-rate plan now, before potential market changes take effect. Current competitive rates in Massachusetts average 10-15% below Eversource's default service rate of 15.629 cents per kWh.

Should I switch electricity suppliers before Eversource raises rates in Massachusetts?

Yes, switching to a competitive supplier now can protect you from potential rate increases while providing immediate savings. Eversource's default service rate of 15.629 cents per kWh changes every six months based on wholesale market procurement, making you vulnerable to increases. Many competitive suppliers currently offer fixed-rate plans 10-15% below this default rate, with contract terms of 12-36 months that lock in your rate regardless of market changes. Spring is an optimal time to switch, as wholesale electricity costs are typically at seasonal lows, allowing suppliers to offer their most attractive rates. The switching process takes about one billing cycle to complete, and your electricity delivery remains unchanged through Eversource's infrastructure.

What are cheapest electricity rates in New Hampshire after Eversource news?

New Hampshire customers currently benefit from Eversource's default service rate of 11.303 cents per kWh, which is lower than Massachusetts rates. However, competitive suppliers in New Hampshire offer fixed-rate plans that can provide additional savings and protection against future increases. The cheapest rates typically come from 24-36 month fixed-rate contracts that average 8-12% below default service. Liberty Utilities customers pay 13.735 cents per kWh for default service, creating even more opportunity for competitive savings. Unitil customers have a default rate of 12.061 cents per kWh. The NH PUC maintains consumer protections for switching, including a cooling-off period and clear contract disclosure requirements. Compare current competitive rates to find the best option for your usage patterns.

How to lock in low electricity rates in Maine before increases?

Maine customers can secure competitive electricity rates through the state's deregulated market, though fewer suppliers operate there compared to Massachusetts or New Hampshire. Central Maine Power's standard offer rate is currently 12.721 cents per kWh, while Versant Power customers pay 12.954 cents per kWh. Competitive suppliers like Constellation and NextEra Energy offer fixed-rate plans that can provide savings and rate certainty. The key is acting during shoulder seasons like spring when wholesale costs are lower, allowing suppliers to offer more attractive rates. Maine's MPUC requires clear contract terms and provides consumer protections for switching. Look for plans with minimal monthly fees and consider your seasonal usage patterns, especially if you use electricity for heating during Maine's cold winters.

Am I eligible for fixed rate electricity plans in Rhode Island?

Yes, all Rhode Island residential customers can choose competitive electricity suppliers and lock in fixed rates. Rhode Island Energy (formerly National Grid) serves as the distribution utility while you select your electricity supplier. The state's deregulated market allows you to choose from multiple competitive suppliers offering fixed-rate plans with various contract terms. Eligibility is automatic for all residential customers, regardless of usage level or credit history, though some suppliers may require deposits for customers with poor payment history. The RI PUC oversees the market and ensures consumer protections including contract disclosure requirements and switching rights. Fixed-rate plans typically offer 6-36 month terms and can provide both immediate savings and protection against seasonal rate volatility that affects Rhode Island Energy's standard offer rates.