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Major New England utilities including Eversource and Avangrid are asking federal regulators for an 11.39% return on equity (ROE), significantly higher than the 9.57% rate FERC set just weeks ago, according to Utility Dive. The utilities cite "current risk conditions" including geopolitical tensions and supply chain constraints as justification for the increased returns.

Last updated: 2026-05-01

TL;DR: New England utilities want higher profits on transmission investments, which could increase the delivery portion of your electricity bill. While you can't control transmission costs, you can still save on the supply portion by choosing competitive rates instead of staying on default utility service.

What This Means for Your Electricity Bill

The utilities' request for higher returns directly affects transmission costs, which appear as delivery charges on your electricity bill. When FERC approves higher ROE rates, utilities can collect more revenue from customers to cover their transmission infrastructure investments.

Your monthly electricity bill has two main components: delivery charges (regulated by utilities) and supply charges (competitive in deregulated markets). While this ROE increase would only affect the delivery portion, transmission costs typically represent 15-25% of your total bill in New England states.

The 1.82 percentage point difference between what utilities want (11.39%) and what FERC recently approved (9.57%) could translate to millions in additional costs spread across ratepayers in Maine, New Hampshire, Massachusetts, and Rhode Island.

Why Utilities Are Seeking Higher Returns Now

Eversource, Avangrid, and other transmission owners argue that current market conditions justify higher compensation for their infrastructure investments. They point to several factors driving increased risk and capital costs.

Supply chain disruptions have made transmission equipment more expensive and harder to obtain. Geopolitical tensions, including conflicts in Iran, have created uncertainty in global commodity markets that affect utility construction costs.

The utilities also face pressure to rapidly expand transmission capacity to accommodate offshore wind projects and other renewable energy sources mandated by state clean energy policies. These large-scale infrastructure projects require significant upfront capital investment.

According to ISO New England, the region needs substantial transmission upgrades to maintain grid reliability as more renewable resources come online and older fossil fuel plants retire.

How ROE Decisions Affect Transmission Rates

FERC sets ROE rates to balance two competing interests: keeping costs reasonable for consumers while ensuring utilities can attract capital for necessary infrastructure investments. When utilities argue for higher returns, they're essentially asking permission to charge customers more for using the transmission system.

The ROE directly multiplies against the utilities' rate base - the total value of transmission assets they've invested in. A higher ROE means higher annual revenue requirements, which get passed through to customers via transmission charges on monthly bills.

New England's transmission system is particularly expensive because of the region's challenging geography, dense population, and need to import significant amounts of electricity from neighboring regions. The Massachusetts Department of Public Utilities and other state regulators monitor these costs but have limited ability to challenge FERC's ROE decisions.

Current Default Service Rates in New England

While you can't control transmission costs, you can still manage your electricity supply costs by choosing competitive suppliers instead of default utility service. Here are current default service rates across New England:

Massachusetts:

• Eversource: 15.629 cents per kWh
• National Grid: 15.372 cents per kWh
• Unitil: 16.247 cents per kWh

Maine:

• Central Maine Power: 12.721 cents per kWh
• Versant Power: 12.954 cents per kWh

New Hampshire:

• Eversource: 11.303 cents per kWh
• Liberty Utilities: 13.735 cents per kWh
• Unitil: 12.061 cents per kWh

Rhode Island:

• Rhode Island Energy: Contact utility for current rate

These default service rates change periodically based on wholesale market conditions and utility procurement auctions. Competitive suppliers often offer rates below these benchmarks, especially during shoulder seasons like the current period.

What You Can Do to Manage Rising Energy Costs

Since transmission costs are beyond your control, focus on the supply portion of your bill where you have choices in deregulated markets. Most New England states allow you to choose your electricity supplier, potentially saving 10-15% compared to default utility rates.

Spring is typically an ideal time to lock in competitive electricity rates. Wholesale prices tend to be lower during mild weather months, and suppliers often offer their best deals before summer demand peaks.

Review your current electricity plan to see if you're paying default service rates or have a competitive supplier. If you're on default service, you're likely paying more than necessary for electricity supply.

The Maine Public Utilities Commission, New Hampshire PUC, and other state regulators provide consumer protection resources to help you understand your options and avoid predatory suppliers.

Consider automated energy management platforms that continuously monitor rates and switch you to better plans when available. Comparing plans on Gatby is always free, and the platform can help optimize both your electricity and natural gas supply costs.

Timeline for FERC's ROE Decision

FERC typically takes several months to review ROE complaints and requests. The utilities filed their request in early 2026, so a decision likely won't come until late 2026 or early 2027.

If FERC approves a higher ROE, the increase would apply retroactively to when the complaint was filed. This means customers could see both ongoing higher transmission charges and a one-time adjustment for the retroactive period.

Utilities must justify their ROE requests with detailed financial analysis and expert testimony. Consumer advocates and state regulators often intervene in these proceedings to argue for lower rates.

The outcome will affect not just current transmission costs, but also utilities' incentives for future infrastructure investments throughout New England.

Regional Grid Modernization Costs

New England faces unique transmission challenges that drive up infrastructure costs. The region must integrate large amounts of offshore wind power while maintaining reliability as nuclear and coal plants retire.

ISO New England's latest transmission planning studies show billions of dollars in needed upgrades over the next decade. Higher ROE rates would increase the cost of financing these projects, ultimately paid by electricity consumers.

The utilities argue that without adequate returns, they'll struggle to attract capital for these critical investments. However, consumer advocates worry that excessive ROE rates lead to unnecessary costs passed on to ratepayers.

State clean energy mandates in Massachusetts, Maine, and other New England states are accelerating the need for transmission upgrades, creating additional pressure for infrastructure spending.

How This Compares to Other Regions

New England's transmission costs are already among the highest in the nation due to the region's island-like electrical system and challenging geography. The requested 11.39% ROE would be above the national average for transmission utilities.

Other regions like Texas () and the Mid-Atlantic (PJM) have different market structures that can lead to lower transmission costs per customer. However, New England's reliability standards and environmental goals require substantial infrastructure investments.

The Energy Information Administration tracks regional electricity cost differences, showing New England consistently above national averages for both transmission and total electricity costs.

Protecting Yourself from Rising Utility Costs

While transmission charges are unavoidable, you can take several steps to minimize your overall electricity costs. Start by understanding your bill structure and identifying which charges you can control.

Energy efficiency improvements reduce your total electricity usage, lowering both supply and delivery charges. Simple steps like LED lighting, programmable thermostats, and proper insulation can cut consumption significantly.

For the supply portion of your bill, avoid variable-rate plans that can spike unexpectedly. Fixed-rate competitive plans provide budget certainty and often cost less than default utility service.

Gatby has 4.8/5 stars from 500+ independent reviews for helping New England customers find better electricity rates automatically. The platform monitors your account and switches you to better plans when available, ensuring you don't get stuck on expensive default service rates.

If you're considering solar panels or other distributed energy resources, factor in how transmission cost increases might affect the economics of your investment over time.

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 2026-05-01

Frequently Asked Questions

How much could my electricity bill increase if FERC approves the higher ROE?

The exact impact depends on your utility and electricity usage, but transmission costs typically represent 15-25% of your total bill. A 1.82 percentage point ROE increase could raise transmission charges by 10-20%, translating to $5-15 per month for average residential customers. The increase would be spread across all customers in each utility's service territory, with higher-usage customers paying proportionally more.

When would higher transmission charges take effect on my bill?

If FERC approves the utilities' request, the higher ROE would apply retroactively to when the complaint was filed in early 2026. You could see both ongoing higher transmission charges and a one-time adjustment covering the retroactive period. FERC decisions typically take 6-12 months, so changes would likely appear on bills in late 2026 or early 2027, depending on when your utility implements new rates.

Can I avoid transmission cost increases by switching electricity suppliers?

No, transmission charges appear on all electricity bills regardless of your supplier choice because they cover the regulated monopoly infrastructure that delivers power to your home. However, you can offset transmission cost increases by choosing competitive electricity suppliers that offer rates below your utility's default service. In deregulated New England markets, competitive supply rates are often 10-15% lower than default utility rates.

Why are New England transmission costs higher than other regions?

New England's transmission system is expensive due to several factors: the region's island-like electrical grid requires more redundancy, dense population increases construction costs, challenging geography makes building transmission lines difficult, and aggressive clean energy mandates require rapid infrastructure upgrades. The region also imports significant electricity from neighboring areas, requiring robust interconnection facilities that add to transmission costs.

How can I track transmission cost changes on my electricity bill?

Transmission charges appear in the delivery section of your electricity bill, often labeled as "transmission" or abbreviated as "TRANS." The exact line item varies by utility, but it's always separate from supply/generation charges. You can compare month-to-month transmission costs per kWh to track changes, though seasonal variations in usage can affect total transmission charges even if rates stay constant.

What role do state regulators play in transmission cost decisions?

State utility commissions like the Massachusetts DPU and Rhode Island PUC monitor transmission costs and can intervene in FERC proceedings to advocate for consumers. However, FERC has primary jurisdiction over interstate transmission rates, limiting state regulators' direct control. State regulators focus more on distribution costs and ensuring utilities prudently manage transmission investments that affect ratepayers in their states.

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