Rates for Heat Pumps
Lessons from Maine and Massachusetts
Electrification must equal affordability.
Households on gas usually see higher energy bills after heat pumps.
energy bills
+11%
How bills would change for natural gas heated homes after switching to heat pumps
This is happening in state after state.
Cheap gas isn't the whole story...
High operating costs threaten to stall electrification.
The Problem
Utilities Are Overcharging
Heat Pumps
energy bills
2.8x2.2x
overpayment!$2,805
The Solution
Heat Pump Rates
How bills would change for natural gas heated homes after switching to heat pumps
HP Rates in MA & ME
Case Studies
Fixed
$
Charge
Fixed
$
Charge
"Customers saved a substantial amount during the heating season ($720) but also spent considerably more in the cooling season ($810)."
"Relative to what they would have paid on Rate A for the same amount of energy, customers on the SHP rate paid about $90 more during their first year on the SHP rate, on average."
"As of October 2024, there were approximately... 3,000 accounts enrolled on the SHP rate."
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bsky @switch.box
mail jpv@switch.box
peak hours here!
overpayment!grid upgradeswholesaleenergy costexistingtransmission &distributionmore coolingfrom peak usage
Energy burdens for LMI customers
The Lever
Utility Rate Cases
The Lever
How It Works
Identify proceedings
Partner with advocates
Analyze data
Write testimony
Propose rates
If we stop overcharging new heat pump customers, what's the impact on other customers?
Nothing.
If we stop overcharging existing heat pump customers?
In NY, the electric bills of other customers would
go up by $2 a month, on average.
NY households by heating technology
savings increase from $1.3K to $1.7K
"Utilities are overcharging heat pump customers by an average of $855 per year."
Stays the same!
Overcharging by $900 a year
HP rate = 14 ¢/kWh → 8 ¢ / kWh
Only of homes can save
20%
of homes can save
90%
136 utilities in cold areas + CA
70% of all residential customers
PUCs and utilities will start to offer HP rates voluntarily.
If 136 utilities offered HP rates,
$1.4 billion in yearly savings.
overpayment!grid upgradeswholesaleenergy costexistingtransmission &distributionmore coolingfrom peak usageHeat Pump Rates Deck (NEEP)
By Juan-Pablo Velez
