Northfield Electric to seek first rate increase in more than a decade; board warned of rising costs
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Summary
Town staff told the Select Board Northfield Electric will apply for a rate increase, potentially up to 14%, to the state authority; rising transmission and regional market costs were cited as drivers and the process may take several months.
The manager told the Select Board that Northfield Electric plans to seek its first rate increase in more than a decade, with a requested adjustment the manager said was "14% I think it was." He said higher transmission costs, regional market charges from ISO‑New England and renewable energy requirements are driving the need for higher rates.
The utility commission and town discussions concluded that the municipal electric utility's finances "remain very healthy" because of reserves and capital planning, the manager said, but that smaller municipal utilities in the region are struggling and several have enacted recent increases. He told the board that the regulatory process with the Public Utility Commission could take "4 or 5 months." Board members agreed it would be wise to notify large commercial users in advance.
Why it matters: A rate increase at Northfield Electric would affect local electric customers and could be felt sharply by large users; the PUC approves final rates after review.
Background: Town staff reviewed drivers for the change: transmission cost increases, broader ISO‑NE market costs and renewable energy mandates. The manager said municipal reserves and capital planning remain strong, but acknowledged the need to proceed through the regulatory process.
Next steps: The utility will file with the state Public Utility Commission and continue internal stakeholder communications; the board asked staff to inform major electric consumers about the potential increase.