SELCO is committed to providing reliable, affordable electricity to Shrewsbury’s residents and businesses. As a not-for-profit, community-owned electric utility, the electric rates we charge our customers reflect the actual cost of providing electric service. This includes the expenses required to generate, purchase, and deliver electricity, as well as those to maintain and upgrade the infrastructure to ensure reliability.
Like all utilities across New England, we are facing rising costs driven by factors beyond our control. To keep up with these increasing expenses, electric rates will be adjusted for all customers as of March 1, 2026. These adjustments are necessary due to the following factors:
Increased wholesale energy prices. Driven by a variety of factors, including extreme global inflation and regional constraints, wholesale energy costs in New England have risen drastically over the past several years. These costs are captured in the Generation Charge on a residential and commercial bill and the Generation Service and Demand Charges for industrial customers.
Rising regional transmission rates. The transmission rates that all New England utilities pay are set by ISO New England (ISO-NE), our region’s grid operator that oversees electricity supply and reliability across the six New England states. In recent years, transmission costs in New England have grown significantly due to investments in grid infrastructure, aging system upgrades, and policies aimed at ensuring long-term grid stability. These costs are captured in the Transmission Charge on each customer’s bill.
Material, equipment, administrative, and labor costs. To continue providing award-winning reliable power, SELCO must consistently maintain, improve, and invest in our infrastructure. The costs of the materials and equipment needed to do so have increased along with economic inflation and general costs of living. These costs are captured in the variable Distribution Charge on each customer. The fixed monthly Customer Charge covers administrative expenses for customer-oriented services such as billing and accounting, as well as costs associated with metering.
What’s Changing?
It’s important to note that these cost increases are not unique to SELCO. Every utility in the region is experiencing similar challenges. However, unlike investor-owned utilities (IOUs) like Eversource and National Grid, SELCO is a not-for-profit municipal utility. We do not profit from rate increases; every dollar goes back into maintaining and improving our electric system, programs, and services, to benefit our customers.
The table below summarizes the bill impacts for SELCO’s major rate classes. The full rate charges and individual rate tariffs can be found at SELCO.ShrewsburyMA.gov/rates.
New Rate Classes
SELCO is introducing four new rates to better align costs with specific usage profiles:
GS-3 (General Service Rate 3): For very large industrial customers with exceptionally high usage and demand.
MGS-1 & MGS-2 (Municipal General Service 1 and 2): New categories for larger municipal accounts (like schools and water treatment plants) that better suit their usage profiles.
IQR (Income-Qualified Residential): A new relief rate for low-income households that apply and demonstrate financial need on an annual basis. Qualifying customers will have their monthly Customer Charge waived ($13.17/month after March 1st).
Protective Lighting
Effective March 1, 2026, SELCO is transitioning protective lighting to a two-part rate structure consisting of a fixed monthly charge and a variable usage fee based on the light’s classification (Streetlight, Low Floodlight, or High Floodlight). Additionally, all non-LED fixtures will now be mandatorily converted to LED technology upon failure or at SELCO’s option to ensure continued maintenance and efficiency.
Generation & Transmission Adjustment (GTA)
Effective March 1, 2026, the Generation and Transmission Adjustment (GTA) will be reset to $0.00. This adjustment is a variable tool SELCO uses to account for the fluctuating costs of purchasing and transmitting power from remote plants to our local grid.
Assistance & Programs to Help You Manage Energy Costs
We understand that rising energy costs are concerning, and we’re here to help. SELCO offers programs to make budgeting easier, along with financial assistance options and energy-saving programs to help you reduce your usage.
Billing & Payment Assistance
Budget Billing – Spread your annual electric costs evenly across 12 months to make budgeting easier. We periodically review your account to minimize adjustments. Sign up today at SELCO.ShrewsburyMA.gov/smarthub.
Payment Plans – If you have a past-due balance, we can work with you to set up a payment plan and spread out payments over time. Contact us to discuss your options.
Low Income Home Energy Assistance Program (LIHEAP) – This program helps homeowners and renters cover their heating costs. Apply through the South Middlesex Opportunity Council (SMOC), Shrewsbury Youth & Family Services (SYFS), or the Shrewsbury Senior Center.
Good Neighbor Energy Fund – The Salvation Army’s Good Neighbor Fund provides a one-time grant for individuals facing temporary financial hardship who do not qualify for LIHEAP. Visit magoodneighbor.org or call 508-756-7191 for more information.
Share The Warmth – The Shrewsbury community generously supports SELCO’s Share the Warmth program each year, which helps Shrewsbury residents in need pay for heat, light, and hot water during the winter months. Visit our program page for more information.
Income-Qualified Rate (IQR) – Effective March 1, 2026, SELCO has introduced an income-qualified rate, which will result in a waived customer charge for eligible customers’ monthly electric bill. To learn more, visit SELCO.ShrewsburyMA.gov/IQR.
Energy-Saving Programs
Free Home Energy Audits – Identify ways to improve your home’s energy efficiency and save money. Take advantage of a free energy audit to learn where you can make improvements.
Connected Homes Program – Reduce energy usage and earn incentives by allowing SELCO to manage energy-intensive devices during peak demand times.
Usage Explorer: The Usage Explorer tool provides a detailed look at your energy consumption by the month, day, or even hour, displayed alongside local weather data. By tracking these trends, you can identify exactly when your usage spikes and make informed adjustments like tweaking your thermostat or shifting appliance use to lower your monthly bill.
Rebates & Other Incentives – We offer an array of rebate programs to help residents and businesses save money when they adopt energy-saving technology.
We’re here to help! Contact us at 508-841-8500 or customerservice@shrewsburyma.gov for more information on any of these programs.
Frequently Asked Questions (FAQ)
What is SELCO doing to mitigate rising energy costs?
Though many of the cost increases we are incurring are due to the macroeconomic factors described earlier on this page, SELCO proactively mitigates costs in a variety of ways:
Energy Costs: Set forth in our Power Supply Policy, SELCO has a detailed, structured hedging policy that largely insulates our ratepayers from the whims of the open market. In any given year, we purchase up to 85% of our electricity via direct contracts with suppliers, leaving only a small portion of our supply exposed to New England’s spot market, where prices can be astronomical during high-demand periods. Without this hedging practice in place, our energy costs would have risen much higher than they have throughout the past few years.
Transmission and Other Peak Power Costs: To address the millions of dollars per year that SELCO and its ratepayers incur in transmission and capacity costs–the rates for which are set by ISO-NE and applicable to all of the region’s load-serving entities–SELCO is pursuing multiple utility-scale battery storage projects. A 5-MW battery storage facility could help avoid over $8 million in costs during its lifecycle. Our Connected Homes program also addresses these costs at the individual household level.
Smart Meter (AMI) and Geographic Information System (GIS) Project: SELCO is upgrading our grid through the Smart Meter (AMI) project and GIS projects to increase operational efficiency and improve outage response times. Once complete, these systems will allow for remote outage detection and provide you with detailed usage data to help you better manage and lower your monthly energy costs through Usage Explorer.
Budgeting: Cost transparency is a tenet of our business model as a public power utility. SELCO carries out its annual budgeting, financial reporting, and rate-making in public sessions under the purview of the SELCO Commission, a group of Shrewsbury residents.
Why are SELCO’s rates lower than Investor-owned utilities (IOUs)?
Public Powered Municipal Light Plants (MLPs) like SELCO typically have lower rates than Investor-Owned Utilities (IOUs) like National Grid or Eversource due to several key factors:
Not-for-Profit Structure – MLPs are community-owned and operate on a not-for-profit basis, meaning they set rates based solely on the cost of providing service rather than generating profits for shareholders. MLPs reinvest all revenue back into system improvements, programs, and services.
Local Control & Efficiency – SELCO is governed by a local commission, the SELCO Commission, comprising five Shrewsbury residents. This allows for more efficient decision-making and cost controls tailored to the needs of the community.
Direct Power Purchasing – Many MLPs, including SELCO, have more flexibility in power procurement strategies, often securing cost-effective, long-term power supply agreements without the added markup or regulatory requirements that IOUs face.
Lower Transmission Costs – SELCO benefits from local generation and strategic power agreements that reduce dependence on regional transmission systems, helping keep costs lower.
These factors allow SELCO to offer some of the most competitive electric rates in the region while maintaining reliable service and investing in community-focused programs.
SELCO increased rates in May of 2025. Why is there another increase?
The Cost of Service Study (COSS) completed in August 2024, recommended a multi-phase rate adjustment to avoid a large, one-time increase. Budgeted expenses in the COSS have increased further since the study was performed. This phased approach helps spread out costs gradually rather than overburdening customers with a large increase, especially before the winter months.
Reference Materials
To learn more about the factors behind rising energy prices and SELCO’s rate adjustment, please visit the following sources:
Presentation: January 27, 2026 – Electric Rate Adjustment SELCO Commission
Presentation: March 25, 2025 – Electric Rate Increase – SELCO Commission
Presentation: February 25, 2025 – Electric Rate Approach and Allocation – SELCO Commission
Presentation: August 6, 2024 – Electric Cost of Service Study – SELCO Commission
ISO New England: Monthly Wholesale Electricity Prices and Demand in New England
U.S. Energy Information Administration: Electricity Explained: Factors Affecting Electricity Prices