ew law also provides electricity rate cuts to consumers while they choose which company to buy their electricity from. The rates are guaranteed to drop 15%, with 10% coming by March 1, 1998 and another 5% occurring by September 1, 1999, as the law provides a rate cap to lock these lower rates in for years to come. The law also provides the opportunity to eliminate sales tax on electricity transmission costs for non-industrial businesses, saving this sector an estimated $30 million a year. The law also created a 10% rate discount for farmers and others in the agricultural industry. Therefore, under the new system, your local electric company still delivers electricity to your home or business. However, you can purchase the electricity from the local company at the guaranteed minimum rate reduction, or you can choose to buy your electricity from another competing supplier if you decide that company offers better rates.In addition to lowering rates and allowing consumers to choose their power suppliers, the new law also provides many other provisions designed to protect the consumer. The law requires all competitive power suppliers to be registered with the state Department of Telecommunications and Energy, and also requires the suppliers to continue to provide reliable service. The law also prohibits suppliers from switching a customer to a different supplier without the customer's consent. The law also creates rate reductions for low-income consumers, such as senior citizens on a fixed income. As well as providing for these consumer protections, the law also entices economic growth within the state by lowering the cost of doing business through lower electric rates. This lower cost of doing business due to lower electric rates will encourage new employers, both large and small, to move into Massachusetts, as well as encouraging existing businesses to stay. In fact, in the short period of time the law has been in effect, it has spurred th...
