Illustrative Case: Worcester Cultivation Facility Exits National Grid Monthly Basic Service
This is not a real client. It is a worked example of a 35,000-square-foot indoor cultivator in National Grid territory on rate G-2 that stayed on monthly Basic Service, absorbed ISO-NE winter price spikes on the supply line, and moved to a DPU-licensed competitive supplier on a fixed contract while keeping National Grid delivery and its $15.06 per kW distribution demand charge.
By Jason Taken, Founder, Jaken Energy
Updated September 12, 2026Representative example, not a named clientThis is a representative example built from typical facility profiles, published utility tariffs, and public rate data, not a named client engagement. The numbers show how the math works in this state and facility type. Your own results depend on your load profile, utility territory, and market timing.
This case study describes a representative National Grid indoor cultivator built from public tariff data and labeled assumptions. It is not a real client, and the savings figures are modeled, not measured.
The facility and starting situation
Assume an indoor Marijuana Cultivator in Worcester on a National Grid account in ISO New England [ma-gl-164-1f]. The building is 35,000 square feet with 14,000 square feet of flowering canopy. The CCC reported 782 operating cannabis businesses statewide as of August 2026 [ma-ccc-10b-sales-2026]. A June 2026 cultivation licensing freeze affects new entrants, not this existing site [ma-ccc-10b-sales-2026].
Lighting must meet 935 CMR 500.120: horticultural lighting power density at or below 36 watts per square foot of canopy, or DLC-listed fixtures beating minimum efficacy by 15 percent [ma-935-cmr-500-120]. The operator uses DLC-listed LEDs at 32 watts per square foot and files annual energy and water usage reports at renewal [ma-935-cmr-500-120].
Massachusetts winters drive envelope and dehumidification load: 6,132 heating degree days and 516 cooling degree days statewide, with humid summers in river valleys [noaa-cag-massachusetts]. Peak demand averages 175 kW over twelve months. Usage exceeds 10,000 kWh per month, so the account is on National Grid G-2 General Service (Demand), not G-1 [national-grid-ma-rates].
Supply stayed on Basic Service. The operator never chose a competitive supplier. Under DPU rules, medium and large C&I Basic Service customers default to monthly pricing procured in four solicitations per year covering 100 percent of a 3-month period [ma-dpu-basic-service]. A 3-month fixed Basic Service option exists on request; this account never elected it [ma-dpu-basic-service].
Annual usage is assumed at 1.82 million kWh. At the EIA June 2026 Massachusetts commercial average of 24.52 cents per kWh, that volume implies about $446,000 at average prices [eia-epm-5-6-a]. The US commercial average was 14.19 cents in the same period [eia-epm-5-6-a].
What the baseline bills showed
Tariff rates below are cited; usage and supply swings are modeled inputs.
| Line item | Assumption or rate | Monthly (January) | Monthly (July) |
|---|---|---|---|
| Flower and veg lighting | 320 kW combined | 138,240 kWh | 138,240 kWh |
| HVAC and dehumid | 140 kW average | 100,800 kWh | 100,800 kWh |
| Peak demand | 175 kW / 168 kW | 175 kW | 168 kW |
| Customer charge | $45 per month [national-grid-ma-rates] | $45 | $45 |
| Distribution demand | $15.06 per kW [national-grid-ma-rates] | $2,636 | $2,530 |
| Distribution energy | 1.444 cents per kWh [national-grid-ma-rates] | ~$2,200 | ~$2,200 |
| Transmission | 3.509 cents per kWh [national-grid-ma-rates] | ~$5,350 | ~$5,350 |
| Basic Service supply (modeled) | 14.2 cents Jan / 11.8 cents Jul | ~$21,600 | ~$17,900 |
| EE and solar riders | ~2.1 cents per kWh combined [national-grid-ma-rates] | ~$3,200 | ~$3,200 |
| Modeled total | ~$35,000 | ~$31,200 |
Annualized modeled all-in spend: about $410,000. Supply swung roughly 2.4 cents per kWh between the modeled January and July Basic Service strips, a common pattern when medium C&I customers float on monthly Basic Service tied to ISO-NE wholesale markets [ma-dpu-basic-service].
Delivery demand was about $31,000 a year at $15.06 per kW on a 175 kW average peak [national-grid-ma-rates]. That line does not move when supply switches [ma-dpu-competitive-supply-overview].
What changed
The operator ran a competitive supply RFP instead of requesting utility Basic Service fixed strips.
Supplier licensing check. Massachusetts grants retail access to all Eversource, National Grid, and Unitil customers [ma-dpu-basic-service]. The winning bidder held a DPU competitive supplier license for C&I service [ma-gl-164-1f] [ma-dpu-competitive-supply-overview].
Fixed 24-month contract. The award was 10.8 cents per kWh all-in on supply and RPS compliance, with capacity structured as a fixed adder. Enrollment followed the Massachusetts switching guide. National Grid continued as the delivery company on a single bill [ma-dpu-competitive-supply-overview].
Optional 3-month Basic Service benchmark. For comparison, the operator pulled historic Basic Service rates from the DPU spreadsheet linked on the Basic Service page [ma-dpu-basic-service]. The fixed contract traded away index upside for budget certainty through two winter seasons.
Demand work in parallel, not instead. G-2 demand charges remain National Grid's [national-grid-ma-rates]. The team staggered one flower room photoperiod, cutting modeled peak from 175 kW to 162 kW. See demand charges explained.
The math after
Compare modeled monthly Basic Service to the fixed supplier contract on 1.82 million kWh a year. Delivery lines are identical.
| Component | Before (annual, modeled) | After (annual, modeled) | Notes |
|---|---|---|---|
| National Grid delivery | ~$155,000 | ~$152,000 | Lower kW after stagger |
| Basic Service supply + RPS | ~$255,000 at 14.0 cents avg | Monthly volatility | |
| Fixed competitive supply | ~$197,000 at 10.8 cents | 24-month term | |
| Modeled all-in | ~$410,000 | ~$349,000 | ~$61,000 spread |
About 85 percent of the modeled spread is supply-side. Delivery savings from 13 kW of peak reduction are roughly $2,400 a year at $15.06 per kW plus small kWh effects [national-grid-ma-rates].
On a cents-per-kWh basis, modeled all-in fell from 22.5 cents to 19.2 cents. That still exceeds the EIA commercial average because G-2 demand and ISO-NE transmission riders remain on the delivery bill [eia-epm-5-6-a] [national-grid-ma-rates].
Budget certainty mattered for lender covenants. Monthly Basic Service would have reset four times a year on DPU procurement cycles [ma-dpu-basic-service]. The fixed line let the operator forecast roughly $16,400 per month on supply instead of a plus or minus $18,000 band.
What did not work
Staying on monthly Basic Service through two winters. Modeled January 2025 and January 2026 supply lines exceeded 15 cents per kWh during cold snaps. The operator had no hedge.
A six-month index contract pilot. One broker offered a monthly index product. A February spike added $9,000 to a single bill versus the fixed quote. The pilot ended early.
Assuming supply savings fix demand. A 1.2 cent per kWh supply improvement on 1.82 million kWh is about $22,000 a year. Unchecked peak growth toward 200 kW would add $376 per kW-year on G-2 before crossing into G-3 time-of-use [national-grid-ma-rates].
Ignoring 935 CMR reporting. The supplier switch did not change CCC energy reporting obligations at renewal [ma-935-cmr-500-120].
Massachusetts lighting compliance and supply
935 CMR 500.120 caps horticultural lighting power density for most tiers [ma-935-cmr-500-120]. Supply switch does not change compliance path. LED and QPL documentation should stay aligned with rebate and regulator filings in parallel with supplier enrollment.
Basic Service six-month reset versus fixed term
Massachusetts Basic Service for commercial customers resets on a published six-month cadence [ma-dpu-basic-service]. A fixed competitive supply contract hedges that reset for the contract term. Delivery on Eversource or National Grid remains unchanged. Align contract end date with Basic Service publication dates when comparing renewal offers.
National Grid versus Eversource in one company
Massachusetts cultivators may sit on either major IOU. Basic Service reset dates and delivery tariffs differ. Competitive supply enrollment is per meter. A fixed ESCO price on a Boston-area meter does not change Western Mass delivery on a second site [ma-dpu-basic-service].
935 CMR lighting cap independent of supply
Supply switch does not change horticultural lighting power density limits [ma-935-cmr-500-120]. Compliance letter and ESCO contract should proceed on parallel tracks with the same fixture schedule documentation.
Mass Save overlap with supply switch
Mass Save business programs may offer efficiency incentives independent of Basic Service versus competitive supply choice [ma-dpu-competitive-supply-overview]. LED and HVAC measures should pursue Mass Save pre-approval on the same timeline as ESCO contract execution so savings stack without double-counting in custom applications.
ESCO renewal versus Basic Service reset
Massachusetts Basic Service resets on a six-month cadence published by the Department of Public Utilities [ma-dpu-basic-service]. Align ESCO contract notice windows with Basic Service publication dates so renewal decisions compare fresh benchmarks [ma-dpu-competitive-supply-overview].
National Grid western Mass delivery
Cultivation sites in National Grid territory use different delivery rate sheets than Eversource Eastern Massachusetts. ESCO supply can still aggregate under one supplier, but delivery modeling must be per utility [ma-dpu-competitive-supply-overview].
PE letter and ESCO start date
Coordinate energy compliance professional letter submission with ESCO contract start so reporting year boundaries match meter reads [ma-935-cmr-500-120].
PE letter and ESCO start date
Coordinate energy compliance professional letter submission with ESCO contract start so reporting year boundaries match meter reads [ma-935-cmr-500-120].
Document Basic Service benchmark at ESCO signing
Save the Department of Public Utilities Basic Service rate publication from the ESCO contract date in the compliance folder. Future renewals compare against the correct historical benchmark, not memory [ma-dpu-basic-service].
Lessons that transfer to other Massachusetts cultivators
Separate delivery from supply on National Grid G-2: $15.06 per kW distribution demand is National Grid's regardless of supplier [national-grid-ma-rates] [ma-dpu-competitive-supply-overview]. Medium and large C&I Basic Service defaults to monthly pricing; treat that as an indexed product unless you opt into 3-month utility fixed strips or a competitive contract [ma-dpu-basic-service]. Full commercial choice applies on National Grid and Eversource [ma-gl-164-1f]. Compare all-in supply including RPS, not a postcard kWh rate [ma-dpu-competitive-supply-overview]. Watch the 200 kW threshold where G-3 time-of-use begins [national-grid-ma-rates]. Read fixed vs. index vs. block-and-index contracts and the National Grid utility page.
Frequently asked questions
Is this a real Massachusetts cultivation facility?
No. The facility, owner, and savings totals are illustrative. National Grid G-2 rate components, DPU Basic Service rules, CCC energy standards, and EIA averages cited are from public sources.
Does switching supplier change National Grid delivery demand charges?
No. G-2 customers still pay the $15.06 per kW distribution demand charge and per-kWh delivery riders to National Grid. Only the supply and minimum RPS lines move to the competitive supplier.
Why was this grow on monthly Basic Service instead of a fixed price?
Medium and large C&I customers default to monthly Basic Service pricing unless they request a 3-month fixed option from the utility. Monthly prices change each month based on four competitive solicitations per year.
Can any Massachusetts cultivator shop for supply?
Yes, on Eversource, National Grid, and Unitil. Municipal light plant towns do not have retail choice. Suppliers must hold a DPU license under M.G.L. c. 164 section 1F.
Did the lighting retrofit affect the supply contract price?
Indirectly. Lower kWh reduced total spend, but the supplier priced on historical usage. DLC-listed LEDs also helped meet 935 CMR 500.120 efficacy rules for renewal reporting.
Related reading
- Massachusetts Cannabis Energy: Electricity Choice, ISO-NE Rates, and CCC Licensing for Licensed Operators
Massachusetts cannabis power: DPU choice on Eversource and National Grid, Basic Service benchmarks, and 24.52 cents/kWh commercial average.
- Massachusetts Cannabis Cultivation Energy: Lighting Caps, Winter Heat Loss, and Eversource G-2 Demand
Massachusetts indoor grow power: 935 CMR 500.120 lighting limits, 6,132 HDD climate, utility demand classes, and a worked cost example.
- National Grid Massachusetts for Cannabis Facilities: G-3 Time-of-Use, Worcester Territory, and Supply Choice
National Grid Massachusetts cannabis billing: G-1/G-2/G-3 classes, TOU peak hours, demand charges in central MA, and Basic Service benchmarks.
- How to Switch Electricity Suppliers in Massachusetts: A Step-by-Step Guide for Cannabis Businesses
Step-by-step Massachusetts supplier switching for cannabis on Eversource, National Grid, and Unitil: Basic Service benchmarks, DPU rules, and enrollment timing.
- Massachusetts Commercial Electricity Rates for Cannabis Facilities: Basic Service, ISO-NE, and Utility Classes
Massachusetts commercial power at 24.52 cents/kWh vs. the U.S. average, Eversource and National Grid G-1/G-2/G-3 demand charges, and Basic Service tiers.
- Fixed vs. Index vs. Block-and-Index Electricity Contracts
What each supply structure means, who carries price risk, which fits a 24/7 grow load, what pass-throughs do, and a worked 12-month comparison.
- How Long Does Switching Electricity Suppliers Take?
How long supplier switches take: PA's 3-day rule, CT meter-read timing, Texas ERCOT, rescission windows, and mid-contract moves for commercial accounts.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.
- [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025 — U.S. Energy Information Administration. Accessed 2026-09-11.
- [ma-dpu-basic-service]Basic service information and rates (updated July 6, 2026) — Massachusetts Department of Public Utilities. Accessed 2026-09-11.
- [ma-dpu-competitive-supply-overview]Competitive electric supply product overview — Massachusetts Department of Public Utilities. Accessed 2026-09-11.
- [national-grid-ma-rates]Massachusetts Business Service Rates (G-1, G-2, G-3) — National Grid. Accessed 2026-09-11.
- [ma-935-cmr-500-120]935 CMR 500.120: Additional Operational Requirements for Marijuana Cultivators (energy and environmental standards) — Massachusetts Cannabis Control Commission (via Cornell LII). Accessed 2026-09-11.
- [noaa-cag-massachusetts]Climate at a Glance: Massachusetts statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.
- [ma-ccc-10b-sales-2026]Massachusetts Marijuana Establishments Hit $10 Billion in Gross Sales (press release, September 9, 2026) — Massachusetts Cannabis Control Commission. Accessed 2026-09-11.
- [ma-gl-164-1f]M.G.L. Part I, Title XXII, Chapter 164, Section 1F: Retail access; licensing of generation companies, aggregators, suppliers and energy brokers — Massachusetts General Court. Accessed 2026-09-11.