Five of Massachusetts’ major gas companies are being ordered to reduce customer gas bills by at least 5% starting next month amid consumer angst over rising utility costs.
The Massachusetts Department of Public Utilities issued letters Thursday, Feb. 20 to Berkshire Gas, Eversource, Liberty Utilities, National Grid and Unitil to address skyrocketing delivery charges.
The reduction will affect bills for the months of March and April.
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The letter cites 30% rate hikes approved by state regulators at DPU, coupled with an extremely cold winter as the cause for “unsustainable” consumer bills.
“The combination of increased supply costs, the recovery of unusually high programmatic costs through delivery charges, and a cold winter has driven customer bills to unsustainable levels,” DPU wrote.
“These circumstances warrant immediate measures to provide relief to consumers.”
However, the fix may only be temporary — as gas companies may be allowed to charge interest on money lost to the cuts during the warmer spring and summer months when utility bills are typically less expensive for consumers.
DPU said it will determine whether to “shift certain delivery costs from the peak period to the shoulder and summer seasons on a permanent basis.”
Why are energy bills so much more expensive this year?
On Nov. 1, 2024, Massachusetts’ DPU approved a winter price hike of 11-13% for National Grid and 25-30% for Eversource.
For natural gas, customers are charged in two parts — supply and delivery.
CBS reported Eversource is charging 27% more in delivery costs for heating bills than it was last year and is about twice as much as its supply charges.
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According to CBS, Eversource told WBZ-TV a large portion of the delivery charges go to building and maintaining infrastructure, including underground gas lines.
The outlet reported an “ever-growing portion” of a delivery bill pays for the Mass Save program, which provides thousands for people to get things like insulation and new heating elements.
Even if you don’t use Mass Save, you still pay for it.
Kyle Murray, an energy efficiency advisor to the state, previously told MassLive if Massachusetts is “going to be a leader and continue to be ambitious,” in its cost-saving efforts “we need to find other ways of financing these programs that aren’t solely on the backs of ratepayers.”
And data shows low- and middle-income ratepayers don’t take advantage of Mass Save the way higher-income households do.
Mass Save’s funding has grown by nearly $3 billion since 2013, MassLive previously reported.
It is funded primarily by energy efficiency surcharges on all monthly gas and electric bills for customers of the Mass Save utilities which includes Berkshire Gas, Cape Light Compact, Eversource, Liberty, National Grid and Unitil.
In return, the program offers them a slate of incentives to weatherize and decarbonize their homes and businesses.