Massachusetts natural gas utility customers are getting a temporary rate cut after state regulators responded to soaring delivery charges, but many are saying the short-term relief is not enough. The Department of Public Utilities sent a letter Thursday ordering the state’s five major gas companies — Berkshire Gas, Eversource, Liberty Utilities, National Grid and Unitil — to slash customer bills by at least 5% in March and April. Gas companies will be allowed to recover the money lost to the cuts during the spring and summer months and will be allowed to charge interest.It was a response to customer outrage after 30% rate hikes, approved by state regulators at the DPU, and the exceptionally cold winter sent bills higher than many customers had ever seen.DPU officials said the agency was unable to direct the utilities to reduce delivery charges in February bills. Attorney General Andrea Campbell issued her own letter on Friday, urging the DPU and utilities to enact long-term rate relief. She also suggested that the utility companies should shoulder a portion of the deferred costs caused by the temporary 5% cut “to help alleviate ratepayer impacts.” Governor Healey’s office also said the cuts do not go far enough. “Governor Healey called on the DPU to take immediate action to provide relief to customers this heating season. This is not good enough. Massachusetts residents are struggling with these high costs – the utilities need to go deeper than 5 percent and deferrals,” said a Healey spokesperson.Delivery charges on gas bills have skyrocketed in recent years, rising anywhere from 30 to 38%. Those fees now far exceed the price of supply on a natural gas bill in Massachusetts.“You increase everything by 30%, and you’re giving me a 5% kickback to shut up?” said National Grid customer Frank McManus. “What does that do for me? I’m still net negative 25%, and they’re going to collect it all back plus interest?”Video below: Customers react to news of 5% cut“I believe they can do better than that, and they should do better than that,” said National Grid customer Denise Reed.She’s been in her Dorchester home for 40 years and has never seen gas bills as high as she saw this winter.“When I realized it was delivery costs, I was like, what, are you kidding me?” she said.These rate hikes are linked, in part, to a hike in required funding for the Mass Save program and other state-mandated energy efficiency and green energy policies. Those hikes are approved by the DPU.Eversource and National Grid said they had no choice but to raise the rates because of those state-mandated policies.NewsCenter 5’s Ben Simmoneau asked Gov. Maura Healey on Wednesday why the state seemed to be caught off guard by the impact of the huge rate increases, which later resulted in the order on Thursday.”You appointed two of three current DPU commissioners,” Simmoneau asked. “Does your administration bear some responsibility for not acting sooner on these rates?””No, I don’t believe so,” Healey said. “We have been focused on lowering costs across the board as an administration. They’re an independent agency. There’s a process they go through with these rate cases.”An Eversource spokesman said that the utility will implement the 5% cut through the Local Distribution Adjustment Charge, which is on the delivery side of the bill and also includes the state policy-driven charges. All five companies have to submit their implementation plan by Monday. Mass Save pays customers hefty rebates to switch their heat away from gas and oil to electric. The program is reauthorized by the state every three years, and the new plan, which takes effect in 2025, is 25% — or $1 billion — more expensive.“I think we need to understand what went into the approval of the rate filing that gave us these rates,” said state Senate Republican Leader Bruce Tarr (R, Essex).He conceded the new Mass Save plan might be too large.“The question is do we need to go at the pace we are going (on climate change initiatives) given the impact on affordability,” Tarr said.State Rep. Jeff Roy, who has chaired the Joint Committee on Utilities said the state can’t throw out it’s climate goals but something must change.“I’m as disturbed as anyone that this is the direction that we’re facing, and we have to get it under control,” Roy said. “We have to continue pushing forward but, in the meantime, get some stability for consumers.”Meanwhile, a NewsCenter 5 analysis shows delivery charges on electricity bills also grew by more than 30% over two years. Electricity customers pay for some of the same state-mandated programs on the delivery side of their bills. Video: DPU issues letter ordering Mass. gas companies to reduce total gas bills
Massachusetts natural gas utility customers are getting a temporary rate cut after state regulators responded to soaring delivery charges, but many are saying the short-term relief is not enough.
The Department of Public Utilities sent a letter Thursday ordering the state’s five major gas companies — Berkshire Gas, Eversource, Liberty Utilities, National Grid and Unitil — to slash customer bills by at least 5% in March and April. Gas companies will be allowed to recover the money lost to the cuts during the spring and summer months and will be allowed to charge interest.
It was a response to customer outrage after 30% rate hikes, approved by state regulators at the DPU, and the exceptionally cold winter sent bills higher than many customers had ever seen.
DPU officials said the agency was unable to direct the utilities to reduce delivery charges in February bills.
Attorney General Andrea Campbell issued her own letter on Friday, urging the DPU and utilities to enact long-term rate relief. She also suggested that the utility companies should shoulder a portion of the deferred costs caused by the temporary 5% cut “to help alleviate ratepayer impacts.”
Governor Healey’s office also said the cuts do not go far enough.
“Governor Healey called on the DPU to take immediate action to provide relief to customers this heating season. This is not good enough. Massachusetts residents are struggling with these high costs – the utilities need to go deeper than 5 percent and deferrals,” said a Healey spokesperson.
Delivery charges on gas bills have skyrocketed in recent years, rising anywhere from 30 to 38%. Those fees now far exceed the price of supply on a natural gas bill in Massachusetts.
“You increase everything by 30%, and you’re giving me a 5% kickback to shut up?” said National Grid customer Frank McManus. “What does that do for me? I’m still net negative 25%, and they’re going to collect it all back plus interest?”
Video below: Customers react to news of 5% cut
“I believe they can do better than that, and they should do better than that,” said National Grid customer Denise Reed.
She’s been in her Dorchester home for 40 years and has never seen gas bills as high as she saw this winter.
“When I realized it was delivery costs, I was like, what, are you kidding me?” she said.
These rate hikes are linked, in part, to a hike in required funding for the Mass Save program and other state-mandated energy efficiency and green energy policies. Those hikes are approved by the DPU.
Eversource and National Grid said they had no choice but to raise the rates because of those state-mandated policies.
NewsCenter 5’s Ben Simmoneau asked Gov. Maura Healey on Wednesday why the state seemed to be caught off guard by the impact of the huge rate increases, which later resulted in the order on Thursday.
“You appointed two of three current DPU commissioners,” Simmoneau asked. “Does your administration bear some responsibility for not acting sooner on these rates?”
“No, I don’t believe so,” Healey said. “We have been focused on lowering costs across the board as an administration. They’re an independent agency. There’s a process they go through with these rate cases.”
An Eversource spokesman said that the utility will implement the 5% cut through the Local Distribution Adjustment Charge, which is on the delivery side of the bill and also includes the state policy-driven charges. All five companies have to submit their implementation plan by Monday.
Mass Save pays customers hefty rebates to switch their heat away from gas and oil to electric. The program is reauthorized by the state every three years, and the new plan, which takes effect in 2025, is 25% — or $1 billion — more expensive.
“I think we need to understand what went into the approval of the rate filing that gave us these rates,” said state Senate Republican Leader Bruce Tarr (R, Essex).
He conceded the new Mass Save plan might be too large.
“The question is do we need to go at the pace we are going (on climate change initiatives) given the impact on affordability,” Tarr said.
State Rep. Jeff Roy, who has chaired the Joint Committee on Utilities said the state can’t throw out it’s climate goals but something must change.
“I’m as disturbed as anyone that this is the direction that we’re facing, and we have to get it under control,” Roy said. “We have to continue pushing forward but, in the meantime, get some stability for consumers.”
Meanwhile, a NewsCenter 5 analysis shows delivery charges on electricity bills also grew by more than 30% over two years. Electricity customers pay for some of the same state-mandated programs on the delivery side of their bills.
Video: DPU issues letter ordering Mass. gas companies to reduce total gas bills