After delivery fees caused Massachusetts residents’ energy bills to skyrocket, Gov. Maura Healey said the current plan to defer fees — and, in one case, collect interest — is “not good enough.” Healey’s statements to the Greater Boston Chamber of Commerce come after weeks of NewsCenter 5’s Ben Simmoneau covering the increasing cost burden from rising delivery fees. Many customers said their recent bills were the highest they have ever had to pay. It’s now common for delivery charges to run two or three times the actual cost of the gas itself, driven in large part by the state’s growing Mass Save program, which pays hefty rebates to customers who switch their heating away from natural gas and other fossil fuels. The new Mass Save plan costs 25% more than the previous plan.The three major natural gas utilities in Greater Boston — Eversource, Unitil and National Grid — all said Monday they would drop customer bills by an average of 10% in March and April. That came in response to the state Department of Public Utilities ordering them to provide rate relief after a winter of skyrocketing bills fueled by runaway gas delivery charges. It’s just a rate deferral and not a rate cut because the companies get to recover the money over the warm summer months when gas usage — and bills — are considerably lower.Of those three companies, National Grid was alone in saying it would charge 4.37% interest on the deferral, which is about $1 million total.NewsCenter 5 also learned it is unlikely that customers will be allowed to opt out if the bill deferral plan is approved by regulators at the Massachusetts Department of Public Utilities. Opting out would create billing complications for utilities since these rates must take effect on March 1.Video below: Interest plan sparks outrageOn Wednesday, Healey expressed dissatisfaction with this plan.”The utilities offered to spread the pain out over the course of the year. That is not good enough. And it’s why I have told the DPU to explore every avenue to reduce costs. We need to see real action on this, and we need to see it now,” she said.The governor said her administration would propose new legislation to bring down costs for ratepayers. Healey also promised to develop an “energy affordability agenda” that would spur homegrown clean energy generation and limit future price spikes. “Massachusetts will be stronger and more affordable when we can rely on ourselves for energy. We won’t be tied to costly, volatile fuels that spike every winter and ship our dollars out of state,” she said.
After delivery fees caused Massachusetts residents’ energy bills to skyrocket, Gov. Maura Healey said the current plan to defer fees — and, in one case, collect interest — is “not good enough.”
Healey’s statements to the Greater Boston Chamber of Commerce come after weeks of NewsCenter 5’s Ben Simmoneau covering the increasing cost burden from rising delivery fees. Many customers said their recent bills were the highest they have ever had to pay.
It’s now common for delivery charges to run two or three times the actual cost of the gas itself, driven in large part by the state’s growing Mass Save program, which pays hefty rebates to customers who switch their heating away from natural gas and other fossil fuels. The new Mass Save plan costs 25% more than the previous plan.
The three major natural gas utilities in Greater Boston — Eversource, Unitil and National Grid — all said Monday they would drop customer bills by an average of 10% in March and April. That came in response to the state Department of Public Utilities ordering them to provide rate relief after a winter of skyrocketing bills fueled by runaway gas delivery charges. It’s just a rate deferral and not a rate cut because the companies get to recover the money over the warm summer months when gas usage — and bills — are considerably lower.
Of those three companies, National Grid was alone in saying it would charge 4.37% interest on the deferral, which is about $1 million total.
NewsCenter 5 also learned it is unlikely that customers will be allowed to opt out if the bill deferral plan is approved by regulators at the Massachusetts Department of Public Utilities. Opting out would create billing complications for utilities since these rates must take effect on March 1.
Video below: Interest plan sparks outrage
On Wednesday, Healey expressed dissatisfaction with this plan.
“The utilities offered to spread the pain out over the course of the year. That is not good enough. And it’s why I have told the DPU to explore every avenue to reduce costs. We need to see real action on this, and we need to see it now,” she said.
The governor said her administration would propose new legislation to bring down costs for ratepayers. Healey also promised to develop an “energy affordability agenda” that would spur homegrown clean energy generation and limit future price spikes.
“Massachusetts will be stronger and more affordable when we can rely on ourselves for energy. We won’t be tied to costly, volatile fuels that spike every winter and ship our dollars out of state,” she said.