After a cold winter of skyrocketing energy bills, Massachusetts state officials are taking the biggest step yet to cut electric and gas rates.Regulators at the state Department of Public Utilities rejected the size of the proposed Mass Save plan Friday, telling the utilities their customers can’t afford the costs. The original plan, to grow the program by 25% to $5 billion, will go back to the drawing board with a $4.5 billion price tag.That is still larger than the previous Mass Save plan of $4 billion but represents a new acknowledgment from the state of how much growing energy bills have burdened Massachusetts residents.The $500 million trim means gas and electric customers will be getting money back — likely through reduced rates — since the utilities have been collecting at higher rates since the fall, anticipating the larger new Mass Save plan.According to the DPU’s announcement, utility companies will also be directed to list the energy efficiency surcharge as a separate line item on future gas bills. The surcharge is already listed on electric bills. State-mandated programs, of which Mass Save is the largest, are among the primary reasons gas and electric delivery rates have risen sharply since 2023. A NewsCenter 5 analysis found that electricity delivery rates have risen in excess of 30%. Gas delivery rates are up even more, rising as much as 38% in the same two-year time period. The increases are well beyond the rate of inflation and compound the high utility costs in New England. The region pays at least 40% above the national average in both gas and electric costs.Also Friday, the DPU approved plans by Berkshire Gas, Eversource, Liberty Utilities, National Grid and Unitil to cut customer gas bills by 10% in March and April and recover that money over the warmer summer months when usage and gas bills are much lower. National Grid, which had earlier filed a plan to collect 4.37% interest on the rate deferral, scrapped that plan and instead said it wouldn’t collect interest.The two-month rate deferral did little to appease utility customers across the state who said delivery charges have grown at an unsustainable rate. Massachusetts Gov. Maura Healey, who has appointed two of the three current DPU commissioners, and Attorney General Andrea Campbell joined in the outcry.Healey told the Greater Boston Chamber of Commerce that the plan was “not good enough.” She announced that her administration would propose new legislation about energy affordability and independence “in the coming weeks.” After Friday’s announcement from the DPU, Healey reiterated that she wants more done.”The $500 million reduction in the Mass Save budget will mean real savings for people, while ensuring the vital money savings from energy efficiency can move forward. We also know this is not enough. We need urgent action to continue to bring down costs and prevent these price spikes from happening again,” she said in a statement. Campbell issued a letter in which she urged the DPU and utilities to enact long-term rate relief. NewsCenter 5 reporter Ben Simmoneau was the first to cover the surging gas bills that resulted from an exceptionally cold winter. Throughout weeks of coverage, many customers said their recent bills were the highest they’ve ever had to pay.”The primary driver behind these increased rates is the Mass Save program,” said Michael Ferrante, who serves on the Massachusetts Energy Efficiency Advisory Council, which helps utilities develop the Mass Save plan.Ferrante has been on the council since it was formed in 2008.”I’m not surprised by the outrage,” he said. “What I am surprised about is the lack of involvement with lawmakers who passed these aggressive climate bills and should have been paying more attention to the impact of those laws.”Ferrante says there was little conversation around affordability when the new, much larger Mass Save plan was being developed.”There are certainly people on the Energy Efficiency Advisory Council that pushed back heavily on rates and how they impact the low income community especially,” he said. “But in general, there was not a lot of discussion about the actual rates and what would happen to them at this point in time.”Video below: Interest plan sparks outrageFerrante represents the oil and propane heating industries on the committee, so he does come at the topic with a point of view. In a push to cut the state’s greenhouse gas emissions, Mass Save stopped paying for new oil and gas heating systems in 2022. The plan will now only cover weatherization and electric heat pumps.The problem with that, Ferrante argues, is that the electricity in the New England grid is still mostly generated by power plants burning natural gas.”So consumers are paying for something that is really not clean yet,” he said.Others argue that cutting Mass Save is short-sighted.When asked about rising gas bills last week, Healey defended the Mass Save program but seemed open to considering other ways to fund it.”I’m happy to have a look at that in terms of how it’s working right now in terms of the money coming in,” she said. “But I would say that Mass Save is not the issue.””These programs actually save us money, not just if you take advantage of the program yourself, but by lessening energy use overall,” said Kyle Murray, an environmental lawyer who also serves on the EEAC with Ferrante. “Mass Save has resulted in $31 billion in savings and benefits.”Murray believes a decision from the state to trim the new Mass Save plan will make it harder for Massachusetts to meet its climate goals. Those goals are rapidly getting steeper, from a 25% reduction in greenhouse gas emissions in 2020 — which the state exceeded by having a 31% drop — to 50% by 2030. The state is aiming for an 80% drop below 1990 emissions by 2050.Instead, Murray says it may be time to turn up the heat on other drivers of high utility delivery rates. On gas bills, that includes a plan to fix and replace miles of pipes across the state, all while Massachusetts is trying to phase out natural gas.”It’s certainly a challenge right now,” Murray said. “The Washington situation is going to make it very difficult to hit our climate goals. That doesn’t mean it’s not worthy to still be working on them.”
After a cold winter of skyrocketing energy bills, Massachusetts state officials are taking the biggest step yet to cut electric and gas rates.
Regulators at the state Department of Public Utilities rejected the size of the proposed Mass Save plan Friday, telling the utilities their customers can’t afford the costs. The original plan, to grow the program by 25% to $5 billion, will go back to the drawing board with a $4.5 billion price tag.
That is still larger than the previous Mass Save plan of $4 billion but represents a new acknowledgment from the state of how much growing energy bills have burdened Massachusetts residents.
The $500 million trim means gas and electric customers will be getting money back — likely through reduced rates — since the utilities have been collecting at higher rates since the fall, anticipating the larger new Mass Save plan.
According to the DPU’s announcement, utility companies will also be directed to list the energy efficiency surcharge as a separate line item on future gas bills. The surcharge is already listed on electric bills.
State-mandated programs, of which Mass Save is the largest, are among the primary reasons gas and electric delivery rates have risen sharply since 2023. A NewsCenter 5 analysis found that electricity delivery rates have risen in excess of 30%. Gas delivery rates are up even more, rising as much as 38% in the same two-year time period.
The increases are well beyond the rate of inflation and compound the high utility costs in New England. The region pays at least 40% above the national average in both gas and electric costs.
Also Friday, the DPU approved plans by Berkshire Gas, Eversource, Liberty Utilities, National Grid and Unitil to cut customer gas bills by 10% in March and April and recover that money over the warmer summer months when usage and gas bills are much lower. National Grid, which had earlier filed a plan to collect 4.37% interest on the rate deferral, scrapped that plan and instead said it wouldn’t collect interest.
The two-month rate deferral did little to appease utility customers across the state who said delivery charges have grown at an unsustainable rate.
Massachusetts Gov. Maura Healey, who has appointed two of the three current DPU commissioners, and Attorney General Andrea Campbell joined in the outcry.
Healey told the Greater Boston Chamber of Commerce that the plan was “not good enough.” She announced that her administration would propose new legislation about energy affordability and independence “in the coming weeks.”
After Friday’s announcement from the DPU, Healey reiterated that she wants more done.
“The $500 million reduction in the Mass Save budget will mean real savings for people, while ensuring the vital money savings from energy efficiency can move forward. We also know this is not enough. We need urgent action to continue to bring down costs and prevent these price spikes from happening again,” she said in a statement.
Campbell issued a letter in which she urged the DPU and utilities to enact long-term rate relief.
NewsCenter 5 reporter Ben Simmoneau was the first to cover the surging gas bills that resulted from an exceptionally cold winter. Throughout weeks of coverage, many customers said their recent bills were the highest they’ve ever had to pay.
“The primary driver behind these increased rates is the Mass Save program,” said Michael Ferrante, who serves on the Massachusetts Energy Efficiency Advisory Council, which helps utilities develop the Mass Save plan.
Ferrante has been on the council since it was formed in 2008.
“I’m not surprised by the outrage,” he said. “What I am surprised about is the lack of involvement with lawmakers who passed these aggressive climate bills and should have been paying more attention to the impact of those laws.”
Ferrante says there was little conversation around affordability when the new, much larger Mass Save plan was being developed.
“There are certainly people on the Energy Efficiency Advisory Council that pushed back heavily on rates and how they impact the low income community especially,” he said. “But in general, there was not a lot of discussion about the actual rates and what would happen to them at this point in time.”
Video below: Interest plan sparks outrage
Ferrante represents the oil and propane heating industries on the committee, so he does come at the topic with a point of view. In a push to cut the state’s greenhouse gas emissions, Mass Save stopped paying for new oil and gas heating systems in 2022. The plan will now only cover weatherization and electric heat pumps.
The problem with that, Ferrante argues, is that the electricity in the New England grid is still mostly generated by power plants burning natural gas.
“So consumers are paying for something that is really not clean yet,” he said.
Others argue that cutting Mass Save is short-sighted.
When asked about rising gas bills last week, Healey defended the Mass Save program but seemed open to considering other ways to fund it.
“I’m happy to have a look at that in terms of how it’s working right now in terms of the money coming in,” she said. “But I would say that Mass Save is not the issue.”
“These programs actually save us money, not just if you take advantage of the program yourself, but by lessening energy use overall,” said Kyle Murray, an environmental lawyer who also serves on the EEAC with Ferrante. “Mass Save has resulted in $31 billion in savings and benefits.”
Murray believes a decision from the state to trim the new Mass Save plan will make it harder for Massachusetts to meet its climate goals. Those goals are rapidly getting steeper, from a 25% reduction in greenhouse gas emissions in 2020 — which the state exceeded by having a 31% drop — to 50% by 2030. The state is aiming for an 80% drop below 1990 emissions by 2050.
Instead, Murray says it may be time to turn up the heat on other drivers of high utility delivery rates. On gas bills, that includes a plan to fix and replace miles of pipes across the state, all while Massachusetts is trying to phase out natural gas.
“It’s certainly a challenge right now,” Murray said. “The Washington situation is going to make it very difficult to hit our climate goals. That doesn’t mean it’s not worthy to still be working on them.”