Massachusetts Attorney General Andrea Joy Campbell has forced Eversource to return $45 million to customers, ending a yearslong fight over disputed charges and merger-related costs.
A settlement agreement approved by the Department of Public Utilities closes 16 dockets dating back to 2011 involving vegetation-management expenses, pension-related cost allocations, and charges tied to Eversource’s 2020 acquisition of Columbia Gas of Massachusetts.
NSTAR Electric customers are slated to receive roughly $20 million in credits beginning Jan. 1, 2026, while customers of Eversource Gas of Massachusetts are projected to see more than $25 million in annual savings once rates are reset following the Columbia Gas integration.
The attorney general’s office said its review found irregularities in thousands of NSTAR tree-work invoices and raised concerns about how the utility allocated pension and post-retirement costs to ratepayers.
The settlement also restructures how costs from the Columbia Gas purchase are treated, allowing Eversource to recover certain expenses but requiring that operating efficiencies realized since the merger flow back to customers.
“I am committed to protecting ratepayers from unnecessary costs and ensuring that more money stays in consumers’ pockets — especially as winter heating bills continue to rise,” Campbell said. “Affordability and consumer protection are at the forefront of our work, and I applaud the DPU for their role in ensuring that Massachusetts ratepayers are not unfairly burdened by high utility bills.”
The action comes as business and residential customers struggle with rising energy costs.
In recent months, the DPU has pushed back on utility requests, including its decision last month to block most of Eversource’s proposed 13% winter gas rate increase for its NSTAR territory, citing the company’s failure to meet performance standards. That ruling is expected to save customers tens of millions of dollars this heating season.
State officials have warned for months that winter energy costs are likely to climb due to volatile natural gas markets and ongoing infrastructure spending by utilities.
Energy affordability proposals have sparked debate at the State House, including a look at costs associated with clean energy programs. So far, an affordability bill has yet to surface in either branch.
Rate changes connected to the agreement will roll out over the next few years as the remaining rate cases are settled.