As local energy costs skyrocket, the state’s Department of Public Utilities has launched an investigation into all delivery charges on electric and gas utility bills.
The review comes as electricity and natural gas costs have risen more rapidly than inflation, resulting in economic hardship for many in Massachusetts.
The investigation will explore ways to contain energy costs that fall under DPU’s jurisdiction. DPU will evaluate whether certain charges should be eliminated, consolidated, or redesigned as a fixed charge.
Officials will also review whether to establish maximum limits on how much charges can increase from month to month.
“This thorough investigation will shed new light on ratemaking for the public,” DPU Chair Jeremy McDiarmid said in a statement.
“We’re eager to continue the momentum built this year to help keep bills in check and put utility customers first,” the chair added.
This investigation also comes as Gov. Maura Healey has deflected blame for the sky-high energy bills. Healey has bragged about blocking gas pipelines when she was attorney general.
Included in gas and electric utility bills are the supply rate and components that make up the delivery portion of bills.
The delivery portion includes a fixed customer charge, the base distribution rate, and rates that allow utilities to recover costs required by state and federal policies, and costs necessary to maintain safe and reliable infrastructure.
The first phase of DPU’s investigation will be a complete review of all components on the delivery portion of both electric and gas utility bills.
This investigation will explore rate designs that reduce bill volatility, and make it easier for consumers to understand the different components of their bill and what contributes to bill changes.
Officials will also review net metering charges, with the goal of identifying near-term cost controls for electric utility customers.
The second phase of the investigation will look into utility bill design — increasing transparency for ratepayers when they receive their bills and creating more consistency across companies.
“I came to the DPU with the intent to better protect ratepayers and help manage energy costs,” said Commissioner Liz Anderson. “As the commissioner leading this investigation, I look forward to tackling these critical issues head-on and working to make a difference for ratepayers across Massachusetts.”
DPU said this investigation follows a series of actions that the agency has taken to address energy affordability this year: Reducing the budget of the current Mass Save 3 Year Plan; requiring immediate mitigation measures for last winter’s gas bills; strengthening cost controls in the Gas System Enhancement Plan programs; and establishing and implementing new electric rates to reduce winter costs for residents using heat pumps.
“This investigation illustrates our commitment to a more transparent, equitable, and innovative DPU,” said Commissioner Staci Rubin. “Energy affordability will always be a core part of our mission. The investigation we opened today will work to assist customers across the state and make bills more transparent and understandable.”
Also, following the severe billing errors customers experienced this year, DPU plans to examine utility billing practices and utilities’ performance in providing their customers with accurate, transparent, and timely bills. This investigation will start in the coming months.