Massachusetts trims gas pipe spending again to help lower bills
Gas companies charge Massachusetts customers nearly $1 billion every year for new gas pipes.
After another expensive winter for gas heating customers in Massachusetts, the state is taking new action to bring down bills. For the second year in a row, regulators are cutting the amount of money gas companies can charge for new pipes.Gas companies charge Massachusetts customers nearly $1 billion every year for new gas pipes, despite the state’s plan to phase out natural gas by 2050. The cost of new gas pipes makes up a growing portion of the surging gas bills, and it comes as gas customers are also forced to help pay for Mass Save rebates to switch customers to electric heat.A lot of the construction spending comes under the Massachusetts Gas System Enhancement Program, or GSEP, which is supposed to focus on the most leak-prone pipes.But the program has grown 300% in the 10 years it’s been around, peaking at $901 million last year.Thursday was the deadline for the state to sign off on the gas companies’ GSEP construction plans for the summer, and for the second year in a row, the Department of Public Utilities trimmed total costs.Gas companies used to be able to spend up to 3% of their total revenues for this work, but that dropped to 2.5% last year and 2% this year. Some believe the state needs to get rid of this program altogether, but state lawmakers would need to act on that. Despite two winters of skyrocketing bills, lawmakers haven’t yet taken action on a lot of the issues.
After another expensive winter for gas heating customers in Massachusetts, the state is taking new action to bring down bills. For the second year in a row, regulators are cutting the amount of money gas companies can charge for new pipes.
Gas companies charge Massachusetts customers nearly $1 billion every year for new gas pipes, despite the state’s plan to phase out natural gas by 2050.
The cost of new gas pipes makes up a growing portion of the surging gas bills, and it comes as gas customers are also forced to help pay for Mass Save rebates to switch customers to electric heat.
A lot of the construction spending comes under the Massachusetts Gas System Enhancement Program, or GSEP, which is supposed to focus on the most leak-prone pipes.
But the program has grown 300% in the 10 years it’s been around, peaking at $901 million last year.
Thursday was the deadline for the state to sign off on the gas companies’ GSEP construction plans for the summer, and for the second year in a row, the Department of Public Utilities trimmed total costs.
Gas companies used to be able to spend up to 3% of their total revenues for this work, but that dropped to 2.5% last year and 2% this year.
Some believe the state needs to get rid of this program altogether, but state lawmakers would need to act on that. Despite two winters of skyrocketing bills, lawmakers haven’t yet taken action on a lot of the issues.