Massachusetts Electric Rate Task Force

The Massachusetts Electric Rate Task Force (Rate Task Force) includes diverse stakeholders. The group will help electric rate design and regulatory processes lead to an affordable, equitable, and decarbonized energy future.

The Interagency Rates Working Group (IRWG) was created to recommend changes to electricity rates and regulatory approaches that can make energy more affordable. The IRWG’s recommendations included support for heat pump rates offered by each utility. The IRWG also recommended further stakeholder discussions about other  changes to electric rates and regulatory approaches. DOER started the Task Force to have these discussions.

Introduction

The Department of Energy Resources (DOER) set up the Rate Task Force in early 2025.The IRWG’s Long-Term Recommendations  are the starting point for the Task Force’s discussions on rate design and ratemaking.

The Rate Task Force will hold its discussions in two phases. Phase one will focus on rate design. Phase two will focus on the regulatory framework and mechanisms used in Massachusetts. The Rate Task Force offers two different engagement opportunities for participants.  DOER will first host local and national experts to present on the relevant topics. DOER will then hold targeted conversations about policy questions and priorities.

Purpose

Through November 2025, the Rate Task Force will:

1. Build technical knowledge by providing learning opportunities for stakeholders. This includes stakeholders who have not worked on electric rate design or ratemaking issues;
2. Develop shared understanding by learning about and discussing the challenges and priorities;
3. Have open, inclusive dialogue about complex ratemaking and regulatory issues;
4. Discuss questions and opportunities to empower stakeholders to achieve the Task Force’s goals

Phase 1: Rate Design

The IRWG explored rate designs that would provide more cost-reflective price signals, and enable customers to lower their utility bills by managing when and how much electricity they use. Phase 1 explored the following topics through expert presentations and targeted conversations, which follow.

Topic 1: Time of Use Rate Design

The IRWG recommended a time of use rate design. Massachusetts’ electric distribution companies (EDCs) could offer opt-out seasonal residential time-of-use (TOU) rates for residential consumers. The TOU rates should vary energy supply, transmission service, and distribution service charges.

• Expert Presentations, May 19, 2025 (Presentation forthcoming)
• Targeted Conversation, May 28, 2025 (Presentation forthcoming)

Topic 2: Alternative Rate Designs

The IRWG recommended that the Massachusetts EDCs look into alternative rate designs. These include an opt-in residential critical peak pricing rate and other advanced rate designs. Advanced rate designs should happen after customers have advanced metering infrastructure (AMI). These rate designs should be available to residential consumers and businesses.

• Expert Presentations, June 9, 2025 (Presentation forthcoming)
• Targeted Conversation, Jun 18, 2025 (Presentation forthcoming)

Topic 3: Bill and Distributed Energy Resources Impacts

The IRWG recommended the EDCs prepare more detailed rate impact analysis. Analysis should consider energy cost impacts on a variety of Massachusetts households. Households should include those who use (or will use) distributed generation (DG) and distributed energy resources (DER). This topic also explored the interaction and impacts of TOU rates on other initiatives that promote DG and DER.

• Expert Presentations, June 30, 2025 (Presentation forthcoming)
• Targeted Conversation, July 9, 2025 (Presentation forthcoming)

Topic 4: Implementation and Protections

The IRWG recommended the EDCs use customer bill protections to avoid any consequences from shifting to opt-out TOU rates. This topic also explored the necessary steps, opportunities, and challenges to put TOU rates in place.

• Expert Presentations, July 21, 2025 (Presentation forthcoming)
• Targeted Conversation, July 30, 2025 (Presentation forthcoming)

Topic 5: Marketing, Education, and Outreach

The IRWG recommended the EDCs offer a marketing, education, and outreach plan with any TOU rate design proposals. The plan should improve the clarity and convenience of customer experiences with TOU rates.

• Expert Presentations, August 4, 2025 (Presentation forthcoming)
• Targeted Conversation, August 13, 2025 (Presentation forthcoming)

Phase 2: Ratemaking and Regulatory Mechanisms

The IRWG explored several ways to focus on affordability, equity, and emissions reductions, along with safety and reliability. Phase 2 will explore the following key topics:

Topic 1: Ratemaking and Utilities

• Expert Presentations, August 25, 2025 (Presentation forthcoming)
• Targeted Conversation, September 3, 2025 (Presentation forthcoming)

Topic 2: Tools of Utility Regulation

• Expert Presentations, September 8, 2025 (Presentation forthcoming)
• Targeted Conversation, September 17, 2025 (Presentation forthcoming)

Topic 3: Multi-Year and Formula-Based Rates

• Expert Presentations, September 29, 2025 (Presentation forthcoming)
• Targeted Conversation, October 8, 2025 (Presentation forthcoming)

Topic 4: Decoupling and Capital Recovery

• Expert Presentations, October 22, 2025 (Presentation forthcoming)
• Targeted Conversation, October 27, 2025 (Presentation forthcoming)

Topic 5: Performance Mechanisms

• Expert Presentations, November 10, 2025 (Presentation forthcoming)
• Targeted Conversation, November 19, 2025 (Presentation forthcoming)