Recent Actions
On April 8, 2026, DOER filed a petition with the Massachusetts Department of Public Utilities (DPU) requesting that the DPU open an investigation on time-varying rates for all electric distribution companies. To support its request, DOER prepared the following recommendations, report, and data analysis below, in addition to filing further materials with the DPU.
Final Time-of-Use Rate Proposal
Stakeholder Process & Engagement Report
Massachusetts Energy Load and Price Analysis
Introduction
The Department of Energy Resources (DOER) convened the Rate Task Force in early 2025, following the IRWG’s Long-Term Recommendations on rate design and ratemaking. Following the Task Force discussion and process, DOER released a Ratemaking Straw Proposal with the opportunity for Task Force participants to share comments in response to the rates design and ratemaking recommendations.
Ratemaking Straw Proposal
Comments on DOER's Ratemaking Straw Proposal
The Rate Task Force held its discussions in two phases. Phase one focused on rate design. Phase two focused on the regulatory framework and mechanisms used in Massachusetts. The Rate Task Force provided two different engagement opportunities for participants. DOER hosted local and national experts to present on the relevant topics and then held targeted conversations about related policy questions and priorities.
The Rate Task Force helped to:
- Build technical knowledge by providing learning opportunities for stakeholders. This includes stakeholders who have not worked on electric rate design or ratemaking issues;
- Develop shared understanding by learning about and discussing the challenges and priorities;
- Have open, inclusive dialogue about complex ratemaking and regulatory issues;
- 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.
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.
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.
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.
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.
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 topics through expert presentations and targeted conversations, which follow.