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:
- 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.
Topic 1: Ratemaking and Utilities
Topic 2: Tools of Utility Regulation
Topic 3: Multi-Year and Formula-Based Rates
Topic 4: Decoupling and Capital Recovery
- Expert Presentations, October 22, 2025
- Targeted Conversation, October 27, 2025
Topic 5: Performance Mechanisms
- Expert Presentations, November 10, 2025
- Targeted Conversation, November 19, 2025