“Our administration cut taxes and is working to lower costs on every front – from housing to child care to energy. Massachusetts families and businesses can’t afford big energy price spikes now, or in the future. This bill – along with our energy affordability agenda – will get costs off bills, save people money, and adopt an all of the above strategy to bring new energy into Massachusetts.”
Getting Costs Off Bills
The administration is proposing to eliminate or significantly reduce charges on the bill. Let’s crack down on unnecessary spending, make existing programs more efficient and phase out programs that aren’t needed anymore.
Massachusetts has the highest net metering compensation rates for large, standalone facilities in the country. Reducing the value of net metering credits for new large net metering facilities will lead to a lower net metering surcharge, saving customers an estimated $380 million over 10 years.
The legislation would also phase out the Alternative Portfolio Standard charge, which costs ratepayers up to $60 million per year and set to increase.
The legislation would allow utilities to finance Mass Save and other programs through securitization.
To reduce bill volatility and rate shocks, the legislation also requires the DPU to review and reform all charges on bills and establish of a cap on month-to-month bill increases.
Bring More Energy Into Massachusetts
This legislation continues the Governor’s all-of-the-above strategy to bring more energy into Massachusetts, drive down costs, and meet rising demand.
The bill allows Massachusetts to explore cutting edge nuclear technologies and expands the state’s authority to procure energy.
Giving the state authority to procure energy directly would eliminate the fees the state is currently required to pay the utilities for entering into the same contracts, which will allow customers to get the best price and save ratepayers billions of dollars over the life of the contracts.
The legislation would also require the utilities to update their interconnection process to reduce the time and cost for customers to connect their solar projects to the grid.
Governor Healey also proposes to provide the DPU and electric utilities more flexibility in how electric power supply is purchased and prices are set by eliminating the requirement that forces utilities to buy electricity every six months, regardless of current market conditions, avoiding price hikes.
Supporting the Customer
The legislation empowers customers to control their energy future.
Governor Healey is putting forward a compromise proposal that will significantly rein in the unscrupulous competitive supply industry by barring the most predatory marketing practices, eliminating automatic renewals and variable rate contracts, establishing new licensing requirements for door-to-door and telemarketing firms, and strengthening oversight.
The legislation will also authorize gas companies to own and operate geothermal heat loops to support universities, hospitals, and other large building owners access the most efficient heating and cooling technology available – while insulating other ratepayers from bearing any associated costs.
Governor Healey’s bill will prohibit utility shutoffs during periods of heat waves due to financial hardship. The bill would also expand the moderate-income discount rate to gas customers, which will help hard-working people and families pay their heating bills.
Additionally, the Governor’s proposal would authorize the utilities to establish programs that allow individual customers to finance clean heating, weatherization and other home upgrades through their bills over time, reducing the need for up-front incentives paid for through utility rates.
Powering Innovation & Smart Growth
The Healey-Driscoll Administration is working to maximize the electric grid.
“Energy Ready Zones” will lay the groundwork for new homes and businesses to tap into the electric grid and other utilities at no cost to ratepayers.
Creating Accountability
Customers should only be charged for legitimate costs associated delivering power to their homes and businesses.
The legislation will authorize the DPU or an outside firm to audit the utilities to provide greater transparency into management and operations.
Governor Healey’s proposal also explicitly bans the use of ratepayer funds for advertising, lobbying, entertainment, and other costs. This legislation would also empower the DPU to fine the utilities for non-compliance.
Transmission costs are driving an increase in delivery charges. The bill will provide new oversight authority to the Energy Facilities Siting Board to ensure that transmission projects are properly sited and permitted and do not result in unnecessary costs being passed onto ratepayers.