Press Release  AG Campbell Applauds Changes to Electric Sector Modification Plans That Will Save Ratepayers Money and Improve Electric Grid Resiliency

BOSTON — Massachusetts Attorney General Andrea Joy Campbell, in her role as the state’s ratepayer advocate, issued the following statement in response to the Massachusetts Department of Public Utilities’s (DPU) issuance of an Order adopting many of her recommendations, which will make the inaugural Electric Sector Modernization Plans (ESMPs) more affordable for ratepayers.

“As electric bills continue to skyrocket across the Commonwealth, ratepayers need and deserve relief,” said AG Campbell. “I applaud the DPU for adopting many of my office’s recommendations to protect ratepayers from unnecessary costs while still providing electric companies an avenue to make targeted investments in our electric grid. I am deeply committed to helping our state achieve its clean energy goals at a reasonable cost for Massachusetts ratepayers.”

The ESMP process was established in 2022 following the passage of An Act Driving Clean Energy and Offshore Wind, directing all electric utilities operating in Massachusetts to create strategic plans to invest in their infrastructure to enable the state’s clean energy transition. The ESMPs have five-year terms, with the inaugural term covering July 1, 2025, through June 30, 2030. Each year within the term, the electric utilities will make filings detailing the work completed under their plans. The utilities are allowed to recover costs from ratepayers for work completed under the plans on an annual basis through a charge in electric distribution rates.

In her brief to the DPU, AG Campbell argued that the electric companies proposed ESMPs, which collectively totaled approximately $2.5 billion in spending over the next five years and included premature and speculative infrastructure investments that would lead to higher energy costs for ratepayers. The DPU agreed with AG Campbell’s assessment and adopted many of her recommendations in a June 13 Order, reducing proposed ESMP spending by 66%, more than $1.6 billion. Specifically, the DPU ordered the companies to cover traditional grid infrastructure projects with funds they already recover from ratepayers through their existing electric rates. The DPU also adopted AG Campbell’s recommendations to significantly lower the annual cap on costs companies can collect from ratepayers and to deny them the ability to collect interest on any deferred amounts above the cap.

Through her Energy and Ratepayer Advocacy Division, AG Campbell serves as the statutory ratepayer advocate for the Commonwealth. She remains committed to advancing a cost-effective and equitable clean energy transition, with a strong emphasis on keeping energy affordable and expanding opportunities for underserved communities to participate in state energy proceedings that impact them. 

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