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Natural gas regulation

How natural gas is regulated in Massachusetts

Responsibilities of the DPU's Gas Division

The mission of the Department of Public Utilities' Gas Division is to ensure that the seven gas companies in Massachusetts provide their customers with the most reliable natural gas at the lowest possible cost.

The regulation of the natural gas industry in Massachusetts requires the Gas Division to, among others, review forecast and supply plan filings, long-term supply contracts, numerous non-tariffed contracts for the sale and transportation of natural gas, energy efficiency programs as well as all Cost of Gas Adjustment filings that determine the rates customers are charged for the gas commodity. In addition, the Gas Division monitors the market at the regional and national level to ensure that the Massachusetts consumers continue to receive the economic and environmental benefits that natural gas has to offer.

Finally, the Gas Division is in charge of ensuring that the natural gas market in Massachusetts remains competitive at the retail level.

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Rates and Charges

Your monthly bill is broken into two main charges:

  • Delivery (or Distribution): The cost to deliver ‚Äčnatural gas to your home or business. The delivery rates are approved by the DPU during your company's last Rate Case Filing, which occurs at least every 10 years.  You can check your company's approved Rate and Tariffs for a list of current delivery rates.
  • Supply: The cost to purchase and transport natural gas to Massachusetts. Your gas company pays to purchase gas on your behalf at the current market price and passes the cost onto customers. The supply rate, also known as the Cost of Gas Adjustment Factor, is approved by the DPU at least twice a year, for the summer and winter periods.

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