2 biggest Mass. utilities back off plan to charge customers interest on bill reductions

After outcry from customers, the two largest utilities in Massachusetts have backed off a plan to charge customers interest on the money they defer from winter gas and electric bills over the next two months. Massachusetts Gov. Maura Healey had requested the state’s utilities shave customer bills by 10% in February and March amidst a second winter of sky-high heating charges and was frustrated that the companies had planned to collect interest.The gas and electric companies will be permitted to collect the 10% bill reduction back starting in April, when heating costs typically drop. An additional 15% reduction on electric bills will be paid for with $180 million in existing state funds and will not need to be paid back.National Grid and Eversource, the state’s largest gas and electric companies, said Wednesday they would forego all interest on the bill reductions. Initially, the companies had said they would forgive two months’ of interest but had planned to collect the remaining deferred charges with interest up to the prime rate of 6.75%.”Eversource will voluntarily forego all carrying or interest costs related to all upcoming bill reductions,” an Eversource spokesman said in a statement. “With the extreme cold temperatures expected to persist creating the potential for even higher usage, this is the appropriate step to take in support of customers.”“National Grid is providing targeted winter bill relief in collaboration with the Healey‑Driscoll Administration and will not collect carrying charges tied to this deferral,” a National Grid spokesman said. “We remain committed to long‑term solutions that reduce volatility, improve transparency in what drives costs, and ensure safe, reliable service.”Berkshire Gas and Unitil followed suit late Wednesday.The governor said she called the utilities and asked them to remove those added charges for customers.”I was surprised when they came forward and said they were going to add this bit of carrying costs and interest,” Healey said. “I have demanded that they remove those costs.”Numerous customers told NewsCenter 5 they’d prefer to opt out of the 10% bill reductions if it means they’ll end up paying more money in the end. There is no mechanism for customers to opt out of the bill deferrals.State lawmakers, who are also under fire for failing to take action on the state’s high energy costs, took notice of the plans by the utilities to collect interest and some plan to collectively object.”As state legislators, we write in strong opposition to the proposal from investor-owned corporate utilities, including Eversource, National Grid, and Unitil, to impose ‘carrying-costs’ — otherwise known as interest payments,” said a letter to DPU commissioners being circulated amongst lawmakers on Beacon Hill by Cambridge Rep. Mike Connolly. “We are deeply concerned about the impact and burden of out-of-control gas and electric utility bills for our constituents, and we ask that you do everything within your power to hold these investor-owned, corporate utilities accountable.” Massachusetts utilities filed their bill deferral plans with the Department of Public Utilities this week, which must approve the 10% reductions on an expedited timetable for them to begin by Feb. 1. At the time the plans were filed with DPU, only Liberty Utilities, one of the state’s smaller gas companies, was not planning to collect interest. Eversource, National Grid, Berkshire Gas and Unitil now join them, adding more than 2.9 million electric customers and 1.5 million gas customers who won’t end up paying more in the end for temporary bill reductions. Customers impacted by these temporary bill reductions had until Wednesday at 5 p.m. to submit comments to DPU by email ahead of their decision. More than 1,000 people wrote in before the deadline.