Gov. Healey says energy bill would cut bills, audit utilities, explore nuclear
Massachusetts Gov. Maura Healey said Tuesday that her latest legislative proposal could simplify and cut energy bills for residents and businesses. Healey’s proposal is the second stage of an “energy affordability agenda” that she launched in March following customer outrage about skyrocketing energy bills during the winter months. The Healey administration said its initial efforts could save customers nearly $6 billion over five years.If enacted, the administration said the Energy Affordability, Independence & Innovation Act would bring down costs for ratepayers, saving an estimated $10 billion more over the next decade. The governor’s office said her new legislative proposal would reduce or eliminate certain charges on bills, including a plan to phase out the $60 million per year Alternative Portfolio Standard charge and a reduction to the net metering surcharge that’s worth an estimated $380 million over 10 years. Healey said her bill would also limit costs that utilities can pass on to ratepayers, authorize outside auditing of utilities, ban the use of ratepayer funds for advertising and reduce barriers to new nuclear energy technologies. “Massachusetts families and businesses can’t afford big energy price spikes now, or in the future. This bill – along with our energy affordability agenda – gets costs off bills, saves people money, and adopts an all of the above strategy to bring new energy into Massachusetts,” Healey said in a statement. “Our comprehensive proposal addresses head-on some of the biggest drivers of price spikes,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “This legislation tackles Massachusetts’ lack of homegrown energy, big charges on bills and an absence of oversight of costly grid upgrades. We’re reining in those costs while still growing our economy and spurring new development across the state.”Healey said her legislation also incorporates a “compromise proposal” to end predatory marketing practices. It would eliminate automatic renewals and variable rate contracts. Meanwhile, it would allow the utilities to establish programs to help finance clean heating, weatherization and other home upgrades through utility bills. The administration said this would reduce the need for up-front incentives, which are financed through utility rates. Also included in the proposal is authorization for gas companies to own and operate geothermal heat loops, a technology that Eversource is testing in Framingham. State-mandated programs, of which Mass Save is the largest, are among the primary reasons gas and electric delivery rates have risen sharply since 2023. A NewsCenter 5 analysis found that electricity delivery rates have risen in excess of 30%. Gas delivery rates are up even more, rising as much as 38% in the same two-year period.Earlier this year, the Department of Public Utilities rejected the size of the proposed Mass Save plan, telling the utilities their customers could not afford the costs. The original plan to grow the program by 25% to $5 billion will go back to the drawing board with a $4.5 billion price tag.
Massachusetts Gov. Maura Healey said Tuesday that her latest legislative proposal could simplify and cut energy bills for residents and businesses.
Healey’s proposal is the second stage of an “energy affordability agenda” that she launched in March following customer outrage about skyrocketing energy bills during the winter months. The Healey administration said its initial efforts could save customers nearly $6 billion over five years.
If enacted, the administration said the Energy Affordability, Independence & Innovation Act would bring down costs for ratepayers, saving an estimated $10 billion more over the next decade.
The governor’s office said her new legislative proposal would reduce or eliminate certain charges on bills, including a plan to phase out the $60 million per year Alternative Portfolio Standard charge and a reduction to the net metering surcharge that’s worth an estimated $380 million over 10 years. Healey said her bill would also limit costs that utilities can pass on to ratepayers, authorize outside auditing of utilities, ban the use of ratepayer funds for advertising and reduce barriers to new nuclear energy technologies.
“Massachusetts families and businesses can’t afford big energy price spikes now, or in the future. This bill – along with our energy affordability agenda – gets costs off bills, saves people money, and adopts an all of the above strategy to bring new energy into Massachusetts,” Healey said in a statement.
“Our comprehensive proposal addresses head-on some of the biggest drivers of price spikes,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “This legislation tackles Massachusetts’ lack of homegrown energy, big charges on bills and an absence of oversight of costly grid upgrades. We’re reining in those costs while still growing our economy and spurring new development across the state.”
Healey said her legislation also incorporates a “compromise proposal” to end predatory marketing practices. It would eliminate automatic renewals and variable rate contracts.
Meanwhile, it would allow the utilities to establish programs to help finance clean heating, weatherization and other home upgrades through utility bills. The administration said this would reduce the need for up-front incentives, which are financed through utility rates.
Also included in the proposal is authorization for gas companies to own and operate geothermal heat loops, a technology that Eversource is testing in Framingham.
State-mandated programs, of which Mass Save is the largest, are among the primary reasons gas and electric delivery rates have risen sharply since 2023. A NewsCenter 5 analysis found that electricity delivery rates have risen in excess of 30%. Gas delivery rates are up even more, rising as much as 38% in the same two-year period.
Earlier this year, the Department of Public Utilities rejected the size of the proposed Mass Save plan, telling the utilities their customers could not afford the costs. The original plan to grow the program by 25% to $5 billion will go back to the drawing board with a $4.5 billion price tag.