Massachusetts Governor Challenges Proposed Gas Rate Hikes Amidst Winter Cost Concerns
BOSTON – Massachusetts Governor Maura Healey is challenging gas companies over proposed rate increases slated for this winter, following a year that saw record-high heating bills for many residents. the utility proposals come on the heels of significant rate hikes implemented last year, which, combined with unusually cold weather, resulted in unprecedented monthly heating costs for customers across the state.
National Grid is proposing a slight decrease in gas delivery rates – between 8% and 9% depending on the service area – however, the company anticipates a 13% increase in the price of gas itself, effectively negating the delivery rate reduction and leaving overall bills comparable to last winter’s peak.
Eversource customers face a potentially steeper increase. The company has requested approval from the Massachusetts Department of Public Utilities (DPU) to raise rates by at least 13%, with some customers potentially seeing bills increase by as much as 17%.
“These rate hikes are outrageous,” Governor Healey stated, urging the DPU to thoroughly review and resist Eversource’s proposal. “We need to lower costs for families and businesses, especially as we head into winter.”
the DPU has confirmed it is indeed actively reviewing the rate filings. Governor Healey will have fully appointed the three DPU commissioners by the end of September, and these commissioners will be responsible for approving or rejecting the rate requests by November 1st.
The state has already taken steps to mitigate rising costs, including reducing customer contributions to the mass Save energy efficiency program, a critically important driver of delivery costs. Though, the increasing cost of the gas supply itself continues to fuel the debate over long-term solutions for New England’s energy needs.
This situation has reignited the discussion surrounding the potential need for a new natural gas pipeline from pennsylvania’s abundant gas fields.New England relies heavily on natural gas for both heating and electricity generation. While the region’s main pipeline is currently undergoing expansion – a project supported by Governor Healey - the increased capacity won’t be available for several years.
Eversource has already secured contracts to purchase nearly half of the expanded pipeline’s capacity. When questioned about this commitment, Eversource Senior Vice President doug Horton acknowledged the region’s supply constraints. He stated that reliance on liquified natural gas (LNG) can be expensive and vulnerable to global events, impacting New England’s energy costs. He affirmed that access to locally-sourced supply could benefit customers.
However, the Healey Administration remains opposed to building a new pipeline.When pressed on the issue last winter, Massachusetts Energy Secretary Rebecca tepper argued that the need for additional pipeline capacity is limited to a small number of peak demand days. ”the issue that we have in New England is that, for a few days a year, prices are high – maybe seven days,” she said. “You don’t build a gigantic pipeline for seven days a year.”
