Massachusetts โGovernor Challenges Proposed โฃGas Rate โขHikes Amidst Winterโฃ Cost Concerns
BOSTON – Massachusetts Governor Maura โฃHealeyโ is challenging โฃgasโ companiesโค overโข proposed rate increases slated for this winter, โฃfollowing โคa year that โsaw record-high heating billsโ for many residents. the utility proposals come on the heels of significant rate hikes implemented last year, which, combined with unusually cold weather,โ resulted in unprecedented monthly heating costs for customersโ 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 โanticipates aโ 13% increase in the price โคof gas itself, effectively negating the โdelivery rate reduction and โฃleaving overall โbillsโข comparable to last winter’s peak.
Eversource customers face a potentially steeper increase. The company has requestedโ approval from the Massachusetts Department of Public Utilities (DPU) to raise rates by at least 13%,โ with some customers potentially seeing bills increase by asโ muchโ as 17%.
“These rate โhikes are outrageous,” Governor Healey stated, โขurging theโ DPU to thoroughly review and resist Eversource’s proposal. “We need to lower costs for families and โคbusinesses, especiallyโ as we head into winter.”
the โฃDPU has confirmed it is indeed activelyโ reviewing theโ rate filings. Governorโค Healey will have fully appointed the three โDPU commissioners by the โคend of โคSeptember, and these โcommissioners will beโ responsible for approving or rejecting the rate requests by November 1st.
The state has alreadyโ takenโ steps to โคmitigate rising โฃcosts, including โคreducing customer contributions to the mass Save energy efficiency program, a critically โคimportant driver of โdelivery costs. Though, the increasing cost โof the gas supply itself continues to fuel the debate over long-term solutions for New England’s energyโข needs.
Thisโ situation has โreignited the discussion surrounding the potential need for a new โขnatural gas pipeline from โคpennsylvania’s abundant gas fields.New England relies heavily on natural gas for bothโ heating andโข electricity generation. While the region’s main pipeline is currently undergoingโ expansion – a project supported by Governor Healey โค- theโ 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 โฃcommitment, Eversource Senior Vice President doug Horton acknowledged the region’sโฃ supply constraints. He stated that reliance on liquified natural โgas (LNG)โ can be expensive and vulnerable to global events, impacting New England’sโค energyโ costs. He affirmedโ that access to locally-sourced supply could benefit customers.
However,โ 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 โฃdemand โขdays. โฃ”the issue that we have in New Englandโข is that, for a few daysโ a โคyear, prices are โคhigh – maybe sevenโ days,” sheโข said. “You don’t buildโ a gigantic pipeline for seven days a year.”
