National Grid

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.”