Business

Mass. DPU orders gas companies to lower rates by 5%.

The call comes after customers received sky-high bills this winter.

Gas meters in Medford. Photo by Pat Greenhouse the Boston Globe

February 21, 2025

2 minutes to read

The Department of Public Utilities is demanding that the state’s five gas companies cut residential gas bills by 5% starting next month.

In a letter on Thursday, the DPU requested that the gas companies, including Eversource and National Grid, begin reducing residential customers’ bills in March and April. However, the department said it could not direct the companies to reduce delivery charges in February bills.

The demand to lower costs comes as “the combination of increased supply costs, the recovery of unusually high programmatic costs through delivery charges, and a cold winter has driven customer bills to unstainable levels,” the letter said.

“These circumstances warrant immediate measures to provide relief to consumers,” it continued.

The charge to reduce bills comes after Gov. Maura Healey and lawmakers called on the department last week to address the “skyrocketing energy costs” residents are experiencing this winter.

Senators complained about the recently approved rate hikes for National Grid and Eversource, especially since residents reportedly saw a 27% hike for the heating season.

In response, the DPU asked the gas companies to file revised proposals by Monday to reduce the gas adjustment factor.

The gas adjustment factor, also known as the supply portion of a bill, covers the cost of purchasing and transporting natural gas by the companies.

The DPU said any deferred costs can be collected through the adjustment factor during the off-peak season (May through October).

The department is considering permanently shifting certain delivery costs from the peak to shoulder and summer seasons.

The DPU does not regulate gas prices and states that gas companies do not profit from gas purchased for customers. The department asserts that ratepayers pay market costs.

However, the DPU said it still intends to review costs related to the Gas System Enhancement Plans, a portion of the delivery charge, so that companies can further reduce gas bills while ensuring the safe delivery of gas pipeline operations.

“Given the unprecedented combination of circumstances in effect this winter – weather-driven high usage, lingering customer sensitivity to recent high inflation, and exceptionally high, program-driven delivery expenses – a limit to carrying charges is appropriate,” the letter said.

In a statement, National Grid said it is working with the DPU to reduce residential rates throughout the winter.

“National Grid is committed to delivering affordable, reliable energy to Massachusetts customers and recognizes rising costs are a challenge for families and businesses,” the company said.

National Grid said that anyone struggling to pay their bill should visit the company’s website for resources and assistance programs.

Eversource, in a statement, said it, too, is keeping “affordability top-of-mind” as it continues to transition to clean energy cost-effectively.

“Energy affordability is always a top priority for us, and any rate relief is always positive – especially in light of the higher-than-normal gas bill customers have been receiving this winter,” the company said in a statement.