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Healey, lawmakers call on DPU to reduce energy costs after natural gas spike
Colder than normal temperatures, higher natural gas costs, and continued maintenance needs have caused prices to rise.
Gov. Maura Healey and Massachusetts lawmakers are calling on the Department of Public Utilities to address the “skyrocketing energy costs” residents are experiencing this winter.
On Friday, senators from across the state sent a letter to DPU chair James Van Nostrand urging regulators to revisit the approved natural gas rates after customers complained of their recent sky-high bills.
Senators complained about the recently approved rate hikes for National Grid and Eversource, especially since Massachusetts residents saw an “astonishing” 27% hike for the heating season, they noted.
“While energy prices fluctuate, utility companies should not have free rein to impose unpredictable and excessive financial burdens on ratepayers,” the letter said.
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On Sunday, Gov. Healey weighed in, writing to DPU to express her concerns about the recent spike in natural gas utility rates and their financial strain on residents.
“People did not plan for these extraordinary utility rate increases, and they can only do so much to stretch a budget,” Healey wrote. “The DPU must act immediately to provide rate relief to customers in this heating season.”
Healey recognized that energy costs in the state are tied to global oil and gas markets and driven by increased demand and higher usage in cold weather.
However, Healey wrote that even though the DPU cannot control all the causes of the cost increase, it is the department’s responsibility to “help consumers reduce bills and avoid future large, unanticipated price spikes like this.”
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The DPU said it is reviewing the letters from the governor and legislators and will respond soon.
“We have listened to ratepayers, and we will be working directly with the gas companies over the coming days to pursue revisions to their delivery rates to provide relief as soon as possible for their customers,” according to a statement from Alanna Kelly, the spokesperson for the DPU.
The DPU is discussing with the six gas companies to explore how the Local Distribution Adjustment Factor tariffs, or the delivery charge on gas bills, can be revised so that customers do not experience further price volatility.
The gas company charges delivery fees to cover its costs for essential services, such as ensuring the safe provision of gas for heating while meeting legislative mandates. These include the utility’s energy efficiency measures and the cost of delivering rate assistance to income-eligible customers.
Costs related to the Gas System Enhancement Plans are another significant portion of the delivery charge for gas bills. In September, the DPU issued a memo asking gas companies to re-examine the rates.
In addition, the DPU issued an order in Eversource’s gas rates case that prohibits the company from filing another rate case until 2030.
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“Energy affordability is a top priority for us, and we are always willing to work with our regulators, elected officials and other key stakeholders on solutions to make energy more affordable,” Eversource said in a statement.
Eversource spokesman William Hinkle said that the latest increase is due to increased demand for the state’s Mass Save energy efficiency program, the commodity cost of procuring natural gas on behalf of customers, and infrastructure improvements.
In addition, the company is still making investments that the state required after it purchased Columbia Gas in 2020, following the explosions of gas lines in the Lawrence area two years prior.
Hinkle said January was colder than in previous years, prompting increased usage.
“Even if I didn’t do anything different if it is colder outside, the system has to work harder to get to the same setting you set on the thermostat,” Hinkle said.
Additionally, more demand for natural gas heating during the winter means tighter supply and higher costs—the increase in the price of gas rate beginning Feb. 1 increased by 19%. Hinkle said total bills would increase by about 6.3% monthly if usage remained constant.
The governor noted that energy consumers cannot have their utility service shut off during the winter months.
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“Winter isn’t over,” Healey wrote. “The DPU and the gas utilities must act now to provide relief from these high rates and make the changes necessary to ensure that this does not happen again next winter.”
Eversource is hosting two virtual information sessions this Tuesday and Thursday from 1 to 2 p.m. to teach people about its available assistance programs and payment plans.
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