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Massachusetts utility regulators are partially denying a rate hike requested by one of the state’s largest gas companies, potentially saving customers millions in heating costs — for now.
On Wednesday, the Department of Public Utilities (DPU) issued an order stating that Eversource has failed to meet three out of 18 performance metrics set in 2020, which are tied to safety and reliability, customer satisfaction, and emissions reductions.
“As a result of this decision, $45 million will not be added to the Company’s revenue requirement at this time, resulting in lower rates for customers,” regulators wrote in the Oct. 29 order, just days before the 2025-2026 winter heating season begins on Nov. 1.
Eversource had requested a significant increase for approximately 300,000 NSTAR division customers — between 13% and 17% — in delivery and supply rates for natural gas, effective this winter. It wasn’t clear exactly how much customers would save due to the DPU’s decision. However, under Eversource’s original request, customers could have seen their bills rise by an average of around $41 per month, depending on the severity of the 2025-2026 winter season.
The utility company says the higher rates are needed to cover the rising cost of gas supply, infrastructure, and maintenance expenses, as well as programs that help customers and improve reliability.
State officials also pushed back against gas-heating rate increases. Last month, Gov. Maura Healey called the proposed hikes “outrageous” and said the increases are unaffordable for many Massachusetts households.
In response to Wednesday’s DPU ruling, Healey said, “Massachusetts families cannot afford more winter bill increases. This is a start, but more work must be done to lower costs.”
However, Eversource said that the move could lead to higher long-term costs for its NSTAR division customers, as the company will likely pursue a full rate hike rather than a smaller yearly price increase.
“Eversource’s ability to refrain from filing a full rate case with much larger impacts on customers was contingent upon receiving these smaller annual adjustments,” Eversource spokesperson Olessa Stepanova said in a statement. “We are closely reviewing the department’s order to determine next steps.”
Morgan Rousseau is a freelance writer for Boston.com, where she reports on a variety of local and regional news.
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