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The Massachusetts State Senate is taking steps towards passing a very comprehensive energy bill before the holiday. As you remember, the House passed its energy bill back in February. The Senate Ways and Means Committee drafted the bill, and it is expected to be voted on by the full Senate on July 1. Overall, the bill is excellent insofar as it would make energy more affordable without backsliding on clean energy programs. There will be amendments filed to alter the committee's draft, but the starting point is solid. We do not endorse every provision in the bill, but there are major provisions that we enthusiastically support.
No Budget Cut For Mass Save
That's the biggest news right there. The House voted to cut one billion from Mass Save. The Senate is proposing no cut to the budget. Mass Save is one of the fundamental tools we have to build a just transition from fossil fuels to clean energy.
Cutting Gas Utility Spending
The Senate bill would phase out the Gas System Enhancement Program (GSEP), a program that has increased utility spending and driven up the price of gas in recent years. While GSEP was made with good intentions (reducing gas leaks), it led to reckless spending by the utilities, and we are glad to see that this bill orders the Mass. Department of Public Utilities to wind it down.
Securitization
As we have written about before, securitization is a process in which utility spending is moved off of a utility’s books and financed with low-interest bonds. If done with the right safeguards, the upshot of this is to take profits away from utility shareholders and give them to customers in the form of lower bills. We are glad to see that this bill would allow the Department of Public Utilities to use this tool to save people money.
Third-Party Supplier Regulation
The Senate bill contains language largely similar to the House’s on third-party suppliers, which would better regulate companies that have used predatory tactics to overcharge customers in Massachusetts for years. Among other things, this language would give towns the ability to ban suppliers within their borders, crack down on manipulative marketing, and allow the Department of Public Utilities to fix the purchase of receivables system.
While in the past the Senate has voted to ban third-party suppliers, we are glad to see them pass language similar to the House because doing so reduces the chance these massive wins for consumer protection could be lost during conference committee.
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The illustration above was created by Becca Miller, our Program Associate.
Clean Energy Procurement
In order to finance large clean energy projects, like offshore wind farms, developers need the stability that comes from long-term contracts. In recent years, the legislature has authorized several clean energy procurements, allowing the state, through the electric utilities, to enter into those long-term contracts. The Senate bill would give the Department of Energy Resources more authority to run the procurements, hopefully speeding up the process and getting the Commonwealth the clean energy it needs.
Here Comes The Sun
The Senate bill contains several pro-solar policies, such as provisions to automate permitting and the legalization of small plug-in-solar (also known as balcony solar). We will soon be making an announcement about our plans to roll out a plug-in solar program.
What Happens Next?
Now that the bill is out, senators have the chance to file amendments until Friday, ahead of the bill being voted on July 1st. This means now is the best time to reach out to your senator and tell them what you want to see added or removed from the bill.
Please take three minutes to find your senator’s phone number here and give them a call.
You could say something like:
“Hello, my name is [NAME], and I live in [TOWN]. I hope you will support the Senate Energy Bill and work to keep in the sections that would reduce gas utility overspending, regulate third-party electric suppliers, and promote clean energy. I am also asking you to oppose any amendment that would cut Mass Save’s budget. Thank you.”
The next few days will be busy, and we will likely reach out to you for support on specific amendments once they are filed. Look out for that. We will be playing some “offense” in support of amendments that would improve the bill and some “defense” in opposition to amendments that would make the bill worse.
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