The Massachusetts House Ways and Means Committee seems to be close to advancing the controversial energy House Bill 4744. This would keep Massachusetts dependent on fossil fuels by cutting Mass Save’s budget, subsidizing gas equipment, and opening the door to putting the cost of new gas pipelines on the backs of electricity ratepayers.
In 2024, third-party “competitive” electric suppliers increased residential electric rates by $80.7 million, according to data from the Energy Information Administration and Massachusetts Department of Public Utilities.
We are reporting here a continuation of a pattern in which retail electricity suppliers who sign up individual customers greatly overcharge them compared to what the customers would pay if they received supply service from either their utility (Eversource, National Grid, or Unitil) or their municipal aggregation if it was available.
These companies did this by signing up residential customers, often by promising to lower their electric bill, and then charging their customers an average of 2.1 cents more per kilowatt-hour (kWh) than customers would have paid had they stayed on either their utilities’ basic service rate or their community’s municipal aggregation program (if it had one).
On Monday, those of us who were working to defeat a proposal in the Mass. House of Representatives that would roll back our climate commitments and decimate Mass Save were thrilled to learn that the House decided to postpone action on the bill pending further review by the House Ways and Means Committee.
On Friday, we were disturbed to read in the Commonwealth Beacon that Representative Mark Cusack, Chairman of the Massachusetts House Energy Committee, is contemplating taking two dramatic actions to weaken the state’s fight against climate change.
It is becoming clear that the cost of maintaining and modernizing our electricity grid is going to require large capital expenditures by our local electric utilities. Financing these investments, while keeping electric rates from rising further, is going to be a challenge.
One policy that could help do this, which has already been used across the country, is utility securitization.
Recently, data centers have rapidly become a topic that advocates and policymakers need to reckon with in the clean energy space. Mostly, we’ve seen the data center discussion take place in other parts of the country, where electricity prices are lower and it’s more attractive for data center developers to build. But recently, the discussion arrived in Massachusetts with a discussion of data centers and sales tax exemptions. If you’re a Massachusetts resident, you have an opportunity to make your voice heard until August 25, 2025.
We have an exciting update for Massachusetts households since we last wrote about heat pump rates in July: Starting November 1st, all three investor-owned electric utilities (Unitil, National Grid, and Eversource) will launch new, lower winter electricity rates for homes that heat either partially or fully with heat pumps.
On average, Heat pump users can expect to save around $540 on their heating bills this winter, compared to what they paid in past winters. That’s roughly a 17% discount—a true game changer for clean heating in Massachusetts.
Massachusetts has some great, and sometimes nation-leading, energy programs; the Alternative Energy Portfolio Standard (APS) is not one of them. That’s why we are excited that Governor Healey has proposed phasing out the APS by 2028 as part of H.4144, An Act relative to energy affordability, independence and innovation, which she filed back in May.
Widespread adoption of heat pumps is essential to achieving net-zero emissions by 2050, and the important interim greenhouse gas reduction goals by 2030. However, for many households, high electricity costs remain a barrier to making the switch. To address this, the Massachusetts Department of Public Utilities (DPU) has ordered the state’s three investor-owned utilities (IOU’s - Unitil, National Grid, and Eversource) to introduce seasonal heat pump rates, offering discounted electricity for heat pump users during the winter months, a concept Maine has already implemented.
From time to time, we report on how municipal aggregation is going in Massachusetts – and soon, Rhode Island. It’s that time again. For about 90% of the customers in each state, consumers have three choices for their electricity supply – the utility’s Basic Service, municipal aggregation if their community has adopted that model, or retail service from a (often predatory and greenwashing) competitive electricity provider. All of these customers receive delivery service (poles, wires, metering, billing) from regulated investor-owned utilities; the difference lies in the electricity supply. The remaining 10% of customers receive power supply from municipal utilities.
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Larry Chretien
andMikaela Hondros-McCarthy
