Regulators Focus on Energy Affordability at NECPUC Symposium

MYSTIC, Conn. — Government officials and industry executives discussed how to mitigate rising energy costs in New England at the 77th annual New England Conference of Public Utility Commissioners Symposium May 19 and 20.

Jamie Dickerson, senior director of clean energy and climate programs at the Acadia Center, said it was “a cold, tough winter, there’s no doubt about it,” but added that “the primary driver of costs was gas and oil, not renewable energy.”

He said adding more clean energy to the grid will help diversify the supply mix and drive down market volatility. The New England Clean Energy Connect transmission line, which is slated to come online at the end of 2025 should save ratepayers millions annually, while the winter-peaking power production profile of offshore wind should provide significant relief for winter price spikes, Dickerson said.

He resisted the idea that adding new pipeline capacity to the region would lower consumer costs, telling attendees that “we actually don’t see that there is an economic case for the buildout of pipelines into New England.”

To read the full article from RTO Insider, click here.

Massachusetts utility bills are climbing. Here are four possible fixes.

Rising bills for gas and electric service have many consumers up in arms. It’s charges for the Mass Save energy efficiency program to blame, some say. It’s the utilities padding their bottom line, others say. It’s too much spending on infrastructure. It’s the colder winter.

The profit margin adds to the cost of any infrastructure projects that regulators approve, noted Kyle Murray, director of state program implementation at Acadia Center, a nonprofit focused on clean energy policy.

“Return on equity is certainly something to look at,” said Murray, who has made filings asking regulators to lower the profit rate. ”They’re making profits off of every additional pipeline. Every pipe that gets put in the ground, that is profit for them.”

To read the full article from the Boston Globe, click here.

Ray of Hope for Diversity and Inclusion in Environmental Careers

Acadia Center will serve as a host organization for a fellow from the Environmental Fellows Program (EFP) this summer, affiliated with Yale University. To kick off the fellowship and internship program, the annual New Horizons conference opens a unique opportunity for mentors and supervisors from host organizations to meet with incoming fellows and interns in their organizations. Acadia Center was represented by two staff members at the conference: myself, Joy Yakie, Environmental Justice and Outreach Manager; and Paola Moncada Tamayo, Senior Policy and Data Analyst. Also present at the conference were alumni of the fellowship program, professionals at different levels of careers in the conservation and environmental sectors, academics, students, vendors, and others. The sessions at the conference offered insights on how mentors could support fellows, as well as peer-to-peer learning opportunities among mentors from host sites.

This year, the New Horizons conference presented an opportunity to take a pulse check on environmental progress in the past year. From keynote presentations, plenary sessions, workshops, and flash talks, speakers delved fully into the progress and challenges of the last few years in environment and conservation. Two of my favorite sessions included a panel session that provided insight on the environmental movement and another session that explored current and future directions of energy policy and practice by looking at the gaps and shortcomings of the previous years and the work that lies ahead. Speakers for both sessions were former top government advisors and current professors in energy, environment, and climate from the University of Michigan School for Environment and Sustainability, the Yale School of Environment, and other institutions.

The Environmental Fellows Program (for master’s and doctoral students) and Yale Conservation Scholars – Early Leadership Initiative (targeted towards undergraduate students) are programs administered through the Justice, Equity, Diversity, and Sustainability (JEDSI) at the Yale School of the Environment. These programs, put in place in 2016, resulted from the support of various foundations to see diversity in the environmental sector following a deep-dive report by Professor Dorceta Taylor in 2014 on the lack of diversity observed in conservation and environmental non-profits, government agencies, and foundations.  Today, with diversity in the environmental sector still lacking and its value contested, the New Horizons convening brought a ray of hope by gathering like-minded stakeholders on the importance of diversity in the environment.

Acadia Center believes in diversity, equity, inclusion, and justice (DEIJ), and continues to ensure that those values are incorporated in our programs and organizational objectives. It understands that a climate-safe and clean energy future is only possible when all communities are represented in the planning and decision-making process; hence, Acadia Center’s continued support for diversity and inclusion in the programs that bring about such representation. In addition to hosting a fellow from the Environmental Fellows program, we are also partnering with the Black Girl Environmentalist initiative to support a pipeline of environmental professionals of color. Acadia Center is confident that these initiatives will lead to a more diverse environmental and climate policy arena that fosters equity and inclusion.

Trump says the solution to high New England energy costs is a natural gas pipeline project. It’s not nearly that simple.

WASHINGTON — As Massachusetts Governor Maura Healey and leaders of other Northeast states try to reduce high energy costs, President Trump is pitching a simple but controversial solution: resurrect a major pipeline project to bring more natural gas to the region.

Joseph LaRusso, manager of the Clean Grid Program at the Acadia Center, an advocacy group working to cut Northeast carbon emissions in half by 2030, said building the pipeline now would probably cost $1.2 billion to $1.5 billion.

“While the conversation around pipelines has become resurgent again in the wake of this cold winter and concerns about affordability, there really is no indication that any increase in interstate gas transmission pipeline capacity into New England would make a difference in terms of prices,” he said, noting that prices have not moderated despite the region’s pipeline capacity increasing by 51 percent since 2014.

To read the full article from the Boston Globe, click here.

Merrimack Valley prepares to launch New England’s first zero emission passenger ferries

Merrimack Valley officials are planning to launch New England’s first-ever zero emission ferry next year to provide passenger service on the Merrimack River between Haverhill, Amesbury and Newburyport. The small scale project is being eyed by other transit officials as a kind of proof-of-concept that could open the door to wider use of zero-emission boats around the state.

Kyle Murray, who directs state policy at the Acadia Center, an environmental and clean energy advocacy nonprofit based in Boston, welcomed the Merrimack Valley ferry plan, especially if it leads to other lower-emission ferries in the region.

A GBH News investigation, Poisoned Ports, has highlighted rising public health concerns about port communities’ exposure to harmful air pollution from ships burning heavy fuel oil and diesel.

“There are genuinely extremely difficult questions when it comes to certain aspects of decarbonization, particularly with heavy freight,” Murray said. “[But] certain types of things can go all electric with relative ease. Those are ideas we should be really trying to pursue … that can really drive innovation forward.”

To read the full article from GBH, click here.

Healey unveils new energy affordability legislation

Gov. Maura Healey unveiled a new energy affordability legislation package on Tuesday, which she said will bring down energy costs by more than $10 billion over the next decade, but consumer advocates and environmentalists criticized the plan, saying it didn’t go far enough to rein in energy companies that pass along gas infrastructure costs to consumers.

Kyle Murray, Massachusetts program director at the Acadia Center, a non-profit research and advocacy organization dedicated to combatting climate change, said that he applauds Healey for not compromising the green energy transition in the name of energy affordability.

“I appreciate that there are no, what I like to call, ‘false solutions’ in there,” said Murray. “There’s no ‘Hey, let’s pursue a new gas pipeline or at least look at that,’ because we know that probably will do nothing to reduce costs.”

To read the full article from Commonwealth Beacon, click here.

Governor Healey Unveils Energy Affordability, Independence & Innovation Act to Save Ratepayers $10 Billion

Leominster — Today, at the Leominster Veterans Memorial Center, Governor Maura Healey filed the Energy Affordability, Independence & Innovation Act to bring down costs for residents and businesses.

The legislation saves customers money, brings more energy into Massachusetts, and increases accountability of the utilities and drives innovation. Key reforms include eliminating and reducing certain charges on the bill, taking steps to create accountability and ensure utilities aren’t passing unnecessary costs onto ratepayers, and reducing barriers to new cutting-edge nuclear technologies. The administration estimates that the bill will save Massachusetts customers approximately $10 billion over 10 years, on top of the $6 billion in savings estimated from her Energy Affordability Agenda announced in March.

Kyle Murray, Massachusetts Program Director and State Program Implementation Director, Acadia Center: 

“After a brutal winter where ratepayers suffered high bills stemming from an overreliance on volatile fossil fuels, the Healey/Driscoll Administration is taking bold steps to deliver affordable and reliable clean energy in the Commonwealth. This creative legislation will help speed up renewable energy production, hedge against fossil fuel volatility, eliminate unnecessary charges, and provide effective oversight of our energy systems. Acadia Center looks forward to working with the Administration and the Legislature to move a bill forward that will help all residents with their energy bills.”

To read the full article from Mass.gov, click here.

Why is your energy bill so high? Blame natural gas volatility and utility profits

This winter, New England residents were battered by persistently high energy bills, especially for natural gas service. In Massachusetts, the state’s energy efficiency program, Mass Save, unfortunately emerged as a convenient scapegoat, despite saving the Commonwealth and ratepayers billions of dollars.

The real culprit for high bills this winter? The cost of natural gas infrastructure, generous utility profits, and the region’s continued fossil fuel investments – which left us ill-equipped to deal with an exceptionally cold winter.

In response to complaints about energy affordability, utilities like Eversource and National Grid have pointed to increased funding of the state’s cost-effective energy efficiency program. This is no small source of irony – Mass Save is a relatively small fraction of bills, but it is the most potent tool available to empower consumers to control their energy costs and protect them from fossil fuel price spikes.

The vast majority of the bill, around 70-75 percent, goes toward natural gas costs – relating to gas supply, distribution, and maintenance – compared to just 15-25 percent going toward energy efficiency. Unlike other energy costs, efficiency is the only investment that is required to pass cost-effectiveness testing. In fact, overall energy system costs would be billions of dollars higher without the cost reductions secured with efficiency. Not nearly enough scrutiny has been given to the investments on which gas utility companies make money.

One of the primary ways an investor-owned gas utility makes a profit is by making a return on investment at a specific rate, approved by the state, on capital investments in gas infrastructure projects: the extensive, multi-billion-dollar pipeline network in place under our streets.

In Eversource territory, for example, this healthy rate of return ranges from around 9.5 percent to 9.9 percent. This generous profit structure incentivizes utilities to pursue costly system upgrades and expansions, which are well-compensated, and to add more customers onto the system despite the misalignment with state goals. The more utilities spend on outdated infrastructure, the more money they make, and the national numbers bear this out: Over the last three years, residential electric rates for investor-owned utilities have risen 49 percent more than inflation. Meanwhile, the rates at publicly-owned electric utilities have increased 44 percent less than inflation.

It should also be noted that existing gas customers pay a disproportionate share of the costs for bringing new gas customers online. Since 2018, existing gas customers have footed the bill for 80 percent of all new gas customer connections. And these subsidies – known as line extension allowances – are driving up gas bills for everyone.

In 2023 alone, Massachusetts gas customers were charged $160 million to add new customers to the gas system, to the tune of $9,000 per new customer, which is reflected on ratepayer gas bills.

The cost of adding new customers is rising as well. The average cost of adding new customers rose 50 percent between 2020-2021 and again in 2022-2023. In fact, despite an acknowledgement by the state and by utilities that we should be winding the gas system down – not expanding it – the growth of the sprawling pipe network shows no signs of stopping.

According to a recent earnings report from Eversource, for example, the company projects that its gas distribution costs across New England will increase 83 percent between 2023 and 2029, faster than either their electric transmission or distribution subsidiaries. Given the rapid pace of electrification and related system needs, this discrepancy between what utilities have committed to, and what’s actually happening, is noteworthy.

A separate analysis commissioned by the Massachusetts attorney general’s office corroborated that a potentially vast and rapid gas system build-out – and associated impacts to ratepayer bills – could occur without state intervention. According to the AG’s analysis, the path we’re currently on could see the state’s gas rate base – the total value of gas system assets on which utilities are allowed to earn a rate of return – jump from $10 to $20 billion in a short span of roughly 10 years.

In multiple sectors of the economy, Massachusetts and the rest of the region remain frustratingly over-reliant on natural gas. In 2023, about half of Massachusetts households used natural gas for home heating, and the Commonwealth – as part of ISO-New England’s regional grid – relied on gas for roughly 55 percent of the power produced in 2024.

What this means is that when it gets cold in the winter, costs can shoot up dramatically due to the volatility of natural gas prices. And, as America exports more liquefied natural gas (LNG) abroad, domestic gas prices are increasingly tied to the unpredictability of global gas markets.

It was very, very cold this winter; the coldest winter since 2014-2015, in fact. According to data compiled by Acadia Center, the average temperature in December 2024 was a full 10°F colder than December 2023. Further, from December 2024 through February 2025, Massachusetts saw 23 days colder than 20°F, compared to only nine such days the year prior.

These colder temperatures generally mean that residents are using more energy, driving up bills. However, due to the Commonwealth’s overreliance on natural gas and other fossil fuels, it also means higher costs for the supply of energy. For example, the region endured a whopping $4 billion in wholesale electricity market costs this winter, per ISO-New England (a roughly $2 billion increase from last year), making it the costliest winter since 2014-2015.

One small ISO-New England program giving payments to dual-fuel (gas-oil) power plants, the inventoried energy program (IEP), cost almost $80 million over just five days. Can anyone really look at the region’s exposure to such volatile, concentrated costs and conclude that the region should invest less in energy efficiency, rather than more? Other barriers to offshore wind and local clean energy will only increase this unhealthy reliance on natural gas further.

If Massachusetts wants to take steps to lower energy bills in the long-term, we should not shy away from renewables and energy efficiency. Instead, we should embrace those clean resources, take steps to end our overreliance on natural gas and fossil fuels, and reduce business-as-usual utility profits.

Kyle Murray is director of state program implementation at Acadia Center, a nonprofit climate advocacy organization. 

To read the full article in Commonwealth Beacon, click here.

Massachusetts Lawmakers Focusing on Energy Affordability in 2025

In the wake of skyrocketing energy costs over the past winter and the loss of federal support for state clean energy initiatives, Massachusetts policymakers are facing difficult questions about balancing decarbonization with energy affordability in the state’s 2025/26 legislative session.

While lawmakers and advocates are quick to support the idea of energy affordability, in practice, the concept can motivate widely ranging policies with varying effects on decarbonization efforts.

Kyle Murray, director of state program implementation at the Acadia Center, said he would like to see the energy affordability bill include limits on utilities’ return on equity (ROE), potentially restricting ROE to an average of the surrounding Northeast states.

“Our position has long been that utility return on equity is really inflated and could serve to come down a few points,” Murray said, while also acknowledging that passing ROE reforms would be challenging due to the complexity of utility ratemaking and likely opposition from investor-owned utilities.

Murray also said he hopes lawmakers will consider changing the funding mechanism for some programs currently funded through volumetric charges in electricity and gas rates. He said funding programs like low-income discounts, Mass Save and renewable energy charges through fixed bill charges or through the tax base could save most ratepayers money.

He also expressed interest in legislation limiting the expansion of the state’s gas network, a priority shared by Mass Power Forward, a large coalition of climate and environmental justice groups.

To read the full article from RTO Insider, click here.

Utility companies target heat pump incentives for cuts to pare back Mass Save budget

After state officials reduced Mass Save’s proposed budget by $500 million in February, the utility companies that run the energy efficiency program have proposed a new pared down compliance plan with the largest cuts coming to incentives for heat pumps and a program that provides a one-stop shop for residents looking to weatherize and invest in electrification upgrades.

“These cuts represent some of the best options of bad options,” said Kyle Murray, a member of the council and the Massachusetts program director at the Acadia Center, a non-profit research and advocacy organization dedicated to combating climate change.

The Mass Save program – which helps homes and businesses become more energy efficient and reduces greenhouse gas emissions – is funded through a surcharge on electricity and gas bills. After gas bills spiked across the state due to an unusually cold winter and the increase in the Mass Save surcharge, the DPU decreased the budget for the program from the proposed $5 million to $4.5 million. The DPU directed that the cut come from programming for the residential sector.

Environmentalist advocates including Murray called the move “short-sighted,” saying that the cut will result in increased costs for residents in the long run.

To read the full article from Commonwealth Beacon, click here.