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.

What’s that charge for? We’re breaking down your utility bills

Many of us saw crazy high home-heating bills this winter. Massachusetts energy bills were already among the highest in the country.

Now, as we approach the hottest months of the year, we know many of you are paying close attention to your utility bills. Do you ever look at those bills and wonder what all those charges are?

“I think people really want to know what goes into their bills,” said Kyle Murray, Director of State Program Implementation for the Acadia Center–a non-profit focused on renewable energy.

Murray agreed to sit down with Kavanaugh and go line by line through some energy bills, breaking them down, dissecting each of the charges.

Electric Bill Itemization

The first charge listed on an electric bill is the Customer Charge.

“That is basically the charge of meters,” said Murray. And the cost for utility companies to read those meters, fixed usually at $10 a month.

The Distribution Charge is the cost of carrying power from substations to your home.

“The stuff that’s in state that’s carrying it from substation to your home. Think those smaller poles and wires,” said Murray.

Murray says think of the Transmission Charge as the cost of big towers carrying power across the region.

Not to be confused with the Transition Charge which allows utilities to recover assets stranded after energy restructuring decades ago. Oddly, that can appear as a negative charge.

The Energy Efficiency Charge funds the Mass Save program–funding rebates and incentives to make homes more efficient. Murray says that has benefitted ratepayers whether they use the program or not.

“Because of the fact that Mass Save has been such a successful program, I believe the numbers around, we’ve reduced our energy build out that we would have had to do by about 20%. So that’s a lot of savings that are delivered, even if you’ve never used the program at all,” Murray said.

Next is the Renewable Energy charge.

“So, the renewable energy charge goes to a trust fund that funds the Massachusetts Clean Energy Center. And they are focused on clean energy innovations,” said Murray.

Don’t have solar? You still have two charges associated with it.

The Net Meter Recovery Charge –goes to homes with solar power producing more energy than they consume

The Distributed Solar Charge–provides consumers with incentives to install solar on their homes.

“It is efficiency measures for your home,’ Murray said. “It’s not generation side for your homes.”

And the Electric Vehicle Charge funds the state’s electric vehicle program.

The Ratepayer Debate

“I couldn’t believe that I’m getting charged for electric cars and solar panels, which I don’t have neither one of them,” said Massachusetts ratepayer Carmen Lopez.

Lopez echoes a sentiment of some ratepayers and that of the conservative non-profit, the Massachusetts Fiscal Alliance, which advocates for government and fiscal transparency and accountability.

“I would slash them [charges] all,” said Paul Craney, the executive director of the alliance. “I mean as a consumer if you want to pay for these projects, you certainly can but a lot of people don’t want to play for these projects.

Craney said the markets should decide whoever can produce the best product at the cheapest cost and consumers should choose what they want.

Massachusetts Fiscal Alliance blames high energy bills in part on the state’s push for electric energy.

“It all comes back to a bill, a law that was passed in Massachusetts, the Global Warming Solutions Act,” Craney said. “And so, as ratepayers, people who pay these bills, we are now starting to fund these mandates. We’re just in the beginning phase of how expensive this is going to become on the ratepayers.”

Craney argues natural gas is a more reliable energy source, and often a cheaper one.

Murray, with the Acadia Center, disputes that.

“No, it’s not always the cheapest. And in many cases investing in renewables such as solar or wind or hydro come in significantly cheaper at those moments and that’s why it’s really important to have a mix of fuels rather than just going all in on natural gas which is what we kind of did in the past,” Murray said. “You’re subject to the whims of the market when if production is down, prices can spike. Or if demand goes up, prices spike. So, this ends up with the consumer not necessarily knowing what their bill is going to look like due to things that are largely out of their control and largely out Massachusetts’ control too.”

But Murray says there should be a conversation about what programs fall to the ratepayer in their monthly utility bill.

“We can’t keep putting programs on the backs of rate payers. It’s just not sustainable in the long-term,” Murray said. “I think additionally we can start looking at what goes into the bill and determining should this be volumetric or should this maybe be a fixed charge or should it altogether maybe be removed from the bill, and put into the tax base somewhere.”

To read the full article from Boston 25 News, click here.

Attorney General Andrea Campbell’s big question on climate

Consumer shock at high energy bills this frigid winter sent Gov. Maura Healey and Massachusetts policymakers scrambling to ease the burden.

State regulators cut by $500 million the proposed budget for MassSave, an energy efficiency program for consumers interested in help buying heat pumps and electric vehicle equipment. Utility companies agreed to lower residential bills by 10 percent in March and April, with eyes on still getting their money through bills later in the year, when heating bills are typically lower.

The Acadia Center, a nonprofit supportive of clean energy and backed by foundations like the Barr Foundation and the Merck Family Fund, named for the heir to the pharmaceutical fortune, hit back at the report, saying the groups relied on “questionable” calculations that “vastly” inflate the cost of the clean energy transition. The report also “ignores the impossibly high cost of business-as-usual,” the Acadia Center said. “New Englanders withdraw billions of dollars out of the regional economy each year to purchase fossil fuels sourced outside New England.”

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

Massachusetts heat pump owners could pay less for electricity next winter

Nearly 3 million Massachusetts households will have the chance to start saving money on heating next winter under new seasonal heat-pump rates from the state’s three major electric utilities.

In the winter, though, average demand is much lower, so the strain on the grid is much lighter. During these months, the delivery charge doesn’t properly reflect the actual costs of keeping the grid running, said Kyle Murray, Massachusetts program director for clean energy nonprofit Acadia Center.

Households that operate heat pumps in the winter are ​“not actually putting much stress on the system at all,” he said. ​“They really shouldn’t have to pay as much as they are.”

To read the full article from Canary Media, click here.

Stakeholders Respond to Mass. Proposal to Limit Cost Recovery for Gas Expansion

Business groups and environmental advocates expressed divergent views on a proposal by the Massachusetts Department of Public Utilities that would require new gas customers to cover the entire cost of connecting to the system.

The department’s draft policy would end the utility practice of including the costs of connecting new customers into rate base. This is currently allowed if the utility expects to recover the costs through distribution fees from the new customers over an extended period.

The AGO and a range of environmental nonprofits called for the DPU to add language establishing strict criteria for the exemptions that would allow a project’s connection costs to be covered by ratepayers.

“The draft policy should establish a clear and consistent methodology for assessing a demonstrable reduction in GHG emissions for proposed line extensions serving new construction,” wrote a coalition of environmental groups led by Rewiring America and the Acadia Center.

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

The Constitution pipeline will not solve wintertime energy price hikes

From 2014 to 2016, residents of Massachusetts, New York, New Hampshire, and Connecticut successfully blocked construction of the Kinder Morgan/NED and Constitution pipelines due to their environmental destruction capabilities and irresponsible use of eminent domain. Residents of Massachusetts, Pennsylvania, and New York defeated the Constitution pipeline in 2016, a decision supported by the courts in 2020.

A recent Acadia Center article noted:

Since 2018, existing gas customers have footed the bill for 80% of all new gas … connections. And these subsidies … are driving up gas bills for everyone. In 2023 alone, Massachusetts gas customers were charged $160 million to add new customers … to the tune of $9,000 per new customer, which is reflected on ratepayer gas bills.

To read the full article from the Berkshire Edge, click here.

Fuel Rates, Mandates, Tariffs Add Punch to Energy Price Stew

As Massachusetts Democrats predict price shocks from President Donald Trump’s threatened tariffs on Canadian oil and gas, a Republican senator on Tuesday blamed ballooning ratepayer costs on the state’s clean energy mandates.

In response to Tuesday’s presser, the Acadia Center said high natural gas costs this winter stem from the New England region’s “untenable over reliance on fossil fuels, with rising energy burdens driven by natural gas infrastructure, generous utility profits, and the region’s continued fossil fuel investments.”

“Right now, the region has almost all its eggs in the fossil fuel basket, and this offers only the false promise of fool’s gold in protecting the region’s consumers from rising energy bills,” the Acadia Center said. “The region must double down on its climate and clean energy goals to make the broader northeast region energy independent from fossil fuels, reduce consumer price spikes, and mitigate the economic harms of worsening climate change.”

To read the full article from State House News, click here.

ISO-NE Consumer Liaison Group Discusses Benefits of Energy Efficiency

PROVIDENCE — Speakers at the ISO-NE Consumer Liaison Group on March 27 discussed the system-wide costs and emissions benefits of energy efficiency and demand flexibility and called on policymakers to double down on efficiency programs as energy demand grows.

State energy efficiency programs have faced some political scrutiny in recent months amid high winter energy costs. To help reduce near-term electricity costs, the Massachusetts Department of Public Utilities in late February directed utilities to shave $500 million off the upcoming three-year plan for the Mass Save energy efficiency program. 

Jamie Dickerson, senior director of climate and clean energy programs at the Acadia Center, said energy efficiency is responsible for a roughly 15% reduction in the region’s overall power demand and has brought more than $55 billion in benefits to the region since 2012.  

He said it’s unfortunate energy efficiency “has emerged as a scapegoat for some,” given the cost reductions it can provide. Moving ahead, he emphasized the importance of energy efficiency as peak loads increase and estimated that achieving 20% demand flexibility in winter could save the region about $8 billion in transmission spending by 2050. 

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

A New Bill in Rhode Island Would Give Electric Ratepayers More Resources to Fight Back

The Rhode Island Public Utilities Commission on Friday voted to approve Rhode Island Energy’s proposed summer rates for residential customers, saying customers can expect relief following costly winter bills.

But the new rates have been met with such backlash by community members concerned about surging electric rates that state Rep. Megan Cotter has co-sponsored legislation that would fund customers’ participation in hearings about ratemaking and other issues before the RIPUC.

Part of the reason the new summer rates have been approved, despite public comments and protests, is that community members lack the necessary resources to get a seat in the rooms where decisions about their energy system are being made, said Emily Koo, senior policy advocate and Rhode Island program director at the Acadia Center, a nonprofit research and advocacy organization focusing on climate solutions.

That’s why Cotter, in partnership with the Acadia Center and the Conservation Law Foundation, introduced legislation to create an intervenor support program. The bill would enable individuals or organizations seeking legal representation to take part in evidentiary hearings at the RIPUC and the Energy Facility Siting Board.

“The resources, attorneys, and regulatory and technical knowledge that are needed to be able to participate and present evidence in a way that can actually change decisions is really an issue of access, and so we’re seeing decisions and proceedings not reflecting the public interest,” Koo said.

Unlike public comment hearings, evidentiary hearings work more like a courtroom, Koo explained. During those meetings, commissioners serve like a panel of judges, looking at proposals and evidence presented by the interested parties.

Koo is optimistic that the bill will eventually pass in the state.

“I think that there is a lot of appetite for engaging in the regulatory process, and that this is a really great inclusive program option,” she said.

To read the full article from Inside Climate News, click here.