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.