Will MA See Utility Refunds Sooner
Early this year, the FERC ordered MA utilities to pay over $1.5 billion back to customers. However, utilities pushed back the deadline into spring of next year. Right now, Governor Healey wants every Massachusetts utility company to refund the money to their customers before winter. But why has the FERC made this order and how much could you receive? Here’s why the governor wants utility refunds paid sooner.
FERC Utility Refunds Explained
Back in March, the FERC cut the base return on equity (ROE) for New England power line utilities by 1 percent (from 10.57% to 9.57%). As a result, it ruled that Eversource, National Grid, and Unitil had all gained excessive profits from power line charges dating back to about 2011. Given huge sum and the long period of time, the total refund plus interest equals about $1.5 billion owed to New England customers.
When FERC decided the case in March, utilities were ordered to repay this money back to customers within 30 days. Since that time, appeals pushed back the deadline until May 20, 2027. Utility spokesmen have stated that they will follow the ruling, but they need more time to handle this refund.
Governor Healey Wants Refunds Paid Sooner
As you can guess, this deadline change has come under fire. Governor Healey has pushed MA utilities to pay the money back before winter bills come due. To this end, she has demanded that utilities outline plans for repayment before October 27, 2026.
Healey has insisted that MA customers are worrying about high energy bills this winter. Keep in mind that some homes are facing a serious heating cost crisis. The EIA’s winter fuels outlook shows that winter heating oil will cost 21% more this year than last. So the refunds right now would help with the state’s energy emergency.
How Much Will MA Customers Receive?
Right now, it’s unclear when or how customers will receive any money because the utilities must calculate their refund. National Grid is responsible for $299 million. The refunds may come in the form of bill credits when they come, but Governor Healey as well as MA customers are waiting for numbers.
As always we’ll keep an eye on this story as it develops. In the meantime, you may be able to cut down your energy bills by shopping for cheap rates at https://www.maenergyratings.com.