MA Needs Energy Affordability Bill
It’s no secret that Massachusetts electric rates are getting out of hand. Especially when you compare Massachusetts energy bills from last spring to this winter. Lawmakers have worked towards a lasting solution, but right now, there doesn’t seem to be an end in sight. That’s why Governor Healey has announced plans for a new energy affordability bill. But what could this bill do and what will it take to make it happen?
Why Are Electric Rates So High?
EIA data shows that MA uses twice as much energy as it produces. In addition, most of its electricity comes from natural gas burning generators. This means that the state has high demand for energy and has to import natural gas and as well as electricity from out of state. As a result, the state had the third highest electric prices in the country in 2023.
Utilities have blamed government programs, such as Mass Save, as helping to keep rates high. This may be why DPU recently announced that it would make budget cuts to the program for the next three years. However, critics argue that this is ‘scapegoating’. They point out that Mass Save helps households conserve energy in the long term, which would decrease usage and costs.
AG Requests Electricity Rate Relief
Late in February, the Attorney General’s (AG) office released a statement calling on the DPU to lower rates and to keep them down by at least 5% for the rest of the winter. This was in response to customer outrage over sky-high rates, especially because of recent delivery charge rate increases.
In response, Eversource and National Grid proposed a 10% cut to gas delivery charges for March and April. Estimates show that Eversource customers would see gas bills drop by $33.75 in March and $19.71 in April. While National Grid customers could see these bills drop by close to $40 per month! However, this reduction wouldn’t be forgiven. Instead it would be repaid during the off-peak seasons from May through October
A More Affordable Energy Bill
As you can guess, a rate decrease for either natural gas or electricity isn’t a long-term solution. Because of the volatile natural gas market and growing energy demand, prices have been rising across the country. So lawmakers are searching for longer-lasting solutions.
Governor Healey announced a new affordability plan to help cut consumer bills. Haley states that this energy bill would bring down costs for families and businesses alike. She has even promised to use executive action to make sure that the bill goes into effect.
The Governor has not yet announced details. But, she recently announced a $50 credit that will go to energy utility customers in April. There’s also talk about expanding discounted energy rates. Originally, discount rates were only offered to low-income families, but this may be expanded to include moderate-income households.
The state will also try to expand its renewable energy profile. In 2023, about 24% of the state’s energy came from solar plants. Adding more solar could help cut MA dependence on expensive natural gas.
MA Rate Predictions
It’s too early to predict where rates will fall in the future. However, the EIA predicts New England rates could rise from 27.84 cents per kWh to 31.22 cents by this time next year. Rates would then jump another 10% by September, 2026. Additionally, if Canada imposes retaliation tariffs on energy, then rates could rise even higher.
Remember too that the best way to cut your electric bill is by shopping MA electricity suppliers. You can start saving today by shopping for the best rates in town at https://www.maenergyratings.com. You can also count on us for news and tips that could affect your bills.