Will MA Energy Bill Lower Prices?
Does it feel like Massachusetts electric rates are higher than they’ve ever been before? The situation has led to homeowners It seems like electric rates keep climbing every year, especially when you consider growing energy demand and rising natural gas prices. That’s why a new bill has passed the MA House that seeks to reform the energy market. But will this bill lower your prices or does it have problems that you should watch out for? Let’s unwrap what you should know about the new MA energy affordability bill.
What Is In the Affordability Bill?
Last May, Governor Healey announced plans for an energy affordability bill to answer the question of rising energy costs. By February 26, state lawmakers approved a new bill meant to cut costs to consumers. This bill, House Bill 5151 (H5151), makes changes to MA rules covering energy choice and data centers.
For instance, the bill allows cities and towns to completely ban electric choice for their residents. In other words, towns and cities could vote to prevent 3rd party energy companies from opening new contracts with residents. However, this ban would not apply to municipal aggregation allowing towns to bargain for cheaper rates.
More importantly, the bill would require data centers to procure 80% of their power from green energy sources. This limits the effect data centers would have on your bills as well as promoting green energy. On top of this, data centers would be charged tariffs so that their power needs would not affect homeowner bills.
Problems With Affordability Bill
The bill, on paper, provides short term relief and helps soften the effect of data centers on your electricity bills. However, critics complain that H5151 fails to consider long-term savings for MA customers.
For example, the current version of the bill cuts the state’s commitment to cut greenhouse gas emissions. As a result, MA homes will face unstable energy prices due the volatile natural gas market. Keep in mind that this is on top of the environmental concerns that could be solved by promoting green power.
In addition, the bill cuts $1 billion from the Mass Save program. This would cut the program’s budget by 40-50% from later this year through 2027. The bill could also reduce funding for municipal green energy projects.
Make Your Energy More Affordable
Right now, it’s too early to tell if the bill will pass the senate as is. So final savings and cost cuts are still a long way away. With so much uncertainty facing MA consumers, it’s important to save energy whenever possible. We recommend starting by switching to energy efficient appliances and devices as a start.
But you can also shop for the cheapest electricity plans in town right here at https://www.maenergyratings.com. You can also count on us for tips and news that could affect your bills.