Massachusetts Energy Bills Decrease for Two Months, But There’s a Catch

Massachusetts residents can expect a temporary decrease in their gas and electric bills, as announced by Governor Maura Healey. However, the relief comes with important conditions that customers need to understand.

Details of the Massachusetts Energy Bills Decrease

Starting in February and continuing through March, electric bills will see a reduction of 25%, while gas bills will drop by 10%. This announcement precedes the governor’s State of the Commonwealth Address and follows her declaration of running for re-election.

Cost Implications

This initiative is expected to cost the state approximately $180 million, which will be funded through existing sources. Notably, this action comes shortly after National Grid proposed a significant rate hike of nearly 10% for gas customers starting in 2027, which Healey opposes.

Understanding the Rate Reductions

The 25% reduction in electric rates is split, with 15% subsidized by the state and the remaining 10% initially covered by energy companies. However, customers should be aware that they will likely have to repay these amounts later in the year.

• February-March Reductions: Electric customers save $60 per month.
• Gas Customers: Expected savings of approximately $27 each month.

Bill Deferrals Explained

The reductions are categorized as deferrals, meaning that customers will be billed for the deferred amounts in subsequent months. Gas customers may find themselves paying back the entire deferred amount between May and October. Electric reductions will be recouped gradually between April and December.

Utility Company Responses

In response to these announcements, National Grid stated they are collaborating with the governor to implement a winter relief effort aimed at reducing energy bills during the months of February and March. Meanwhile, Eversource has confirmed they are finalizing their approach to these rate adjustments, emphasizing that the impacts on bills will vary based on individual usage and weather conditions.

As the situation unfolds, Massachusetts residents are encouraged to stay informed about their energy bills and the potential for future adjustments. The temporary rate reductions provide immediate relief but come with a caveat that could affect future payments.