Utility looking to raise natural gas prices

Eversource’s new rate affects about 500,000 natural gas customers in Massachusetts, increasing monthly gas bills from, say, $250 to as much as $325.

National Grid’s rate increase affects about 950,000 natural gas customers in Massachusetts, increasing a monthly bill from, say, $250 to as much as $282.50.

The increases are effective immediately.

National Grid attributed most of its rate increase to the cost of Mass Save, the state-mandated energy efficiency program that is paid for through monthly surcharges on ratepayers’ bills. The program’s budget is expected to increase by 25 percent.

In a statement, National Grid said the total increase included an increase of about 1.5 percent to cover what it pays for the gas it supplies to customers, and that the remaining 9.5 to 11.5 percent was attributed to costs “related to energy efficiency programs. ”

Eversource also said one of the components of the rate increase was the cost of paying for Mass Save, but an Eversource spokesperson declined to say how much of the total requested rate increase is related to Mass Save.

In a statement, Eversource said Mass Save is designed to save taxpayers money in the long run.

“Customer participation in the industry-leading Mass Save program and access to benefits reduces customer bills every day,” the statement said.

“Without these programs, bills would be higher and household budgets would be strained,” the statement said. “The energy that a customer never uses produces real savings.”

Managed by a consortium of utilities, Mass Save has for more than a decade offered home energy audits and thousands of dollars in rebates to encourage ratepayers to take steps such as weatherproofing their homes to reduce energy use and their carbon footprint .

Late last month, the Healey government announced its support for a plan to increase the Mass Save budget by around 25 percent, from $4 billion for the three-year period ending at the end of this year to $5 billion for the period of three years. from 2025 to 2027.

The new plan was recently unanimously approved by a 14-member Energy Efficiency Advisory Board, chaired by a representative of the Healey Government’s Department of Energy Resources.

With the new plan, Mass Save says it will weatherproof 184,000 homes, including approximately 75,000 low- and middle-income households and 51,000 rental properties, and support the installation of heat pumps in more than 119,000 households, including 23,000 low- and middle-income households. households and 13,000 rental properties.

In a statement on October 24, Governor Maura Healey said: “Massachusetts consistently ranks first in the nation in energy efficiency. This new three-year plan will take Mass Save to the next level.”

A DPU spokesperson said the regulator is “pursuing every opportunity to keep rates low for Massachusetts residents and families. As gas prices continue to fluctuate in winter, the ministry has taken action to extend customer rebates and promote the transition to more stable clean energy sources and away from volatile fossil fuels.”

A spokesperson for Mass Save said the state Office of Energy and Environmental Affairs is mandating the level of greenhouse gas emissions reductions across the state. under each three-year Mass Save plan, as required by law.

The attorney general’s office, which serves as an advocate for taxpayers, also praised the new Mass Save plan.

“This plan will deliver significant, cost-effective benefits to Massachusetts residents, reduce energy burdens for thousands of households and make real progress in our state’s transition to clean heating technologies,” said Liz Anderson, chief of the Attorney General’s Office of Energy and Taxpayer Division -general. advocacy.

Utilities charge customers for both the supply and delivery of natural gas, which includes Mass Save in addition to other supply costs such as infrastructure maintenance.

On the supply side, utilities typically charge their customers what it costs them to purchase natural gas. Natural gas costs have remained broadly stable after falling following a huge spike caused by Russia’s invasion of Ukraine in early 2022.

In its latest report, the U.S. Energy Information Administration said it expected natural gas prices in the Northeast to rise 1 percent compared to last year.

“Overall, we expect relatively little change in energy bills for much of the country this winter compared to last winter, as lower energy prices largely offset the colder weather,” EIA said.

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