Here is how much savings Massachusetts electric residential customers will receive as part of Healey-Driscoll Administration Energy Affordability Agenda

LOWELL – Today, the Healey-Driscoll Administration outlined its Energy Affordability Agenda to identify and advance actions to lower energy bills for Massachusetts residents by $220 million starting in April and save $5.8 billion for electric and gas customers over the coming years. This starts immediately, with the Healey-Driscoll Administration delivering $125 million in savings to residential customers in April through a $50 credit on electricity bills, following the Department of Public Utilities’ (DPU) recent action to lower gas bills by $95 million. Additionally, over the next year, the DPU will work to establish a first-in-the-nation moderate-income discount rate and expand tiered-income discount rates for lower income customers.  

To enroll energy customers in existing money saving programs and rates, the Healey-Driscoll Administration convened the utilities and other stakeholders to launch a coordinated customer energy affordability outreach and engagement strategy, including providing in-person support to help sign people up for discount rates, bill management programs, and direct energy assistance. Residents looking to sign up for these programs can visit mass.gov/energysavings to learn about money saving opportunities for which they may be eligible.  

“We need urgent action to bring down costs – and a plan to make sure price spikes don’t keep happening to our residents,” said Governor Maura Healey. “That’s why I’m announcing our administration’s Energy Affordability Agenda to deliver $220 million in immediate relief and $5.8 billion in savings over five years. We will use every tool we have to help make sure families and businesses can afford to heat their homes and keep the lights on. In the coming weeks, I also will file an energy affordability and independence bill to explore new ways we can make Massachusetts more affordable.” 

“It’s time we come up with a comprehensive strategy to bring bills down,” said Lieutenant Governor Kim Driscoll. “Through our Energy Affordability Agenda, we’ll be getting residents relief now after an especially cold winter, while also expanding programs that can make bills more manageable in the long run. And we’ll be taking a careful look at the bill to minimize charges so we’re only paying for what we need.” 

“With our Energy Affordability Agenda, we’re getting people help now, keeping costs off bills, and getting ahead of surprise price shocks,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “Our Agenda includes historic actions. We need to address competitive energy suppliers that have overcharged residents outrageous sums. We’re launching a first-in-the-nation middle-income rate. And we need to get out of this cycle of costly swings in prices every winter.” 

The full plan can be found here and an outline of the potential savings is available here. Below are highlights from the plan: 

Electricity Bill Credit  

In April, every electric residential customer served by Eversource, National Grid, and Unitil in Massachusetts will receive a $50 credit on their electric bill. To be good stewards, the administration is directing money back to customers from funds collected to support clean energy. The state has determined that it can still achieve the goals these funds support and return approximately $125 million to customers. 

Expand Discount and Money Saving Rates  

Last year, the Healey-Driscoll Administration worked with the Legislature to authorize the DPU to establish a first-in-the-nation discount rate for moderate-income customers. Over the next year, the DPU will determine eligibility criteria, the size of the discount, and enrollment procedures so that more Massachusetts residents can get a break on their electricity bills.  

This year, the DPU will work to direct the utilities to improve the discount rate enrollment process for eligible customers and establish a tiered low-income discount rate for electric customers of Eversource and Unitil that provides deeper bill discounts to customers that meet certain income thresholds. This is similar to the tiered electric discount rates that will soon be offered to eligible National Grid customers. 

Finally, the DPU is working to expand heat pump rates across the utilities. These proposed changes could save an average heat pump customer up to $1,000 during the winter heating season, with combined savings expected to reduce overall costs to heat pump customers nearly $865 million over the next five years. 

Address Competitive Suppliers 

Some in the competitive energy supply industry are overcharging customers and flagrantly violating consumer protection laws. This industry has created an affordability crisis, particularly for low-income, veterans, and seniors. The DPU has begun to examine potential regulations to protect customers from this predatory industry and Governor Healey will continue to advocate for a solution to the harms brought by this industry.There is potential to save Massachusetts $335 million over five years. 

Minimize Charges on Bills  

The Healey-Driscoll Administration is reviewing every charge to determine if there are alternative ways to finance new electric grid infrastructure and reduce the impact on customer bills. The Administration is also taking steps to end programs that have achieved their goals and are no longer necessary and remove from bills the associated costs, saving some customers on their monthly electricity bills. 

Reduce Volatility 

Governor Healey has also called on the DPU to provide customers with immediate rate relief this winter and more transparency about their bills. The administration will explore innovative rate designs that will reduce volatility. Concurrently, the administration will pursue fixed price contracts for clean energy that can mitigate future price volatility and costs to customers, like the recently approved NECEC transmission line that will provide Massachusetts with hydroelectric power and will save customers billions of dollars over the life of the contract. 

Governor Healey intends to file an energy affordability and independence bill in the coming weeks to further advance these efforts.  

For more information on the agenda, its impacts, and how to get savings now, visit here.