What appears to be a new gas rate cut for Massachusetts residents announced by Department of Public Utilities really isn’t

In what may seem like a cut in utility costs in Massachusetts, really isn’t.

In a letter delivered to Massachusetts gas distribution companies on Thursday, the Department of Public Utilities stated that with “the combination of increased supply costs, the recovery of unusually high programmatic costs through delivery charges, and a cold winter has driven customer bills to unsustainable levels. These circumstances warrant immediate measures to provide relief to consumers. Customer affordability lies at the core of the Department of Public Utilities’ priorities, and we must use all available tools at our disposal.”

The letter goes on to say that the DPU is directing the gas local distribution companies to file revised costs that will result in no less than a five percent reduction in residential and residential low-income average bills for the remainder of the peak season (i.e., March and April 2025).

The Companies shall file these proposals in their cost of gas adjustment factor and local distribution adjustment factor dockets no later than 5:00 p.m. on Monday, for effect on March 1, 2025.

As they say, the devil is in the details.

The letter states that any deferred costs will be collected through the local distribution adjustment factor during the off-peak season (i.e., May through October 2025). Going forward, the Department intends to investigate whether to shift certain delivery costs from the peak period to warmer months on a permanent basis.

What this means is, whatever money you saved due to the reduction will just be added during the warmer months, so you aren’t really saving anything, the cost is just getting redistributed to months where you won’t be using gas to heat your home.

Now I’m not saying this won’t help some families living paycheck to paycheck who can’t afford the skyrocketing gas distribution costs, keep in mind though that it’s not a savings, just a redistribution to other months.