Mass. Gov. Maura Healey takes on utility bills
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No matter what's happening in the world, Massachusetts can rely on two constants each fall: unpredictable weather and, in recent years, sky-high energy bills.
Why it matters: Gov. Maura Healey can't control the weather, but she can direct regulators to rein in utility costs — at least, that's what she's trying to do.
Driving the news: Healey asked utilities regulators in a letter Tuesday to review every line item in gas and electric bills — a first, despite years of rate increases.
Context: Interest groups on Beacon Hill are playing the blame game over what's driving utility costs, with some calling Mass Save the culprit.
- Whatever the reasons, residents saw their energy costs jump last winter, in some cases by several hundred dollars each month, even after Healey passed an affordability plan that ultimately reduced winter rates.
What they're saying: "Every dollar has to be justified," Healey told reporters Tuesday afternoon. "If there isn't a real customer benefit there, it should come off the bill."
Here's what Healey asked the Department of Public Utilities to do:
Analyze infrastructure costs: Healey wants regulators to determine whether every dollar the utility company collects for infrastructure is necessary and efficient.
"Carefully scrutinize" rate increases: Healey specifically asked DPU to take this approach with Eversource's proposed natural gas increase, which could hike monthly bills up to 17% if approved as-is.
- It's up to DPU to green-light every rate increase proposed by a utility company.
Ramp up solar construction: Healey is urging providers to install solar power infrastructure before the Trump administration rolls back the tax credits, which can cover 30% of eligible projects.
The other side: Utility company representatives say the costs are driven by changes in the energy supply market, and that scrutinizing infrastructure costs alone won't fix the affordability problems.
- William Hinkle, an Eversource spokesperson, said maintenance and infrastructure costs — the only ones the company can control — represent 48% of a natural gas bill and 40% of an electric bill.
- "We share the Governor's priority of addressing the energy affordability challenge faced across New England and look forward to working with our regulators and the administration so that customers have full transparency into everything that goes into their utility service," Hinkle said in a statement to Axios.
- The company has also shared a mitigation plan with the DPU that includes a $20 benefit to offset costs in January and February.
What we're watching: Healey gave no timeline for when she wants the reviews completed, and DPU has to decide on Eversource's proposed rate hike, which would take effect Nov. 1.