Healey taking executive actions to address rising energy bills

Massachusetts Gov. Maura Healey. 

Massachusetts Gov. Maura Healey.  Nancy Lane/Boston Herald/TNS

By CHRIS LISINSKI

State House News Service

Published: 03-12-2025 1:41 PM

BOSTON — The Healey administration hopes to save residents billions of dollars in energy costs over the next five years by pulling a host of executive-branch levers, including redirection of some clean energy development funding to shave $50 off electricity bills in April.

Gov. Maura Healey this week sketched out a push to reduce household energy bills with actions that her administration, including the Department of Public Utilities and Department of Energy Resources, can take without legislative approval. She also continues to work on legislation targeting energy affordability.

Most of the savings Healey outlined Monday would arrive in the medium or long term as a result of expanding discount programs, stabilizing the local energy supply, and redirecting clean energy-related charges that drive up utility bills.

But some relief will arrive almost immediately. Residential customers who receive electricity from Eversource, National Grid and Unitil will each receive a $50 credit in April, funded by about $125 million the state collected in so-called alternative compliance payments.

The state still has about $24 million in uncommitted ACP funds on hand for any emergency actions, according to officials. Healey called redirecting most of that program “good fiscal management.”

Officials also estimate natural gas bills will be about 10% lower in March and April after the DPU halved a proposed budget increase for the Mass Save program, which is largely funded by charges passed along to consumers.

“I know [$50 is] not a ton of money compared to what people have been paying, but it is something. Every dollar counts. This is yours to keep,” Healey said. “Between gas and electric savings, it means $220 million now. Because of our actions, $220 million is going right back in the pockets of Massachusetts residents.”

The vast majority of the savings Healey and her deputies believe they can achieve over the next half-decade would come from expanding discount programs to include more Bay State households, eliminating customer charges used to fund some clean energy programs, and tapping into other sources like hydroelectricity generated in Quebec.

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One component of the plan would increase automatic enrollment in discount plans offered by utilities, which the administration estimated could save $967 million over five years. Energy and Environmental Affairs Secretary Rebecca Tepper said many people are already eligible for reduced costs but do not take advantage of the options.

DPU is also working to implement a new discount rate available to moderate-income households, an idea outlined in the clean energy bill Healey signed in November.

“This would be the first time that any state in the country has provided a program to provide discounts specifically to middle-income folks in their state,” Healey said.

Healey said the administration would take steps to “smooth out” energy bills over the course of the year so the spikes in the colder winter months — when the region uses more electricity and heat — would not be as dramatic.

“The bills are high, but it’s also that they’re coming out of left field. You didn’t see it coming,” she said. “We want to eliminate that volatility so that families and people can plan their budget.”

Healey’s plan in part returns to the playbook the DPU rolled out with Mass Save: diverting funds from clean energy and energy efficiency programs to lessen the burden on ratepayers.

The governor on Monday praised Mass Save as having “served an important purpose.” If the program that offers rebates and incentives for lower-emissions and more efficient infrastructure did not exist, electricity bills would be 14% higher than they are today, she said.

But during a stretch of “high prices and volatility,” Healey said, she felt it worthwhile to explore any means to reduce costs for Bay Staters.

That’s also what the administration envisions doing with the Solar Renewable Energy Certificate I and II program, which have helped build out a network of solar panels. The program was set to be phased out at an unspecified point in the future, but Healey said her team “accelerated it.”

Officials estimate the end of SREC I and II will save a combined $1.5 billion over the next five years.

“We are literally going down the [energy] bill and looking at every single charge, trying to decide whether something might be modified or whether something has served its purpose or should stay the same,” Tepper added. “We’re in the process of doing that analysis now.”

Caitlin Peale Sloan, vice president for Massachusetts at the Conservation Law Foundation, described Healey’s push to redirect some energy efficiency funding toward ratepayer relief as “an important gesture.”

“It is certainly a short-term effort. It’s not something that could be done on a consistent basis without major legislative changes,” she said in an interview. “Energy bills are more regressive than taxes, so thinking about different ways to finance certain programs so that we can continue to make progress toward our absolutely essential climate requirements while making energy bills more affordable for people — that’s very important.”

Healey’s plan also calls for the Department of Public Utilities to examine new “potential regulations” on competitive electric suppliers. Watchdogs — including Healey herself when she was attorney general — have accused those third-party companies of predatory tactics, but legislative efforts to prohibit them from selling power to residents stalled in the House.

Limiting expansion of competitive electric supply to residential customers could save $335 million over a four-year period, Healey’s office estimated.

Industry groups representing competitive electric suppliers argue they can save customers money and often offer power at lower prices. Last month, the average rate for competitive suppliers was 12.49 centers per kilowatt hour, compared to an average 13.82 cents per kilowatt hour from seven utility companies, according to the Retail Energy Advancement League.

“Governor Healey’s Energy Affordability Agenda can benefit from further expanding customer knowledge on how to shop for competitive electric suppliers,” said Chris Ercoli, the industry group’s president. “Competition has not only spurred innovation to the benefit of Massachusetts energy users, it has created a market where energy suppliers are competing for the business of customers, resulting in lower energy prices.”