DPU Opens Investigation to Review All Charges on Utility Bills

• Department of Public Utilities

BOSTON- The Massachusetts Department of Public Utilities (DPU) opened an investigation today to comprehensively review all delivery charges on electric and gas utility bills. The investigation will examine the causes of bill volatility and promote a greater understanding of rates for customers to take greater control over their energy bills. This investigation aligns with the priorities highlighted in Governor Healey's letter to the DPU and includes additional analysis on potential measures to further protect ratepayers.

This investigation will explore ways to contain energy costs that fall under the DPU's jurisdiction. As part of the investigation, the Department will evaluate whether certain charges should be eliminated, consolidated, or redesigned as a fixed charge. The investigation will also review whether to establish maximum limits on how much specific charges can increase from month to month.

This investigation follows a series of actions the DPU has taken to address energy affordability in this year alone, such as reducing the budget of the current Mass Save 3 Year Plan, requiring immediate mitigation measures for last winter's gas bills, strengthening cost controls in the Gas System Enhancement Plan programs, and establishing and implementing new electric rates to reduce winter costs for residents using heat pumps.

"This thorough investigation will shed new light on ratemaking for the public," said Chair Jeremy McDiarmid. "We're eager to continue the momentum built this year to help keep bills in check and put utility customers first."

"I came to the DPU with the intent to better protect ratepayers and help manage energy costs," said Commissioner Liz Anderson. "As the commissioner leading this investigation, I look forward to tackling these critical issues head-on and working to make a difference for ratepayers across Massachusetts."

"This investigation illustrates our commitment to a more transparent, equitable, and innovative DPU," said Commissioner Staci Rubin. "Energy affordability will always be a core part of our mission. The investigation we opened today will work to assist customers across the state and make bills more transparent and understandable."

Included in gas and electric utility bills are the supply rate and components that make up the delivery portion of bills. The delivery portion includes a fixed customer charge, the base distribution rate, and rates for reconciling mechanisms that allow utilities to recover costs required by state and federal policies, and costs necessary to maintain safe and reliable infrastructure. The first phase of the DPU's investigation includes a complete review of all components on the delivery portion of both electric and gas utility bills. Currently, the DPU conducts annual, charge-by-charge reviews of most delivery components in its jurisdiction in separate dockets, scrutinizing utility cost recovery requests to ensure the expenditures were prudent and consistent with approved tariffs, state laws, and federal policies. This investigation will explore rate designs that reduce bill volatility and make it easier for consumers to understand the different components of their bill and what contributes to bill changes. The proceeding will also review net metering charges with the goal of identifying near-term cost controls for electric utility customers. This phase of the investigation will review possible changes to the net metering recovery charge paid by electric customers without compromising the continued development of solar in the state.

The second phase of the investigation will launch an inquiry into utility bill design, increasing transparency for ratepayers when they receive their bills and creating more consistency across companies.

In addition, following the severe billing errors customers have experienced this year, the DPU also plans to examine current utility billing practices and utilities' performance in meeting their obligations to provide their customers with accurate, transparent, and timely bills. This investigation will commence in the coming months.

If you need help understanding your bill or if you are seeking assistance in paying your energy bills this winter, please visit the DPU's understanding your utility bill page or winter bill resources page.

###

• Department of Public Utilities

  The Department of Public Utilities (DPU) oversees investor-owned electric power, natural gas, and water companies in Massachusetts. In addition, the DPU regulates the safety of bus companies, moving companies, and transportation network companies. We also oversee the safety of natural gas pipelines.

Phone

Online