The Healey administration hopes to save Massachusetts ratepayers billions of dollars in costs over the next five years by redirecting some clean energy-related charges that drive up utility bills, expanding discount programs, and stabilizing the local energy supply.
Much of the savings is long-term, but immediate relief is planned in the form of $50 credits on April electric bills for residential customers of Eversource, National Grid and Unitil, Gov. Maura Healey announced Monday.
To pay for that one-time relief, the state will redirect about $125 million collected from Alternative Compliance Payments (ACP), which retail electricity suppliers can pay to help fulfill their requirements to use a certain amount of renewable or alternative energy sources. ACP funds normally promote clean energy projects or technology that reduces demand.
The redirection of clean energy funds for electric bill relief builds on a previous move to reduce March and April natural gas bills by about 10 percent.
“Look, I know the bills,” Healey said. “I get them myself. And I know many families and businesses have been really shocked and hurt by the spike in the cost of natural gas. This is not the time for big, sudden increases. It’s unacceptable. And that’s why I demanded DPU take action to lower utility bills.”
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 industry leaders argue they can help customers save money and legislative efforts to prohibit them from selling power to residents stalled in the House.
Altogether, Healey’s office estimated the constellation of actions, including elimination of the Solar Renewable Energy Certificate I and II program, expanded auto-enrollment in discount rates, and the arrival of power from the New England Clean Energy Connect program could save about $5.8 billion over a five-year span.
Healey said she also plans to file an “energy affordability and independence bill” at some point in the coming weeks, echoing a pledge she first made to business leaders two weeks ago.
“I need to see businesses and residents better protected against high gas bills, high heating bills,” Healey said. “That’s what this is going to do. This isn’t a climate bill. This is an energy independence, energy reliability, energy affordability bill.”
The governor held the energy costs press conference at Community Teamworks in Lowell.
During the press conference, she expressed concern about the effect tariffs are already having on the construction industry in Massachusetts -- and is concerned what might happen if the House congressional budget proposal passes.
“If that were to be passed, in our state alons two million residents, including 700,000 children and 200,000 seniors would lose health care,” she said. “Health care costs would double for 300,000 using the health connector marketplace.”
This is a developing story. Check back for updates as more information becomes available.
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