In response to projections about higher energy costs Massachusetts, several state lawmakers have sent a few letters to the Department of Public Utilities asking them to reassess how the utility rates are set in the state.

The most recent letter can be found here. Representatives are awaiting a response from the DPU.


What You Need To Know

  • Massachusetts lawmakers sent a letter to the Department of Public Utilities asking the agency to review gas and electricity rates on Wednesday

  • This comes after an original letter sent on October 11, 2022 asking the DPU to halt the widely reported January 2023 rate increase. The department replied on October 26, 2022

  • The department's original response outlined steps the DPU has taken for customers and lower energy costs, and identified contributing factors to winter prices

  • Utility companies said rates are controlled by the prices they can find on the global market, which are at a historic high

“The fact in the matter is the system is broken here in Massachusetts,” State rep. John Barrett (D-Berkshire) said.

“If there’s a way to lower these rates in a very timely manner, I think it’s important that it gets done,” State sen. Paul Mark (D-Berkshire) said.

In the letters, lawmakers are focusing on the state agency, asking them to do more to get utility companies to lower costs. But, an Eversource spokesperson said the key is understanding how the process of setting the rates works, and they’re controlled by the prices utility companies can find on the global market.

“The best price, the lowest price that we can get for our customers comes from the power generators," Eversource's Priscilla Ress said. "We take that bid, we take it to the DPU and say – 'this is what we have, this is what we’re offering, this is the lowest price that we found.' DPU then goes through the process and says – 'you did your due diligence; you crossed your T’s, you dotted your I’s' - and they will either approve or deny that rate.”

State lawmakers first sent a letter to the DPU in October asking them to reevaluate the rate increases before it went into effect this month. The department’s response noted global issues and many other factors impacting the market.

Lawmakers are now trying to find out where the money is going as residents pay more for their utilities.

“We asked them to please go back and revisit these increases that they gave and basically call in the utility companies and let them really take a good look at what’s going on here," Barrett said.

“I’m not a global market energy expert," Ress said. "But I can tell you that we don’t profit from it.”

Barrett, Mark and nearly 90 other representatives signed the newest letter and would like to see immediate action to lower energy costs.

“Moving forward, something that we’re looking at is filing a bill to try to change how the DPU sets its rates," Mark said. "To give more power to making sure that DPU is able to stop unnecessary increases and, in my opinion, to try and get back to a form where electricity is more regulated.”

While Eversource told Spectrum News 1 the DPU can’t make immediate changes because of the global rates, they’re advising customers to take cost saving measures and call the company to help locate resources for manage their bills.

“It’s a good thing to ask the question what more can we do," Ress said. "And probably the best thing we can do is right now at home as well, because in the meantime while we’re having these conversations that meter is running.”

Representatives agreed cost saving measures should be taken and can help many residents, but said they are still seeking any possibility of reducing energy rates.

Mass Save offers energy assessments and is a collaborative of Massachusetts' natural gas, electric utilities and energy efficiency service providers. Eversource also offers payment plans and assistance.

Massachusetts residents have the option of shopping for lower rates at Energy Switch. National Grid has resources as well and is going to host "Winter Customer Savings Webinars”. The letter also lists Unitil, which has heating assitance programs.