Following the passage of separate proposals by the State Senate and House of Representatives to lower energy bills for Massachusetts ratepayers, a committee of negotiators from each chamber has been appointed to craft a compromise bill. Senator Mike Barrett, the lead sponsor of the Senate bill, will serve as Senate chair of the six-person conference committee.
The Senate bill, An Act to Save People Money, Repair the Climate and Grow the Economy, is estimated to save ratepayers more than $14 billion over the next 10 years. Barrett called it an “everything but the kitchen sink” approach that provides a “large toolbox” of options for cutting costs.
“The systems run by the gas and electric companies are sprawling and complicated,” Barrett said. “The Senate sees no greedy masterminds behind the scenes, but we do see pockets of overspending and overcharging that have accumulated over the years. This bill goes after those excesses, saves people real money, and makes sure no one loses heat or electricity when they need it most.”
One example: The bill phases out the Gas System Enhancement Plan (GSEP) by ratcheting down “accelerated recovery” of costs that utilities collect from ratepayers — a measure expected to save $1.46 billion. This builds on a recent Department of Public Utilities decision to lower the amount of money utilities can collect from ratepayers through GSEP.
“What the Senate does, in effect, is pick up where the DPU leaves off and continue the same downward progression to zero by the end of 2030,” Barrett said. “The companies have taken an opportunity to redefine even routine replacements as GSEP replacements, so they can earn a little extra money at our expense.”
The bill also targets abusive door-to-door sales by so-called competitive energy suppliers, saving customers roughly $650 million. It subjects competitive suppliers to additional regulations, strengthens consumer protections, and grants a local option for cities and towns to prohibit competitive suppliers from doing business there.
To smooth out price spikes that hit during periods of peak demand, the bill also prioritizes energy efficiency to reduce consumption. It strengthens Mass Save, the state’s energy efficiency program, by making it more accountable and effective.
Another focus: Standing up for New England energy independence by promoting solar, wind, and other clean energy sources. The bill streamlines the solar permitting process, lifts caps on the number of solar projects cities and towns can authorize, and legalizes plug-in solar systems. It also extends permits and increases flexibility in clean energy deals, especially for offshore wind.
During the debate, Senators adopted an amendment to the bill that requires data center developers to meet public health, community engagement, and energy affordability standards before they can receive tax credits.
Barrett will serve alongside Senators Cindy Creem and Bruce Tarr on the conference committee. He is confident that the final package will include strong provisions that provide relief for ratepayers.