A Democratic proposal in the Massachusetts Senate is moving forward as lawmakers try to respond to steep gas and electric bills hitting households across the state.
Supporters say the plan could save ratepayers more than $14 billion over the next 10 years by changing utility cost-recovery rules and cutting back on costly gas infrastructure spending.
What's happening?
The bill cleared the Senate Ways and Means Committee last week and is lined up for debate Wednesday, WBUR reported.
Unlike a House bill approved in February, the Senate version relies less on reducing energy efficiency and electrification initiative Mass Save spending.
Recent utility filings show how much customer costs have grown. A typical monthly electric bill rose from about $130 a decade ago to roughly $250 at its peak, while a standard winter gas bill climbed from around $140 to more than $320.
Sen. Michael Barrett, a Lexington Democrat who helped design the Senate plan, said lawmakers are examining "a number of issues involving the gas and electric utilities" because "that is where the money is," according to WBUR.
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The proposal would phase out the Gas System Enhancement Program by 2030, cap Mass Save planning and administrative expenses at 5%, and allow utilities to refinance certain large costs through securitization, which supporters say offers the biggest savings potential.
Why does it matter?
The issue is especially pressing because Massachusetts already ranks among the states with the highest energy costs, and stronger summer demand for air conditioning could drive electric bills higher in the near term.
Senate President Karen Spilka cast the bill as a way to relieve pressure on households without giving up on the state's climate objectives, saying it "would make real and tangible changes when people open up their energy bills every month," WBUR reported.
Keeping much of Mass Save intact could allow households to continue upgrading insulation, heating systems, and appliances to reduce energy waste. Over time, those improvements can lower bills and cut pollution tied to power use.
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Meanwhile, slowing spending on gas pipe replacement could ease charges that critics say have pushed customer bills upward, while utilities would still be responsible for maintaining safe service.
What's being done?
The Senate package lists six major paths to savings, according to WBUR. Among them are up to $7.1 billion from refinancing grid modernization, storm recovery, and gas transition expenses; $1.8 billion from simplified distribution planning; and $1.5 billion from ending GSEP.
The measure also calls for a state review of markups in basic service procurements, removes the six-month cap on certain electricity supply contracts, and directs regulators to study rate changes to lower bills.
Backers say securitization is intended for limited use rather than as a broad financing tool. Barrett said the state should use it "very carefully, rarely," WBUR reported, giving regulators and utilities a way to replace some higher-cost financing with lower-cost debt in unusual situations.
The bill is still only a proposal, and House and Senate leaders must work out the differences between their versions before any of it can become law.
Barrett argued that meaningful savings will require scrutiny of the utilities themselves, saying, "If you want to save people serious money, you do have to take a fair but tough look again at the gas and electric utilities."
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