Massachusetts senators have advanced a broad energy proposal meant to ease pressure from high utility costs. Even so, the multibillion-dollar plan is expected to deliver savings over time rather than an immediate drop in monthly bills.
What happened?
On July 1, the Massachusetts Senate passed Bill S.3143 by a 32-8 vote, moving ahead with legislation senators say would reduce costs by $14 billion over the next decade, according to Athol Daily News.
Next, Senate and House negotiators will work to reconcile that measure with a separate House energy reform bill that projects about $9 billion in savings across the same 10-year period.
Senator Jo Comerford, D-Northampton, vice chair of the Senate Committee on Ways and Means, said the chamber designed its bill to confront mounting utility bills while preserving the state's climate commitments.
"This one focused, of course, on ways we can continue to keep our commitment while also recognizing that energy costs are just too high for constituents, and I believe the Senate's bill is a sophisticated, highly effective piece of legislation," she said.
The proposal comes amid a sharp rise in household energy costs in Massachusetts. Around a decade ago, a typical monthly electric bill ran about $130 to $160; now it is around $250. Winter gas bills have also jumped, from roughly $140 to more than $320.
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Why does it matter?
In 2024, energy accounted for about 3% of the median Massachusetts household's income, which was slightly above the national average, according to Athol Daily News.
The two chambers are split over the best way to produce that relief.
House lawmakers would cut roughly $1 billion from Mass Save, the utility-funded efficiency program that helps residents pay for upgrades that reduce energy use. Senate lawmakers left that funding intact and instead relied on financing and administrative changes.
Senator Michael Barrett, D-Lexington, has argued that high fossil fuel prices, not energy-efficiency programs, are the core problem.
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"What we can do is help people reduce their consumption of the thing that's become pricey," he said.
What's being done?
To lower costs, the Senate package uses several different strategies.
One of the biggest projected savings, Barrett said, would allow utilities to refinance some spending tied to grid modernization, storm recovery, and the gas transition at a lower cost. Senators estimate that it could save up to $7.1 billion over 10 years, Athol Daily News reported.
Senators also estimate that streamlining distribution planning could save another $1.79 billion.
Ending the Gas System Enhancement Program by 2030 is expected to produce about $1.46 billion in savings.
Comerford also supported amendments to direct the Department of Public Utilities to investigate utility profits, provide small towns with outside consultants when they review clean-energy project applications, and require every transmission company in Massachusetts to participate in ISO-NE so the attorney general can ask federal regulators to eliminate an extra utility payment known as the "RTO adder."
Before the bill can reach Governor Maura Healey, lawmakers in the House and Senate must agree on a final version.
As State Senator John Velis, D-Westfield, said, "There are opportunities to give our constituents some savings through this bill, but they're not going to be a tomorrow thing."
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