Mass. utility regulator begins probe into volatile gas and electric bills

The Department of Public Utilities on Monday opened an investigation into all delivery charges on electric and gas bills in Massachusetts. The goal, the department said in a statement, is to "examine the causes of bill volatility" and help customers "take greater control over their energy bills."

The probe comes at the request of Gov. Maura Healey, and follows other department actions aimed at reducing energy costs. So far this year, the state has tried to save ratepayers money by cutting some of the budget for Mass Save, reducing winter gas and electric bills, reining in gas utility spending on pipelines and establishing a new lower rate for heat pump users.

The new investigation by the Department of Public Utilities will explore whether to establish limits on how much utility bill charges can increase from month to month, and whether certain charges should be eliminated, consolidated or "redesigned as a fixed charge." Most charges on gas and electric bills are currently based on the amount of gas or electricity customers use.

“This thorough investigation will shed new light on ratemaking for the public,” said department chair Jeremy McDiarmid in a statement. “We’re eager to continue the momentum built this year to help keep bills in check and put utility customers first.”

The effort to make gas and electric bills more affordable comes as residents and businesses cope with rising energy expenses that are contributing to a higher cost of living in Massachusetts.

"Last winter, customers saw their bills spike, with some paying 50% more than they did the previous winter," Healey wrote in an Oct. 14 letter to the department. "Families and businesses cannot afford, nor budget for, these unexpected, high costs."

Healey has also filed legislation aimed at making energy affordable, though her bill has yet to advance out of the Telecommunications, Utilities and Energy Committee. Lawmakers appear torn between the challenges of address rising consumer costs, meeting climate targets by slashing planet-warming emissions and delivering on infrastructure demands required to keep energy systems safe and reliable.

In its 26-page order announced Monday evening, the Department of Public Utilities said the investigation will have two phases. In the first, the department will examine all charges in the delivery portion of gas and electric bills. This includes the fixed customer charge and the cost of maintaining pipelines or poles and wires, as well as rates that allow utilities to recover costs required by state and federal policies, and costs necessary to maintain safe and reliable infrastructure.

The first phase will also examine the state's net metering program, which compensates homes and businesses that have solar panels for the excess electricity they send to the grid. Massachusetts has some of the highest net-metering recovery charges in the country, and the department said it is open to adjusting those rates.

The second phase of the investigation will examine the design of utility bills, with an eye toward making bills more transparent and consistent across companies.