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The following was submitted by the Office of Rep. Michael S. Day:
Rep. Michael S. Day and his colleagues in the House of Representatives recently passed energy affordability legislation that would result in over $9 billion in savings for utility ratepayers over the next 10 years.
The bill maintains critical energy efficiency programs, while slashing administrative and public relations expenditures, saving rate payers over one billion dollars this year alone. While focused on providing utility bill relief to Massachusetts residents, it also maintains Massachusetts’ aggressive climate goals and benchmarks.
“Two things are clear: we cannot continue to afford the skyrocketing utilities costs we are facing over the past several months and Massachusetts must continue to be a leader in combating climate change regardless of what we hear from Washington,” said Day. “Yesterday I was proud to join with my colleagues in supporting legislation that strikes this difficult balance.”
In an effort to lower energy prices in the near term, despite volatile gas and electricity prices, the House bill:
• Reduces surcharges imposed on ratepayers to fund state mandated energy efficiency programs.
This reduces Mass Save’s budget by $1 billion resulting in immediate ratepayer savings. Cuts are narrowly focused on the plan’s marketing, advertising and administrative allocations.
• Redirects funds paid by electric companies who are not in compliance with Massachusetts’ climate goals back into the pockets of rate payers.
• Lowers net metering credit amounts, which are a significant surcharge on electric bills.
• Ensures distribution companies and gas companies to provide discounted rates for low-income customers and eligible moderate-income customers.
• Mandates that any standard residential default service rates cannot be changed more frequently than once every six months.
“As residents across Massachusetts face sky-high heating bills amid another brutal winter, this legislation is proof of the House’s commitment to bringing costs down by cutting unnecessary spending, by putting money back in residents’ pockets, and through energy diversification. While the Trump Administration continues to attack clean energy projects on behalf of the fossil fuel industry, the House understands that energy diversification is the best that the Commonwealth has to cut costs for ratepayers in the long term,” said House Speaker Ronald J. Mariano.
• Establishes an electric rates task force to advise and make recommendations on the current and future cost of electricity in the Commonwealth with a report due by Sept. 30, 2027.
The House bill also brings more energy onto the grid and protects the workforce during the transition to clean energy.
The bill:
• Expands the Commonwealth’s energy procurement authority by authorizing the Department of Energy Resources (DOER) to competitively solicit energy services and negotiate and enter into long term contracts.
• Requires DOER to establish a state-led offshore wind pre-development and project acceleration program to enable the Commonwealth to partner with offshore wind developers to further the Commonwealth’s goals. The bill also extends from June 30, 2027 to June 30, 2029 the deadline for cost-effective long-term contracts for offshore wind energy generation.
• Allows DOER to develop a statewide energy storage incentive program to encourage the continued development of energy storage resources connected to the electric distribution system.
• Allows for smart solar permitting to get more projects online faster.
• Opens the door for clean, low-cost small nuclear power generation by removing out dated red tape. (Removes barriers for nuclear energy by repealing Chapter 503 of the acts of 1982, which established requirements for voter approval and legislative certification of any new nuclear power plant or any facility for the disposal or storage of low level radioactive waste in the Commonwealth.)
• Allows for high voltage transmission lines on state highways.
• Requires labor peace agreements for geothermal energy projects to help support and create jobs, adds prevailing wage requirements for work on thermal energy networks and requires transition plans for gas workers during the transition to clean energy.
The House bill also addresses predatory practices by certain suppliers, which impact consumers while certain utilities benefit through business practices that result in higher utility costs.
The bill:
• Creates a real-time, online retail residential customer bill assessment dashboard with: explanations of customer bill components; and an analysis of the benefits of certain programs, procurements and investments.
• Adjusts the reporting requirements for electric and gas companies, transmission companies, distribution companies, suppliers and aggregators and suppliers of natural gas to require quarterly reporting.
• Allows municipalities to opt out of competitive electric supply.
• Requires utility audits and approvals for asset condition projects that are projected to cost more than $25 million.
• Requires gas companies to implement default budget billing for residential customers.
The bill passed the House of Representatives 128-27 and now goes to the Senate for consideration.
