Massachusetts Gas and Electric Bills Decrease for Two Months with Catch

Governor Maura Healey announced a temporary reduction in gas and electric bills across Massachusetts. This decrease is set to take effect in February and March. However, customers will need to repay some or all of these savings later in the year.

Details of the Bill Reductions

Electricity bills will see a 25 percent reduction, while gas bills will drop by 10 percent. The total cost to the state for these reductions is estimated at $180 million, which will be covered through existing funding sources.

Impact on Utility Customers

• Electric customers will receive approximately $60 per month off their bills for February and March.
• Gas customers can expect a savings of about $27 per month during the same period.

The majority of the reductions will come from deferrals rather than permanent cuts. Specifically, 15 percent of the electric bill decrease will be funded by the state. The remaining 10 percent is underwritten by energy companies.

Repayment of Deferred Amounts

Customers will have to repay the deferred amounts when utility bills stabilize. Gas customers may need to repay the entire deferred amount between May and October. For electric customers, the repayment will occur gradually from April through December.

Response from Utility Providers

National Grid confirmed their collaboration with the governor’s office to implement this targeted winter relief strategy. They emphasized that the reductions would result in lower energy bills for customers during the specified months, even though they are essentially deferred costs.

Eversource has also been approached for further details about their billing adjustments. They noted that the specific impact on customer bills may vary based on energy usage and weather conditions.

Future Rate Adjustments

This announcement comes in the wake of a proposed rate hike from National Grid, which aimed to increase gas rates by nearly 10 percent starting in 2027. Governor Healey has expressed her opposition to this rate increase.

Overall, while Massachusetts customers will benefit from temporary reductions in their gas and electric bills, the plan includes future repayment obligations that they will need to consider.