DiDomenico Votes to Save Ratepayers Money on Energy Costs
New law would lower monthly bills, rein in utility overspending, and preserve clean energy progress
BOSTON— Senator DiDomenico and his colleagues in the Massachusetts Senate passed energy affordability legislation that is projected to deliver billions in savings to ratepayers across the Commonwealth while keeping Massachusetts on track to meet its climate goals.
The bill, S.3143, An Act to save people money, repair the climate, and grow the economy, tackles rising energy costs head-on by cutting unnecessary fees, evening out price spikes that hit households during high-demand months, cracking down on predatory sales practices by energy suppliers, and steering the state away from expensive infrastructure projects that don’t deliver value for ratepayers.
“Energy bills have been too high in recent years and for people across my district, especially those with lower income, this can force impossible decisions on people like paying for the heat or paying for groceries. I am thrilled to move this legislation forward that will bring down energy costs and accelerate our state’s transition to renewable energy with less pollution,” said Senator Sal DiDomenico. “There has been a false narrative that we can either lower ratepayer bills or advance clean energy, when the reality has always been that you need one to do the other. This bill does exactly that, by marrying efficiency programs and clean energy development with customer protections and cutting red tape, we are continuing our state’s climate commitments and ensuring electricity and heat is affordable for everyone.”
The legislation targets the biggest cost drivers that Massachusetts residents face on their monthly bills, including fees, surcharges, and rate adjustments.
Cutting Out the Intermediary on Energy Purchasing — Up to $420 Million in Savings
Right now, utility companies act as intermediaries when Massachusetts buys clean energy, and they collect a fee for that role. This bill lets the state negotiate those contracts directly, cutting out the fee and saving ratepayers up to $420 million.
Evening Out Seasonal Price Spikes — $780 Million in Savings
Energy prices for customers on basic service contracts are currently locked in every six months, which can cause sudden jumps in what residents pay. The bill gives regulators more flexibility in how and when prices are set, which is expected to save ratepayers $780 million.
Reviewing Hidden Charges That Spike During Peak Months — $750 Million in Savings
Bills often include separate ‘reconciling charges’ that aren't reviewed consistently. The bill requires regulators to reform these charges, particularly ones that spike during high-demand months, which will save residents an estimated $750 million.
Investigating Markups on Electric Bills — Up to $1 Billion in Savings
A new state investigation will examine whether customers have been overcharged when utilities didn’t actively shop for the best electricity rates. Between 2015 and 2024, Massachusetts customers may have paid an estimated $3.4 billion more than necessary. This investigation could lead to savings of up to $1 billion, or roughly $12 a month for a typical household.
Cracking Down on Predatory Energy Suppliers — More Than $650 Million in Savings
So-called ‘competitive’ energy suppliers have used aggressive sales tactics to lure customers in with low introductory rates only to sharply raise prices later. Over the past decade, customers who switched to these suppliers paid an estimated $738.7 million more than if they’d simply stayed with their regular utility. The bill strengthens consumer protections and enforcement, to save ratepayers a projected $650 million.
Helping Utilities Pay Down Debt Without Passing It to Customers — Up to $7.1 Billion in Savings
The bill allows utility companies to finance certain costs, like those from storm recovery and grid upgrades, at lower interest rates instead of borrowing at higher costs and passing those costs on to residents. This alone could save ratepayers up to $7.1 billion over 10 years.
Streamlining the Gas Pipe Repair Program — $1.46 Billion in Savings
The Gas System Enhancement Plan, a program meant to incentivize utilities to fix aging, leak-prone gas pipes, has ballooned in cost, making up an estimated eight to 11 per cent of a typical gas bill, while allowing companies to skip standard cost reviews. The bill narrows the program to focus only on pipes that actually need repair, phases it out by 2030, and restores normal oversight, saving ratepayers an estimated $1.46 billion.
Making Solar and Clean Energy More Affordable Up Front — $540 Million in Savings
For homeowners who want to install solar panels or battery storage but can’t afford the upfront cost, the bill creates a way to finance that equipment through their utility bill over time. By doing so, it potentially saves consumers $540 million as more households take advantage of it.
Cutting Red Tape in Energy Planning — $1.7 Billion in Savings
Utility companies currently plan infrastructure projects through multiple, disconnected approval processes, which can overwhelm regulators and often lead to duplicated or unnecessary spending. The bill requires a single, streamlined planning process, helping avoid wasteful projects and saving residents an estimated $1.7 billion.
Strengthening the Mass Save Program
The legislation strengthens the Mass Save program, which helps residents weatherize homes and upgrade to energy-efficient equipment, by making it more accountable and effective. The bill caps the program’s administrative spending, removes a requirement that utility companies automatically receive bonus payments, and creates a new oversight board to keep the program focused on results.
Protecting Massachusetts’ Climate Leadership
The bill preserves the state’s commitment to clean energy by adjusting the pace of certain renewable energy purchasing requirements to reflect federal setbacks to offshore wind, supporting renewable natural gas made from food and organic waste, and allowing outside investment in upgrading the electric grid to handle growing demand.
Having passed both chambers of the Legislature, the bill will now go through a reconciliation process to resolve differences before a final version is sent to the Governor.
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