Massachusetts Regulator Reduces Eversource’s Proposed Home-Heating Gas Rate Increase

The cost of home heating gas won't be as high as people expected this winter for approximately 300,000 Eversource gas customers in Massachusetts.

In September, Eversource announced it requested approval for a 13% increase in its winter rates for approximately 60% of its 500,000 customers.

On Wednesday, Oct. 29, the state Department of Public Utilities (DPU) announced that it had denied a significant portion of Eversource's proposed winter rate increase, saving customers about $45 million this winter.

“As a result of this decision, $45 million will not be added to [Eversource's] revenue requirement at this time, resulting in lower rates for customers,” the DPU wrote in a summary of its 43-page order shared with The Boston Globe.

According to The Boston Globe, the DPU's order applies to customers statewide whose homes were serviced by NSTAR before the entity merged into Eversource. The DPU has not yet decided on another segment of Eversource customers: the 200,000 Columbia Gas served before it merged with Eversource.

Eversource had asked for approval of a 17% increase for “legacy” Columbia customers. The request is still pending with the DPU. Although it's not official how much lower the rates will be for legacy NSTAR customers, the DPU said the cuts would be “significant.”

“The DPU made a significant cut to Eversource's NSTAR anticipated gas rate increase after finding that the company did not meet all of its required performance metrics,” said Jeremy McDiarmid, DPU chair, in a statement shared with The Boston Globe. 

These rates are set to take effect on Nov. 1.

A statement by Eversource questioned the DPU's decision: “Today's ruling is puzzling as it will result in a path of greater impacts for customers over the next year in favor of a near-term cut of a more nominal amount,” the company stated to The Boston Globe. 

In its response, Eversource argued it “met or exceeded all of those criteria relating to safety and reliability,” and that “certain customer satisfaction metrics were difficult to meet in light of external factors not fully within our control, particularly high energy prices caused by supply constraints.”