Massachusetts Regulators Open Investigation Into Utility Delivery Charges

The Massachusetts Department of Public Utilities (DPU) has opened an investigation to review all delivery charges on electric and gas utility bills to determine if charges should be eliminated, consolidated, or redesigned.

This review will consider whether to replace charges with fixed costs and whether to impose caps on monthly increases to curb rising bills.

According to the Boston Herald, officials will review whether to establish maximum limits on how much charges can increase from month to month. The goal is to identify which delivery charges fall under DPU regulation, explore possibilities to streamline charges, and limit month-to-month bill volatility while improving transparency.

“This thorough investigation will shed new light on ratemaking for the public,” DPU Chair Jeremy McDiarmid said in a statement to the Boston Herald. 

In a 26-page order announced at 5 p.m. on Monday, Dec. 15, the DPU said it was forging ahead “with deference to any statutory directives to the Department that the Legislature may adopt,”  with plans to “initiate a review of these matters now, using our existing authority, to provide relief to ratepayers as promptly as possible.” 

Several months ago, Massachusetts Gov. Maura Healey requested a review and pressed the DPU to investigate winter utility bill spikes. Healey has also proposed legislation that would reportedly save customers more than $13 billion and remove charges from bills. 

During the first phase of the investigation, the DPU will review all components on the delivery portion of electric and gas utility bills. The second phase will study utility bill design — increasing transparency for ratepayers when they receive their bills and creating more consistency across all companies.

According to an NBC10 Boston report, the DPU has reduced the budget for the Mass Save three-year plan so far this year. That plan required mitigation for last winter's gas bills and new electric rates to reduce winter costs for residents who use heat pumps.