It’s vital for people to be able to heat their homes in the winter, and state regulators say they’re working with gas companies to review delivery rates contributing to skyrocketing energy bills.
In a letter signed by 80 Massachusetts lawmakers, the Eversource bill of one unnamed resident was pointed out as an example of the financial burden being felt across the state.
"One resident saw their January Eversource bill climb to $449.91 — nearly $300 of which was attributed solely to supply costs," explained the letter to Department of Public Utilities Chair Jamie Van Nostrand. "Seniors and retirees have reached out in distress, questioning how Eversource can justify such exorbitant costs when Social Security benefits have only seen a modest 2% increase. Many are now facing an astonishing 27% increase for the coming heating season."
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The letter, dated Feb. 14, urges the DPU to take immediate action to reassess rate adjustments and review Eversource's pricing structure.
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The adjustment to natural gas rates for Eversource customers in Massachusetts that took effect on November range from 20-30%.
Eversource spokesperson William Hinkle explained that adjustment reflected a variety of factors, including the cost of natural gas on the supply side of the bill and on the delivery side, significant investments in safety and reliability projects to strengthen and improve service for their customers, and growth in energy efficiency programs and services. He added that much colder weather driving increased usage, coupled with the rate adjustments that took effect in November, are the primary factors impacting customers' current bills.
"This situation is an economic emergency," said Rep. Mike Connolly, who signed the letter to the DPU. "And when people open up a gas bill, and they are expecting it might be $100 or $200, and we're hearing $800, $900, $1,000, it's an absolute crisis."
"I think it's important to recognize that there are many factors that drive up electric costs, but we need to look at what's working now in the commonwealth and what is not working. What's not working now are the outrageous rates that the investor-owned companies are charging residents of the commonwealth," said Sen. Jake Oliveira, who is leading this push. "Having DPU take another look at these rate increases that have been approved can only help to hold these utility companies accountable."
Gov. Maura Healey also wrote to the DPU Chair calling for relief for utility customers.
"The DPU must proactively identify ways to reduce future price volatility for natural gas customers and make rate changes more transparent and predictable," wrote Healey. "At the same time, the gas utilities must do a better job getting customers into existing programs that help customers reduce bills and manage their costs."
"We don't want layaway for our energy costs. We want to be able to afford them," said Elijah DeSousa, administrator of Citizens Against Eversource, a Facebook group that initiated a petition to have the rate increases reversed. "Why should we trust them to do their better job properly the second time around when they didn't do it the first time around?"
"I don't think that fully adds up, and I think there is a little bit of scapegoating going on from the corporate sector, as well as from conservatives who are wanting to point the finger at our sustainability programs," said Connolly. "I believe serious questions need to be asked and answered about how Eversource could be making so much money on this gas delivery charge, and yet DPU is raising the rate even more."
In an email, a DPU spokesperson wrote, "We are reviewing the letters from the Governor and from various legislators and will respond soon. We have listened to ratepayers, and we will be working directly with the gas companies over the coming days to pursue revisions to their delivery rates to provide relief as soon as possible for their customers. Over the longer term, the DPU continues to make process in various dockets centered on energy affordability that will help low- and moderate-income households in paying their energy bill."
This week, Eversource is holding two webinars to answer questions about heating bills and provide information about financial assistance programs.
"We know that the high cost of energy is challenging for our customers, and we want to help them plan ahead, manage their energy use and overall cost as best as we can. We highly encourage customers who may need help paying their bill to take advantage of the many assistance programs available and we are here to work with all customers one-on-one to connect them with payment options and bill assistance programs — including our budget billing option that smooths out seasonal spikes by setting a predictable bill amount each month based on our customer's annual energy use," wrote Hinkle.
