Healey: DPU ‘must at immediately’ to relieve spike in natural gas prices

In the face of rising utility costs and stubborn inflationary pressures, Massachusetts Gov. Maura Healey is calling on the Department of Public Utilities to take immediate action to bring energy prices down.

Bay State families are struggling to handle an “unexpected rate hike” that has sent their natural gas bills through the roof, and according to Healey it comes as they were already dealing with increased costs for groceries, gasoline, and other everyday goods. The governor says that she is “deeply troubled” by what she’s hearing.

“People did not plan for these extraordinary utility rate increases, and they can only do so much to stretch a budget. The DPU must act immediately to provide rate relief to customers in this heating season,” Healey said in a letter sent Sunday to DPU Chair Jamie Van Nostrand.

The governor said that she understands Van Nostrand is not responsible for the global energy market, nor can she control the fact that people use more gas in winter to heat their homes, but nevertheless something must be done to “help consumers reduce bills and avoid future large, unanticipated price spikes like this.”

Healey is calling on the DPU to “proactively identify ways to reduce future price volatility for natural gas customers and make rate changes more transparent and predictable,” as the agency apparently did as recently as two-years ago to address a spike in electricity costs.

“In 2023, the DPU took steps to stabilize electricity rates after a run-up in electricity supply prices occurred the prior year. The DPU must bring that same focus and intentionality to insulating customers from these sudden gas bill spikes,” she wrote.

The agency must also, according to the governor, “prioritize and accelerate its on-going work to address energy affordability,” including expansion of discount programs and rate reductions. At the same time, Healey says, the utility companies need to do a better job educating consumers about state programs available to help them keep the heat on.

“The utilities must make it easier for energy consumers to get the help they need in a way that works for them and gets results,” she wrote.

The governor took the occasion to remind Bay State ratepayers that while the cold weather lasts the law protects them from seeing their heat turned off, no matter how much their bills might be.

“It is also imperative that energy consumers know their rights, including that they cannot have their utility service shut off during the winter months. Staying warm is critical for everyone’s health and safety,” she said.

Healey’s letter comes after dozens of state lawmakers demanded a probe into rising utility rates in response to complaints from their constituents.

Lawmakers, in their own letter released Friday, highlighted how at least one of their constituents reported seeing their January Eversource bill climb to $449.91, “nearly $300 of which was attributed solely to supply costs.”

“Additional residents in affordable housing complexes have voiced deep concern over excessive delivery charges and fees,” they wrote, “noting that they live on a fixed income and cannot afford these relentless rate hikes.”

Eversource officials attribute “higher natural gas usage, resulting from the colder temperatures” as the “primary driver” for the increases confronting customers.

The state Department of Public Utilities approved an Eversource request last November to increase customers’ natural gas bills by 20% to 30%. The utility company typically adjusts the natural gas supply rate twice a year, in May and November, and when “supply costs increase or decrease by more than 5%, officials have said.

Officials adjusted the rate on Feb. 1 as the cost of gas that “Eversource purchases from the market significantly increased in January.”

“The dramatic increase in usage is coupled with recent rate adjustments that took effect on November 1, which are also impacting customers’ current bills,” the company has said.

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