Massachusetts utilities agree to waive interest charges for Healey’s winter energy bill relief plan
Gov. Maura Healey says utility companies operating in Massachusetts have agreed to waive all interest charges on rate deferrals offered as part of her initiative to lower electric and gas bills in February and March.
The governor’s office said National Grid, Eversource, Berkshire Gas and Unitil have all agreed to waive all interest charges related to the rate deferrals — following the push from Healey. Liberty Gas will also not defer any costs.
“Bills are too high and customers can’t wait for relief. That’s why I acted to get $180 million off winter electric bills and called on the utilities to help provide immediate relief — including waiving interest charges,” Healey said. “After seeing what they proposed, I again called on the utilities today to waive interest charges and they have agreed. Customers need relief and we’re going to continue to push for it.”
But Eversource says it had made the decision to not waive interest charges earlier in the day, before Healey made her call to all of the utility companies in the state.
“In order to align all winter rate relief efforts for our customers, Eversource made the decision earlier today to voluntarily forego all carrying or interest costs related to all upcoming bill reductions, consistent with the separate Winter Bill Stabilization line item we began providing our gas customers earlier this month,” an Eversource spokesperson told the Herald. “With the extreme cold temperatures expected to persist creating the potential for even higher usage, this is the appropriate step to take in support of customers.”
Healey had unveiled the initiative last week just before her State of the Commonwealth address, which uses $180 million in alternative compliance payments and rate deferrals to bring ratepayers what she says will be 25% savings on electric bills and 10% on gas bills.
Energy and Environmental Affairs (EEA) Secretary Rebecca Tepper’s office told the Herald last week that utility companies would be deferring roughly 10% of gas and electric bill payments through February and March with plans to recover those payments from ratepayers between May and October with interest.
Berkshire Gas says it worked collaboratively with the governor’s office, agreeing to waive the interest charges following Healey’s demands.
“Working collaboratively with the Healey‑Driscoll Administration and other Massachusetts utilities, customers of Berkshire Gas will see a rate reduction averaging approximately 16.5% during the winter’s coldest months, from February 1 through March 31,” Berkshire Gas Communications Manager Sarah Wall Fliotsos said in a statement.
“In addition to this rate adjustment, which will help reduce financial pressure on customers when energy use and heating needs are highest, Berkshire Gas continues to offer programs and services to help customers manage energy costs, access financial assistance, or arrange payment plans. For more information, please contact us at 800.292.5012,” she said.
Healey caught heavy criticism last week for utilizing the rate deferrals and passing the costs back on to the ratepayers. The three Republican candidates for governor, Republican state Rep. Marc Lombardo and the Massachusetts Fiscal Alliance, among others, all released scathing statements about Healey’s initiative, calling it a “scam.”
“Every day National Grid focuses on safety, reliability and affordability,” a spokesperson for National Grid told the Herald. “Energy policy requires a balanced approach of those interests and we remain committed to long‑term solutions that reduce volatility, improve transparency in what drives costs, and ensure safe, reliable service. National Grid is providing targeted winter bill relief in collaboration with the Healey‑Driscoll Administration and will not collect carrying charges tied to this deferral.”
The development comes as soaring energy costs remain perhaps the most crucial issue for the Healey re-election campaign to counter, something critics attribute to her climate-driven policies and her stoppage of two natural gas pipelines from coming to Massachusetts as attorney general — something she has gone back and forth on admitting to.
