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Retail Energy Regulator To Review Electric, Gas Rates To Contain Costs, Reduce Bill Volatility
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The Massachusetts DPU has opened a broad investigation to review electric and natural gas rates in order to contain customer costs,
reduce bill volatility, and to increase electric and gas utility bill transparency and accessibility.
While much of the focus is on distribution rates, the proceeding is not explicitly limited to such, and the DPU has broadly invited comments on affordability
The DPU itself noted that it recently ordered the deferral of natural gas supply costs due to affordability concerns (see details here)
Notably, the DPU states that it will consider the feasibility of creating a monthly cap on the amount that a customer's "charges" may vary from one month to the next month
The DPU will consider whether such a monthly limit on rate variances can, "moderat[e] bill increases while avoiding excessive cost recovery deferrals."
Additionally, a focus of the DPU's new investigation is reconciliation mechanisms
Massachusetts is unique in that the reconciled supply costs of electricity basic service are not currently bypassable.
The DPU asks: "What other policies should the Department evaluate to reduce bill
volatility?"
The DPU broadly asks: "What other legislative or regulatory changes, if any, are necessary to
ensure that gas and electric rates are affordable and aligned with the
Commonwealth’s energy policies?"
The DPU's review will also consider lowering the amount paid in credits to net metering customers. Massachusetts currently uses a full retail rate for net metering compensation
A second phase of the DPU's review will consider a comprehensive redesign of Massachusetts utility bills, "to enhance customer knowledge, agency, and responsiveness to price and policy signals."
The bill redesign proceeding could serve as a forum for various retail market bill changes sought by certain stakeholders, including shadow billing
The DPU also made note of recent utility billing problems
"Recent experience -- including multiple, significant
examples of delayed or inaccurate bills -- shows that the utilities are not consistently meeting
their obligations. In a separate investigation, the Department will examine the utilities’ current
practices and recent performance in customer billing and determine whether the Department’s
current billing and termination regulations are sufficient to ensure consumer protection," the DPU said
Discussing its efforts to facilitate TOU rates, the DPU reported that it will soon commence a new
proceeding to investigate the reporting of AMI interval data to ISO New England for load settlement
and capacity tag calculations, accelerated switching, and dynamic rate-ready time-varying rates offered by
retail suppliers and municipal aggregators
Docket 25-200
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December 15, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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