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Choice State's Dept. Of Energy Petitions Regulator To Default All Non-shopping Customers To Time Of Use Default Service Rate, On Opt-out Basis
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The Massachusetts Department of Energy Resources has petitioned the Massachusetts Department Of Public Utilities to open an investigation of time-varying electricity rates, with DOER proposing the implementation of a default, opt-out time-of-use (TOU) rate for basic electricity service (default service) customers
DOER seeks implementation of default TOU rates for
basic service, for all basic service customers, "as soon as practicable," but no later than
August 1, 2028.
DOER's proposal for a TOU basic service rate, onto which customers would be defaulted with the ability to opt out, would be a two-tier TOU rate (peak and off peak) with a four-hour peak period of 4 PM to 8 PM, with the same peak period applicable to all EDCs and load zones
DOER does not propose an administrative peak-to-off-peak ratio, stating that the underlying cost drivers (in this case, supply) should determine the ratio
DOER proposes that shadow billing (TOU vs non-TOU) should be provided to "all customers" for a one-year period. DOER was not explicit as to this recommendation applying to customers on competitive supply
DOER also recommended that a "hold harmless" bill stabilization program be considered for potential adoption, under which low income customers would pay the lower of charges either under TOU rates or non-TOU rates for their specific bill, for a one-year period
DOER does not itself propose the specific basic service wholesale supply product(s) that should be procured in light of DOER's proposed TOU opt-out design for basic service rates. Rather, DOER recommends that the DPU should determine the appropriate approach for the EDCs to solicit wholesale supplier bids, and recommended that the DPU should choose between two
alternatives: (1) uniform pricing that the EDCs would use to calculate TOU pricing for
basic service customers, or (2) separate on-peak and off-peak pricing from wholesale suppliers
DOER noted that the majority of residential customers in Massachusetts
currently receive supply service from municipal aggregations or competitive retail suppliers (mostly the former), and not basic service
DOER does not propose to mandate that competitive retail suppliers offer TOU rates or that retail suppliers must default their competitive customers onto a TOU rate.
DOER noted that retail suppliers may offer TOU rates, including more complex TOU rates to those customers seeking an alternative to the basic service TOU rate, but further noted that retail supplier TOU offerings are dependent on retail suppliers being settled at ISO-NE on actual customer usage, and not load profiles. DOER thus urged the expeditious resolution of the DPU's recently opened investigation to allow load settlement with ISO-NE based on customer interval usage data collected by AMI (see background here)
DOER said that Eversource (Nstar) and National Grid estimate completing full AMI deployment by the end of 2027, with Unitil recently completing AMI deployment across its service territory
DPU Docket 26-62
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April 9, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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