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Utility Warns Policies Focusing On Lowering Wholesale Prices May Not Result In Customer Savings, But Rather "Higher Profits" For Retail Suppliers, Suggests Near-Term Review Of Retail Market
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In comments filed in the Massachusetts DPU's general investigation of energy rates, Eversource Energy said that, "reductions in wholesale market prices may lead to higher profits for retail suppliers instead of lower costs for their customer."
Eversource was specifically addressing claims that higher compensation for net metered customers would benefit customers through lower wholesale prices, due to excess customer-sited generation depressing wholesale prices
Eversource said, in this context about net metering, "claims about wholesale price suppression leading to reduced costs for retail electric customers fail to acknowledge that in a restructured electricity market, reductions in wholesale market prices may lead to higher profits for retail suppliers instead of lower costs for their customer."
Eversource further devoted part of its comments filed with the DPU to reciting previously reported data from the Massachusetts Attorney General which has stated that customers who switched to competitive supply paid $87.4M more than if they had stayed on Basic Service (default service) from July 2024 to June 2025
Eversource said, "One area related to supply costs that may warrant additional near-term review is the role of the competitive supply market."
Eversource said, "According to the Attorney General’s analysis, Eversource’s Basic Service rate is still well below average competitive supply rates".
Eversource generally does not favor a move away from the current full requirements product for basic service
Eversource said that opt-in TOU default service rates may be worthy of consideration
In separately filed comments, National Grid generally recommended increasing the flexibility in the basic service (default service)
procurement requirements, especially via changes intended to reduce risk premiums
However, in regards to specific recommendations concerning basic service, National Grid's sole specific recommendation is removing the current statutory barriers prohibiting EDCs from procuring gas capacity
through long-term contracts. National Grid said that expansion of gas supplies, made possible through long-term contracts entered into by the EDCs, would lower wholesale electricity prices given the ISO-NE market's gas-reliant portfolio, and thus would lower basic service rates
Docket D.P.U. 25-200
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April 16, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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