Additional Coverage:
- Residents in one US state will soon see power bills drop 25% — but there’s a catch (marketrealist.com)
Massachusetts Residents to See Temporary Drop in Utility Bills, But a Payback Looms
Massachusetts residents are set to receive a welcome, albeit temporary, reprieve from high utility costs, with electricity bills projected to drop by 25% and gas bills by 10% in February and March. Governor Maura Healey announced the measure, stating that the state would fund a portion of the reductions as winter relief. However, the good news comes with a significant caveat: customers will eventually repay some of the deferred amounts later in the year, according to CBS News.
The announcement, made in a preview of Governor Healey’s State of the Commonwealth Address, follows her recent declaration of candidacy for re-election, with affordability becoming a central theme of her campaign. Of the 25% electricity rate decrease, 15% will be covered by the state, while energy companies will initially absorb the remaining 10%. Governor Healey stated that these rate reductions will cost the state $180 million, aiming to alleviate the burden of recent price hikes.
This relief comes as home heating costs are predicted to increase by approximately 8.7% this winter season, pushing the average bill to around $941, according to data from the National Energy Assistance Directors Association (NEADA). Furthermore, National Grid had proposed a nearly 10% rate hike for its gas customers in Massachusetts, slated to begin in 2027, a proposal Governor Healey has opposed.
While customers will enjoy lower bills in February and March, the deferred portions will need to be repaid during months when utility expenses are typically lower. A National Grid spokesperson confirmed to WBZ-TV that the company is collaborating with the governor to implement this “targeted winter relief effort.” National Grid gas customers are expected to save around $27 in each of those months, while electric customers could see savings of $60 per month for February and March.
However, the reductions are indeed temporary. CBS News reports that National Grid plans to collect the deferred gas bill amounts from customers between May and October, and the deferred electric amounts will be collected between April and December. This means that while residents will experience immediate relief, they should anticipate higher bills later in the year to offset the current savings.