UPDATE: National Grid has just announced a controversial proposal to increase its natural gas base rates by an alarming 10 percent, exacerbating the ongoing energy affordability crisis in Massachusetts. This urgent development follows a staggering request from Liberty Utilities to hike rates by an astonishing 55 percent for customers in the Fall River area.
The proposed rate increase comes at a time when households are already struggling with soaring energy costs, driven largely by an over-reliance on expensive fossil fuels. Cynthia Mendes, the Massachusetts director of Clean Water Action, emphasizes that these hikes disproportionately impact environmental justice communities, where residents spend a significant share of their income on energy bills.
“This strategy from National Grid prioritizes fossil fuel distribution when Massachusetts desperately needs to decarbonize,” Mendes stated. “It amounts to fiscal malfeasance amidst rising costs for everyday residents.”
In August 2023, the Department of Public Utilities issued a significant policy shift, ending ratepayer-funded subsidies for new gas line extensions. New customers must now bear the entire connection cost, averaging around $9,000 per home. This move is part of a broader strategy aimed at achieving net-zero carbon emissions by 2050.
With the proposal now on the table, regulators face mounting pressure to reconsider the utility’s heavy reliance on outdated gas infrastructure, including pipes dating back to before 1970. Experts argue that maintaining such infrastructure will not stabilize gas prices, which have been notoriously volatile for Massachusetts residents.
Instead of investing in new gas distribution, energy advocates like Marvin Berkowitz from Needham urge regulators to mandate a rapid transition to proven technologies such as heat pumps. These alternatives could significantly reduce emissions, combat climate disruption, and stabilize long-term energy costs.
The implications of this proposed rate hike are profound. As Massachusetts leaders scramble to address rising energy costs, the need for a shift towards clean energy investments becomes increasingly urgent. According to reports, initiatives like Mass Save have generated over $34 billion in benefits since 2010, creating thousands of local jobs while reducing reliance on polluting gas.
As this situation develops, the pressing question remains: what will state regulators do next? With the public’s financial wellbeing hanging in the balance, the response will be critical in shaping the future of energy in Massachusetts. Stay tuned for more updates on this unfolding story.
