Massachusetts legislators have advanced two energy bills through separate chambers this year that aim to reduce electricity costs and improve grid reliability. The measures include provisions for flexible interconnection processes, a retail energy storage program, and streamlined permitting for residential solar installations. These reforms are designed to reduce regulatory barriers and encourage residents and businesses to adopt rooftop solar and other distributed energy resources.
As House and Senate negotiators work to reconcile differences between the two bills before final passage, advocacy groups have raised concerns about provisions mandating new fixed charges on utility bills. Currently, most utility charges are volumetric, meaning customers pay based on consumption levels. The proposed fixed charges would require customers to pay certain fees regardless of electricity usage, effectively shifting costs from consumption-based pricing to flat fees.
Analysis of utility data indicates this approach could have disparate impacts across customer groups. Reviews of billing information from Eversource, which serves approximately 1.4 million state residents, and National Grid, serving 1.3 million customers, show that low-usage customers would face bill increases while high-usage customers would see reductions. This structure would effectively require smaller energy consumers to subsidize larger users.
Fixed charges could also reduce financial incentives for customers to invest in cost-saving measures. When bills include substantial fixed components, reducing electricity consumption through solar installation, battery storage, or efficiency improvements yields smaller savings, potentially discouraging such investments.
The state’s Department of Public Utilities launched a comprehensive review of utility delivery charges in late 2025, with diverse stakeholder groups submitting comments expressing concerns about potential fixed charge increases. The DPU has indicated it will carefully evaluate the issue before making decisions. Observers have urged lawmakers to allow the regulatory process to proceed rather than mandate specific outcomes through legislation.
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