Massachusetts official lays out wide-ranging energy affordability plan, projects up to $1.9 billion in savings

Undersecretary Mike Judge said the governor's Energy Affordability Infrastructure and Innovation Act is designed to lower customer bills by tackling the largest drivers of rates: transmission and distribution infrastructure spending and volatile natural gas prices. "There's not any one thing that is going to dramatically lower cost," Judge said, adding the package takes "a holistic approach" that combines procurement, planning and consumer protections.

Judge told the Environmental Justice Council the administration's analysis shows infrastructure investments account for a majority of the last decade's rate increases and that the state remains dependent on natural gas for about half or more of its electricity and heating. To reduce costs and volatility, the bill would move long-term clean-energy procurement authority away from utilities and give the Department of Energy Resources (DOER) a larger role in contracting.

The shift to state-led procurement aims to remove what Judge called a utility "remuneration" layer that adds to contract costs. "We're the only state in the country that does that," he said, arguing direct state contracting could lower expenses and give the state more flexibility in the types and timing of procurements.

The bill would also allow the Department of Public Utilities (DPU) to require more comprehensive distribution-system planning, streamline interconnection rules through "flexible interconnection," and consolidate overlapping planning processes to avoid inefficient spending. Judge described the net effect as avoiding unnecessary infrastructure investments and reducing bill volatility.

Judge outlined proposals to reform existing programs that are paid for through customer bills. They include modifying future net-metering credit values, phasing out the Alternative Portfolio Standard with transition protections, and restructuring Mass Save to reduce administrative costs through competitive statewide procurements and a centralized consumer data platform.

On consumer protections and market practices, Judge said the package would strengthen DPU enforcement over residential competitive suppliers by requiring licensing and bonding, raising maximum civil penalties, and allowing direct restitution to harmed customers. The bill would limit product features that have led to consumer harm, including bans on automatic renewals without written consent, prohibitions on switching customers to variable-rate contracts, restrictions on early-termination fees and tighter rules to prevent low-value "green" products from being misrepresented.

Judge also proposed new approaches to financing large, long-lived energy investments. Ideas include on-bill financing for energy-efficiency and electrification measures and authorizing lower-cost utility debt financing so that the cost of measures aligns better with their long-term benefits. "When you invest in energy efficiency, those measures provide benefits for 10, 15, 20 years," he said.

Among the more novel provisions, the bill would enable certain gas utilities to develop and operate networked geothermal systems that serve large energy users such as college campuses and hospitals, with regulatory oversight and transparent customer rates. Judge said the goal is to remove upfront capital barriers and accelerate efficient electric heating adoption while protecting other customers from cross-subsidization.

Judge estimated the combined measures could save up to $1.9 billion over 10 years by reducing unnecessary infrastructure spending, reforming program administration and curbing abusive supplier practices. He described progress since 2012 in adding roughly 6,700 megawatts of clean generating capacity and said the state is now obtaining a significant share of annual consumption from clean energy sources.

On the legislative calendar, Judge said a version advanced by the House Telecommunications, Utilities and Energy Committee on Nov. 12 includes many of the governor's provisions and currently sits with House Ways and Means; the House and Senate are working on separate proposals and timing remains uncertain. "We expect that things could happen quickly in the new year," he said.

The presentation prompted questions from council members about municipal light plants, competing regulatory frameworks and how utility-led geothermal projects would interact with private installers and customers. Judge replied municipal light plants are regulated differently in some respects and noted DOER could partner with municipal utilities on procurements.

The presentation and question period concluded as the council moved on to other agenda items and public comments. The administration provided online materials and links to more detailed bill text and programmatic analysis for stakeholders and the public.