Electricity and natural gas prices in the state have outpaced inflation, prompting the state’s Department of Public Utilities to investigate charges on utility bills to look at price “volatility.”
The inquiry, announced this week, will also look at how bills are designed, their accuracy and consider whether to limit how much specific charges can increase each month.
“Last winter, customers saw their bills spike, with some paying 50% more than they did the previous winter,” Gov. Maura Healey said in a letter to the DPU this fall requesting an investigation. “Families and businesses cannot afford, nor budget for, these unexpected, high costs.”
The investigation announcement comes as many expect home heating costs to increase this winter.
An estimate from the National Energy Assistance Directors Association puts the average home heating cost this winter at $1,000, a 9% uptick from last winter.
In Massachusetts, energy prices are already higher than national averages. Residential natural gas prices are nearly 6% higher and residential electricity 74% higher, according to data from the U.S. Energy Information Administration.
In 2023, the state had the third-highest residential electricity price in the country, according to the EIA.
Residential natural gas prices in Massachusetts have roughly doubled in the state since 2020, while electricity prices have also increased by about 50% in the same time period, EIA data shows.
The DPU’s inquiry will examine all charges on utility bills. “The investigation we opened today will work to assist customers across the state and make bills more transparent and understandable,” DPU Commissioner Staci Rubin said in a statement.
Aging infrastructure across New England is one cost driver, the DPU wrote in its recent order.
For example, Eversource is trying to build a 5.3-mile, 16-inch diameter gas pipeline from Longmeadow into Springfield that the company says it needs as a backup for its 70-year-old existing pipeline.
The company has to submit additional information to the state about the project before it can possibly move forward. An Eversource spokesperson said earlier this month that the company planned to submit its supplemental report to the state by the end of the year.
