Massachusetts DPU cuts Mass Save budget by $500 million to reduce heating bills
The Massachusetts Department of Public Utilities slashed the Mass Save budget by $500 million in an order put out Friday afternoon.
What is Mass Save?
Mass Save is a state program that gives consumers rebates for making energy efficient repairs to their homes – like insulation, heat pumps, and energy efficient appliances.
The program has historically not been taken advantage of by renters and landlords – an issue the current 2025-2027 plan aims to change.
Given the stress statewide over skyrocketing heating bills in recent months, the proposed $5 billion three year Mass Save program – its most expensive yet – was in jeopardy.
That's because Mass Save is paid for through an "energy efficiency" charge on your electric bill or baked into the delivery fee on your gas bill. It's not the only reason by any means, but it is one factor in why your bill costs so much.
For that reason, the DPU cut $500 million of the budget Friday. The DPU stated in its order, "[t]he responsibility of weighing the bill impacts of these Three‑Year Plans rests squarely with the Department and we take our responsibility as the stewards of ratepayer funds seriously."
Cuts expected to lower gas bills
Utilities will now have to reduce their budgets accordingly, which is expected to lower your bill. In time, the companies are also expected to add an energy efficiency cost line to gas bills – so customers can see the exact amount they are paying into the program.
"The reduction from the DPU for the Mass Save 2025-2027 Plan would lower total residential program budgets by 25% for gas and 15% for electric," the release reads. "The decrease will vary by utility provider, as the utilities must work together to reduce the total budget of Mass Save. Each utility budgets for their own programs that are then collectively proposed in the total budget for the Three-Year Plan."
Major components of the proposed plan -- including creating equity communities and benefiting renters – will remain in place, the DPU says. A copy of the entire order can be found here.
Climate Activist and Executive Director for the Boston Climate Action Network Hessann Farooqi says the program has been a success, but he believes that a payment strategy needs to change long term for it to continue to succeed.
"If we are reducing costs in way that can save our families money on energy bills that's one thing," he said. "The utilities are not the best entity to run [Mass Save] because if you are a company that makes money by building gas pipes… You are not going to have any incentive to get people off gas," which is one of the sustainability goals of Mass Save.
In addition, the DPU approved plans by utility companies Friday to reduce remaining winter bills by 7%-16% with the costs to be made up interest free over the course of the spring and summer. For some – that's not good enough.
"We do not want layaway; we want affordable energy. We don't want to space these expensive six months out," said Elijah DeSousa, the founder of the Facebook group Citizens Against Eversource. "It's a net zero game. The only thing [the companies are] trying to do is keep face."
Statement from Gov. Maura Healey
"High costs are impacting everyone right now, and the spike in gas prices is unacceptable. That is why I demanded that the DPU and utilities take immediate action to lower bills. The DPU's actions today mean that people will see about 10% in savings on their March and April gas bill. The $500 million reduction in the Mass Save budget will mean real savings for people, while ensuring the vital money savings from energy efficiency can move forward. We also know this is not enough. We need urgent action to continue to bring down costs and prevent these price spikes from happening again. That's why I will be launching an energy affordability agenda – including through executive actions and legislation – in the days and weeks ahead."