The clock is ticking for Massachusetts residents as the state grapples with soaring utility bills. With the Department of Public Utilities (DPU) under intense scrutiny, the newly appointed chair, Jeremy McDiarmid, steps into the spotlight, promising to prioritize consumer affordability.
A Timely Appointment
Just as the DPU faces a critical decision on winter gas rates, McDiarmid, a clean energy advocate, is set to take the helm. This comes after Governor Maura Healey's plea to regulators to slash gas and electric rates, which have skyrocketed, leaving residents reeling. But here's the twist: McDiarmid was appointed alongside another new commissioner by Gov. Healey herself, amidst the very crisis they're tasked with resolving.
The Rate Hike Dilemma
The spotlight falls on Eversource and National Grid, who've enjoyed substantial rate increases year after year. But were these hikes justified? McDiarmid, cautious not to comment on past decisions, emphasizes consumer protection and scrutiny of line items. Yet, the question lingers: Is the DPU truly safeguarding consumers?
The Cost Conundrum
As state-mandated fees drive up utility bills, the Gas System Enhancement Plan (GSEP) emerges as a significant expense. Interestingly, GSEP, designed to replace gas pipes, persists despite the state's shift away from residential natural gas. Eversource, seeking a 13-17% rate hike, claims it's for infrastructure. But is this justifiable after last winter's sky-high bills?
Executive Pay vs. Consumer Pain
Amidst rate hikes, Eversource's gas profit soared, and CEO Joe Nolan's compensation reached staggering heights: $12.9 million in 2022, $18.9 million in 2023, and $13.6 million in 2024. Should executive pay be a factor in rate decisions? McDiarmid hints at potential flexibility with the governor's bill, but the impact remains to be seen.
The Mass Save Dilemma
The Mass Save plan, once a promising initiative, has ballooned to $4.5 billion this year, slightly down from the utilities' proposal due to customer backlash. McDiarmid defends the investment but acknowledges the need for budget scrutiny. And this is the part most people miss: The DPU's spring budget trim was a subtle warning to utilities about spending limits.
As the DPU navigates this complex landscape, one thing is clear: The decisions made will significantly impact Massachusetts residents. But will they bring the relief everyone is hoping for? The jury is still out on that one. And the public is eager to see if the DPU's actions will match their words.
