Massachusetts Is Taking Steps to Lower Energy Costs. Let’s Get the Details Right.

Massachusetts lawmakers are working to make electricity more affordable. Both the Massachusetts House and Senate passed energy bills (S.3166 and H.5175) this year that would support grid reliability and lower electricity costs through measures such as flexible interconnection, a retail storage program, and modernized residential solar permitting. These smart reforms can cut red tape and make it easier for residents and businesses to install rooftop solar and other distributed energy resources.

As the conference committee works to reconcile the two versions before sending a final bill to Governor Maura Healey, lawmakers should take a close look at proposals to mandate new fixed charges. This under-the-radar policy could work against the bill’s thoughtful reforms and make it more difficult to achieve the goal of lowering electricity costs for Massachusetts residents and businesses.

Proposed fixed charges would:

• Raise electricity bills for at least ~60% of Massachusetts ratepayers
• Hit small businesses and households using less electricity the hardest
• Reduce the savings customers get from rooftop solar, battery storage, and energy efficiency

Fixed Charges Would Make Electricity More Expensive for Those Who Use the Least

Under the proposal, Massachusetts would shift some utility bill costs from volumetric charges, which are based on how much electricity a customer uses, to fixed charges that apply regardless of how much electricity they consume.

Under a fixed charge, Massachusetts’ smallest energy users will effectively subsidize the homes and businesses who use the most.

SEIA’s review of data from Eversource, which serves more than 1.4 million Massachusetts residents, shows what that could look like in practice:

• The bottom 25% of residential energy users, often low-income households, would see their bills increase by more than 10%, collectively paying about $13.4 million more each year.
• The top 25% of residential energy users—who on average consume more than 10 times as much electricity as the bottom 25%—would see their bills fall by about 2.5%, saving roughly $25 million annually.
• For small businesses, the impact could be even more dramatic: the bills of the lowest-use customers would nearly double, while the largest energy users would see their bills decline.

SEIA’s review of data from National Grid, the state’s second largest utility serving 1.3 million residential and commercial customers, shows similar findings. National Grid’s residential customers using the least electricity will see their electricity bills increase by 13.8%, while the biggest users will see bill reductions.

Fixed Charges Undermine Customers’ Ability to Lower Their Bills

Fixed charges would also weaken the financial benefits of investments that help customers reduce their electricity costs, including rooftop solar, battery storage, and energy efficiency.

When more of a customer’s bill is shifted from a volumetric charge to a fixed charge, using less electricity saves less money. That reduces the value of investing in solar and storage.

That is the wrong direction for a state trying to make electricity more affordable. Massachusetts should be giving residents and businesses more ways to take control of their energy costs, not creating new charges that make it harder to save money.

A Broad Coalition of Diverse Interests Opposes Fixed Charges

In late 2025, the Massachusetts Department of Public Utilities opened a comprehensive review of all delivery charges on electric and gas utility bills.

A diverse coalition of consumer advocates, low-income organizations, business groups, environmental organizations, and clean energy companies filed public comments opposing or expressing concerns about the possibility of the DPU increasing fixed charges.

The DPU itself has recognized that the issue is complex, stating that it will “carefully evaluate this issue” before deciding whether and how existing charges should be made fixed or partially fixed.

The DPU has the expertise, data, and regulatory process needed to evaluate how changes to rate design would affect different types of customers. The legislature should allow that work to continue rather than mandating an outcome before the process is complete.

Massachusetts Can Get Energy Affordability Right

Massachusetts lawmakers are right to make energy affordability a priority, and they have already included important reforms in the House and Senate bills that—combined with Gov. Healey’s Executive Order to build more affordable and reliable solar and battery storage—will provide ratepayers with much-needed relief.

The legislature should not undercut the bills’ many positive reforms by mandating fixed charges that raise bills for the customers least able to absorb them.

The conference committee and Healey Administration have an opportunity to get this right: amend the bill to allow the DPU to consider fixed charges, rather than mandate them.