DPU Approves Further Reductions to Winter Gas Supply Rates
BOSTON — The Massachusetts Department of Public Utilities (DPU) announced it has approved additional reductions in gas supply rates for Eversource Gas of Massachusetts and Boston Gas Company d/b/a National Grid gas customers.
On average, the decreases will result in a monthly bill decrease of about 10 percent for a typical residential heating customer. Eversource serves approximately 300,000 customers, and National Grid serves approximately 950,000 customers.
Beginning on March 1, 2023, customers served by the companies can expect lower gas supply rates, which last until May 1. National Grid and Eversource Gas of Massachusetts previously lowered their gas supply rates effective February 1, 2023, and December 1, 2022, respectively. The further decrease in rates is attributable to updated forecasts in customer usage and the market-based price of natural gas over the course of the winter period.
"We're glad to see continued reductions in natural gas prices, and we will continue to seek out ways to deliver relief to our residents," said Energy and Environmental Affairs Secretary Rebecca Tepper. "These volatile gas prices underscore the importance of Massachusetts' transition to clean and affordable energy. The Healey-Driscoll Administration is working urgently to deliver relief and a more stable energy future for our residents."
Under federal law, natural gas is sold in a competitive market. The Massachusetts gas distribution companies are required to purchase gas on their customers' behalf at the market price and pass that cost on to their customers without profit to the companies. The DPU requires all gas distribution companies to revise their gas supply rates, known as the cost of gas adjustment factor, or "GAF", whenever the companies will materially over- or under-collect costs from customers. Due to declining natural gas prices in the competitive market, all gas distribution companies previously decreased their GAF for gas consumed. Based on updated projections and actual gas consumption, National Grid and Eversource Gas of Massachusetts were required to make further adjustments to their gas supply rates. Each gas distribution company's gas supply rates change at least every November 1 and May 1.
Resources for helping customers struggling with their utility bills are available on the DPU's webpage. Financial relief is available to qualifying customers who cannot afford their energy bills. Customers should first contact their utility to explore payment plan options. They can also call 211 to learn about the Low Income Home Energy Assistance Program (LIHEAP), which pays for a portion of your household energy costs in the winter.
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