North Adams Councilors to Speak Against Berkshire Gas Rate Hike
NORTH ADAMS, Mass. — The Public Services Committee is planning a show of force at Thursday's public hearing on rate hikes for Berkshire Gas Co.
The rate increase was raised at its Tuesday meeting, when Chair Peter Breen said "utilities" had been added to the committee's review.
"Because public utilities are controlled by the municipality — the electric, the natural gas, the cable — those are all part of public service," he said, explaining why Council President Ashley Shade had made the change. "We negotiate, we legislate. And a good example right now is on Thursday, there's a public hearing. The Berkshire Gas company wants to raise the rate 21 percent to 27 percent."
The utility is asking to adjust distribution rates to generate $22.2 million, which it anticipates will result in a 21.6 percent rate increase on average. In filings with the state's Department of Public Utilities, Berkshire Gas is estimating up to about $54 a month increase for residential heating and $12 for non-heating customers.
Gov. Maura Healey has stated her opposition to the proposal, calling the rate hike unaffordable for Massachusetts customers.
"This proposed increase in utility bills could not come at a worse time for families and businesses in Western Mass. It's why we took $180 million off electric bills and pushed the utilities to provide immediate relief to gas customers this winter," she said in a statement, referring to the use of state funds to cut heating costs in February and March.
A public hearing was held last week in Greenfield; a virtual hearing is set for 7 p.m. on Wednesday, and an in-person one at 7 p.m. on Thursday at Berkshire Community College.
Breen said he planned to attend the Thursday hearing but wasn't sure he'd get a chance to speak. Committee members Marie McCarron and Lillian Zavastky felt it was important they attend as well, since the increase will impact so many in the community and the city's utilities budget.
"I think it's our duty to do this," McCarron said. "It's crazy, but it's breaking my heart of what it's going to do to our citizens in North Adams ... right now, we're blessed enough to be able to say we can handle it for a little bit, but how long can we handle with these increases?
"But what about the people who are working three jobs just to make ends meet and to pay their rent? And then you're saying that we've got the elderly who have to decide, am I going to stay warm, or am I going to get my prescription?"
Breen pointed to the company's status as a subsidiary of Iberdrola Group, a major global utility company based in Spain and the United State's Jones Act as reasons for the increased costs.
"They're doing this for cash flow. They're getting 25 percent more for the same commodity. They're a monopoly, and they're charging a premium and we shouldn't have that," he said. "We should be getting 25 percent off ours because ours is too high. I mean, it will put us to the highest in the country."
The Jones Act, passed in 1920, was an attempt to ensure American shipping after World War I. However, its requirements that coastal transports have to be built, owned and operated by U.S. companies and citizens, has forced New England to import its natural gas because no American LNG (liquified natural gas) tankers currently exist.
This prevents the Northeast from importing cheaper natural gas from the Gulf states. New England governors have repeatedly pressed for the act to be waived or repealed.
The committee members also determined to pen a letter and to ask the mayor to also submit one as part of the written testimony for the public hearing. The Department of Public Utilities is accepting letters until Feb. 27.
McCarron suggested that they meet again after Thursday's public hearing to vote on a letter draft and get it on the City Council agenda for Feb. 24.
At the meeting, she said, they could explain what happened at the hearing "and the three of us construct a letter and put it on the agenda, that we get their support, and they all sign it at the last meeting."
Breen thought the letter should also be submitted to U.S. Rep. Richie Neal and the state's two senators in support of waiving the Jones Act. He also said he would speak to Shade about the members attendance at the hearing.
In other business, the committee discussed some of its priorities for year such as learning how sidewalk and road work is scheduled, the status of the city's water infrastructure, costs and transparency, and the lack of a capital improvement plan.
Tags: berkshire gas, energy rates, public hearing, public services,
