Representative Steven S. Howitt advocates for utility bill cost-saving measures for state ratepayers

House Republican Caucus offers series of reforms to energy bill

Boston – State Representative Steven S. Howitt (R-Seekonk) recently joined with Republican colleagues to support a package of reform measures promoting utility rate relief and affordability for Massachusetts residents.

During the February 26 debate on House Bill 5151, An Act relative to energy affordability, clean power and economic competitiveness, members of the House Republican Caucus put forward a series of proposed amendments aimed at providing financial relief for residential and business customers who are struggling with high energy bills. Representative Howitt noted that the underlying bill includes some positive provisions but falls short of achieving much-needed affordability goals, particularly in the short term.

In addition to targeting the Mass Save program for reforms, the caucus called for the repeal or delay of costly mandates that drive up energy costs for ratepayers, and seeks limits on public benefits charges assessed on consumers, offering one-time credits and tax deductions to help ratepayers with their energy bills, and expanding sustainable energy source options, particularly those that are less costly and more accessible than some newer technologies.

With most of the caucus amendments rejected during debate, Representative Howitt and colleagues voted against the underlying bill, which was engrossed on a vote of 128-27, calling it a missed opportunity to secure meaningful relief for ratepayers.

The following represents examples of some proposed caucus’ amendments in the House:

Mass Save Reforms – House Bill 5151 reduces the budget for Mass Save – an energy efficiency program subsidized by ratepayers on their monthly utility bills – by $1 billion, the caucus proposed additional reforms including:

• Prohibiting Mass Save’s administrative costs from exceeding 5% of the amount of funds allocated to program; and
• Prohibiting the Department of Public Utilities (DPU) from approving an energy efficiency plan if the total costs are more than 2% greater than the total costs incurred for the previously approved plan.

Emissions and Clean Energy Mandates – Representative Howitt noted that the caucus addressed some major cost-drivers impacting Massachusetts energy bills by offering proposals to:

• Make the state’s energy efficiency investment plans advisory and non-binding through the year 2030 and prohibiting these plans from adversely impacting ratepayers and Massachusetts businesses;
• Direct the Executive Office of Energy and Environmental Affairs (EOEEA) to conduct a competitive solicitation for proposals to increase interstate natural gas transmission capacity into the Commonwealth;
• Prohibit any entity within EOEEA from adopting or implementing any rule or policy issued by the California Air Resources Board (CARB) and direct the secretary to identify and rescind or amend any regulation that is drawn from the CARB;
• Mandate that the enforcement of motor vehicle emissions standards tied to California’s Advanced Clean Car Standards, requiring automakers to sell an increasing share of zero-emission vehicles starting in model year 2026, be delayed by 5 years;
• Prohibit state agencies from imposing any regulations, administrative action, or policy implementation related to greenhouse gas emission limits or clean energy unless it has determined that the action shall not affect affordability for ratepayers or competitiveness for Massachusetts businesses;
• Strike the mandate of all electric vehicle motor vehicle sales by 2035;
• Remove the provision requiring all entities to sell only electric trucks beginning with the next model year; and
• Strike the reference that couples Massachusetts vehicle emission policies to that of California.

Public Benefits Charges – To reduce energy bills for ratepayers, Representative Howitt, with the caucus, offered amendments to:

• Allow public benefit energy charges on energy or gas consumption to be applied only to usage during non-peak hours, from 9 PM to 9 AM;
• Grant residential customers the ability to opt-out of the net metering recovery surcharge on utility bills if they do not have an interconnected net metering system; and
• Impose a 12 consecutive billing months moratorium, during which time electric distribution companies will be prohibited from charging or collecting the public benefit energy charge from retail electric customers, while preventing DPU from deferring, tracking, or allowing any future recovery of the forgone public benefit charge revenue through rate increases, surcharges, reconciliation mechanisms, interest, or any other adjustments.

One Time Credits and Tax Deductions – To provide more immediate financial relief to ratepayers, the caucus offered amendments to:

• Require DPU to issue a one-time credit of $250 to residential ratepayers with a total annual income of $75,000 for individuals or $150,000 for those filing jointly for electric, gas, propane gas, or oil utilities, which will be reflected on their monthly statement at the time of the credit, with automatic eligibility for those participating in qualified means-tested programs like SSI, SNAP, WIC, and MassHealth;
• Require DPU to issue a one-time credit of $500 to commercial rate payers for electric, gas, propane gas, or oil utilities, to be reflected on their monthly statement at the time of the credit; and
• Establish a tax deduction in an amount equal to what has been paid in electric, gas, propane gas, and oil utilities of up to $10,000, made available to individuals who earn up to $175,000 and joint filers who earn up to $350,000 to remain in effect until December 31, 2029.

Additional Reforms – Representative Howitt supported additional reform measures offered by the caucus, including proposals to:

• Prohibit the state from approving a battery storage facility unless the local body has approved the project and given the municipality the authority to establish additional siting, safety, and environmental requirements for battery energy storage facilities, with a requirement that state authorities provide technical assistance to municipalities in evaluating proposed projects;
• Allow customers to use another propane company to fill their tank if the company with which they are contracted cannot fill their tank, while also providing legal protections to the customer;
• Allow a municipal light plant (MLP) that is providing emergency mutual aid to sell, rent, or lease infrastructure related to the provision of emergency mutual aid, ensuring any employee of an MLP providing emergency mutual aid shall be covered as though performing these duties within the scope of their employment (adopted as part of Consolidated Amendment B on a roll call of 138-16); and
• Require the electric rates task force to include legislative and regulatory reform recommendations providing both short-term and long-term rate relief for residential and commercial consumers, along with a comparison of ratepayer affordability in Massachusetts with similarly situated states, including policy, infrastructure and market cost drivers (adopted as part of Consolidated Amendment C on a roll call of 128-26).

House Bill 5151 now moves to the Senate for its consideration.