Governor Maura Healy submitted a bill that reforms and streamlines billing structures, increases utility accountability and boosts state procurement of clean energy but also cuts compensation for non-residential solar generators.
Massachusetts Gov. Maura Healy submitted the Energy Affordability, Independence & Innovation Act, a bill with widespread changes aimed at cutting electricity costs for residents and businesses.
The bill is estimated to save Massachusetts ratepayers more than $10 billion by removing specific charges on electric bills and ensuring certain costs aren’t shifted onto ratepayers.
“Massachusetts families and businesses can’t afford big energy price spikes now, or in the future. This bill – along with our energy affordability agenda – will get costs off bills, save people money, and adopt an all of the above strategy to bring new energy into Massachusetts,” said Gov. Healy.
About $6.9 billion of the savings is expected to come from removing certain costs from customer bills. This includes phasing out the Alternative Portfolio Standard charge seen on electricity bills. It also includes reforming funding structures for the Mass Save energy rebates program.
Another $2.5 billion is expected to be saved from greater accountability over the state’s electric utility providers. This includes:
- Provide more oversight of costly transmission projects.
- Restrict costs that utilities can recover from ratepayers.
- Authorize utility management audits.
- Require utilities to comprehensively plan and minimize grid costs.
The bill also seeks to save $200 million over the next 10 years by expanding state energy procurement authority, enabling faster customer grid interconnections, and reducing barriers to advancing small-scale nuclear technologies. The full bill text can be found here.
Net metering
The proposed bill also reduces the credit for net metering, the process in which solar owners send electricity to the grid in exchange for credit on their monthly bills. The reduction of net metering credits applies to non-residential solar projects like community and commercial-scale solar.
Kate Daniel, northeast regional director, Coalition for Community Solar Access (CCSA) said the bill damages “one of the most promising solutions to the affordability crisis” in Massachusetts.
“Community solar provides the fastest pathway to emission-free power while also helping avoid certain utility costs that would otherwise be paid by ratepayers,” said Daniel.
Some of the first community solar projects in the state, along with many projects that serve municipalities and local governments, utilize net metering. CCSA said it is concerned that the proposals included in the governor’s bill will halt the progress of such projects in programs.
Daniel said community solar achieves the three bill’s three objectives: affordability, independence and innovation.
“Community solar is already delivering real savings, especially to low- and moderate-income families, is reducing the state’s dependence on imported natural gas, and is strengthening the electric grid all while innovating energy generation standards by allowing farmers, local businesses, and renters to participate,” said Daniel.
