Utilities plan to recoup costs from the governor’s winter bill reductions

Local News

In filings with the Department of Utilities, electric and gas companies say they will add spring surcharges to offset February and March discounts.

After Gov. Maura Healey announced sweeping cuts to winter energy bills — 25% for electricity and 10% for gas in February and March — utility companies have now filed plans with the state to recoup those costs by adding surcharges to customers’ spring bills.

In a letter to the Department of Utilities earlier this month, the companies said they will recover the costs through deferred charges beginning in April, when heating bills usually drop.

Fifteen percent of the reductions in electricity bills will not need to be repaid, as the state is using $180 million in existing funds to pay for it. However, it leaves 10% of the reductions in electric bills and 10% of the reductions in gas bills unaccounted for. 

Each utility is proposing different rates to make up for the difference:

National Grid:

National Grid, which has 2.3 million customers in the state, plans to recover the costs of the governor’s winter bill reductions by adding charges to customers’ off-peak bills. 

For gas customers, the company proposes spreading those charges from May through October to make up about $53 million in deferred costs. Under the company’s estimates, the average residential heating customer would pay about $9 more per month during that period.

For electric customers, National Grid is requesting a deferment of recovery until April, estimating about $43 million in deferred costs. From April through December, customers would see an average monthly increase of about $4, according to the filings.

Eversource:

Eversource, which serves 1.4 million customers in the region, is proposing similar deferred charges for both gas and electric customers, saying it would recover the lost revenue at the monthly prime lending rate, which is currently around 6.75%, beginning in May. The company said it would submit the proposed rate by mid-March. 

Unitil:

Through Unitil’s subsidiary, Fitchburg Gas and Electric Light Company, which serves over 100,000 people in the region, gas-heating customers would see an average rate cut of $38.72, or 10%, in February and March. 

But to recover costs, the average residential gas-heating customer would see an increase of $12.01 per month or 14.9% between May and October. 

For basic service electric customers, they would see a bill decrease by $59.20 in February and March. They would make up for it with surcharges of $5.90 or 2.5% of current rates from April to December to recover the 10% rate reduction. 

Liberty Utilities: 

Liberty Utilities, which serves only a little over 60,000 customers in the state, is approaching it differently. Instead of recouping the costs in the spring, it is using over-charges of energy efficiency and residential assistance to pay it off. 

However, customers will see a slight increase in revised rates, ranging from $1.84 to $5.87 per monthly bill, beginning in April.

Berkshire Gas Company did not file a reply. 

The Executive Office of Energy and Environmental Affairs did not immediately respond to a request for comment. 

However, in a statement to WCVB, the department said, “We’re disappointed that the utilities will not fully waive carrying costs. We are hearing from people that they are hurting now. This underscores the importance of passing the Governor’s energy affordability legislation to create more accountability and drive down costs.” 

Beth Treffeisen is a general assignment reporter for Boston.com, focusing on local news, crime, and business in the New England region.