After public outcry, Healey orders utilities to drop interest on bill relief

Local News

The governor’s move follows utility filings proposing to charge customers later to recoup the cost of winter bill reductions.

Facing mounting criticism from customers and legislators, Gov. Maura Healey said Wednesday that the state’s major utilities have reversed course and will waive all interest and carrying charges linked to their winter bill relief proposals. 

“Bills are too high, and customers can’t wait for relief,” said Healey in a statement. “After seeing what they proposed, I again called on the utilities today to waive interest charges, and they have agreed.” 

Earlier this month, Healey announced sweeping cuts to winter energy bills — 25% for electricity and 10% for gas in February and March. 

The state is covering 15% of the electricity reductions through a $180 million grant. However, it still leaves 10% of the reductions in electric bills and 10% of the reductions in gas bills unaccounted for. 

To help offset the additional costs, the utilities proposed earlier this week to defer the charges to the spring, by adding carrying costs or interest as high as 6.75%. 

The news sparked outrage among state senators who opposed the move. In a letter to the DPU, 49 legislators wrote, “We are deeply concerned about the impact and burden of out-of-control gas and electric utility bills.” 

The Senate Republicans also joined in opposition. 

“Allowing such charges would be unfair, increase the hardship already faced by Massachusetts consumers facing energy costs which are among the highest in the nation,” a letter to the DPU from the Senate Republicans said.  

It would also “facilitate what could well be considered a deceptive practice of increasing the total costs of energy in those months rather than decreasing them.” 

National Grid, Eversource, Berkshire Gas, and Unitil have since informed the state that, for any costs deferred over several months, they will not charge interest. Liberty Gas, which serves a little over 60,000 customers in the state, will not defer any costs. 

“Customers need relief, and we’re going to continue to push for it,” Healey said in a statement. “That includes our energy affordability legislation, which creates more accountability for utilities, gets charges off bills, and drives down costs.” 

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