Boston — The Massachusetts Department of Public Utilities (DPU) approved the 2025-2027 Three-Year Energy Efficiency Plan proposed by the state’s electric and gas distribution companies and the Cape Light Compact, who are the Program Administrators of Mass Save.
The DPU has approved recommended enhancements to Mass Save, the state’s leading energy efficiency program for residents and businesses. To protect ratepayers from excessive bill impacts, the DPU ordered a $500 million reduction in the total three-year budget.
According to the DPU, even with this budget cut, the state’s energy efficiency program will continue to provide billions of dollars in savings and benefits to customers each year by promoting improvements to homes and businesses such as energy-efficient heating systems and appliances and low-cost weatherization.
Over the last 15 years, Mass Save has helped customers save 18 million megawatt-hours of annual electricity consumption, resulting in lower energy bills on average.
The DPU chose to reduce the overall budget to minimize the direct impact on customers’ energy bills. According to an order issued by the DPU, “[t]he responsibility of weighing the bill impacts of these Three‑Year Plans rests squarely with the Department and we take our responsibility as the stewards of ratepayer funds seriously.”
The DPU also directed the Program Administrators to collaborate with the Energy Efficiency Advisory Council and the Legislature to identify alternative sources of funding for decarbonization measures so that Mass Save programs are not solely funded by ratepayers. The state and ratepayers stand to benefit from hundreds of millions of dollars in federal funds, which would supplement Mass Save’s programs.
The DPU’s reduction for the Mass Save 2025-2027 Plan would reduce total residential program budgets by 25% for gas and 15% for electricity. The decrease will vary by utility provider, as the utilities must collaborate to reduce Mass Save’s overall budget. Each utility creates budgets for its own programs, which are then combined to form the overall budget for the Three-Year Plan.
Because of this budget cut, future residential customer bills will include a lower energy efficiency surcharge. The energy efficiency surcharge is listed on electric bills, but it is currently included in the delivery fee on gas bills.
To provide more transparency for all gas customers about the components of their bills, the DPU directed each gas company to list the energy efficiency surcharge as a separate line item on future bills.
As the Program Administrators of Mass Save, utilities work with the Energy Efficiency Advisory Council and stakeholders every three years to develop energy efficiency proposals that help to reduce use and demand, resulting in lower energy bills for customers.
Program Administrators must also develop strategies and investments to ensure equitable access to all energy efficiency programs, particularly for vulnerable and historically underserved communities.
The 2025-2027 Plan increases investments in environmental justice populations as well as low- and moderate-income households, broadening the definition of a moderate-income customer to ensure that more households have access to free energy efficiency services.
The Plan establishes equity targets by designating specific municipalities as “equity communities” in which renters can receive free weatherization, barrier remediation, and electrification.
The Plan focuses these investments on 21 designated equity communities, including Boston, Brockton, Chelsea, Everett, Fall River, Framingham, Fitchburg, Lawrence, Lowell, Lynn, Malden, New Bedford, Oak Bluffs, Pittsfield, Quincy, Revere, Salem, Springfield, Tisbury, Woburn, and Worcester.
Eligible customers can also take advantage of the Plan’s Income-Eligible Program, which provides free energy efficiency improvements and housing upgrades.
The DPU’s order approves a new statewide electrification pool proposal that would accelerate the deployment of heat pumps. The statewide pool will ensure that savings and benefits are available to both gas and electric customers. The statewide pool will reduce costs by lowering rate spikes while also providing more customers with access to energy-efficient heat pumps.
Gas Bill Relief Proposals
The DPU authorized immediate gas bill reductions for residential customers. The gas companies have filed proposals to provide customers with relief from their bills for March and April.
The DPU’s approval of these proposals is part of its ongoing efforts to ensure affordable electricity and gas for all customers. This reduction will apply to the gas supply used in March, which customers will be charged for in April.
On February 20, 2025, the DPU directed gas companies to reduce residential gas bills in March and April to provide relief to their customers for the remainder of the heating season, which ends on April 30th. Berkshire Gas, Eversource, Liberty Utilities, National Grid, and Unitil submitted proposals ranging from a 7.4 to 16% reduction in total gas bills for the remaining months of the heating season.
On Friday, February 28th, National Grid and Berkshire Gas submitted amended proposals to the DPU, waiving the carrying fee that would be charged to customers, which were approved.
The approval means that residential and low-income customers of all six gas companies will see a 7.4 to 16% reduction in their total bill for March and April, with those costs deferred and spread out over the six-month off-peak season from May to October, with no carrying fees.
The DPU ordered a reduction in the Mass Save budget, so gas companies may not need to defer costs for residential customers. The companies would file filings with the DPU containing this information. The deferral helps to avoid the increased volatility that customers have experienced this winter heating season. Customers will not be charged interest for this deferral.
Shut-Off Moratorium Extension
Furthermore, the DPU has extended the service shutdown moratorium from March 15th to April 1st to provide additional relief to customers. The shut-off moratorium applies to customers of DPU-regulated investor-owned electric, gas, and water utilities.
These utility companies cannot cut off service to homes in financial distress. This extension of the shut-off moratorium provides additional protection for customers who may be struggling to pay their utility bills.
Any customer experiencing such hardship should contact their utility to learn about additional assistance programs available, such as budget billing and extended payment plans, which make it easier to pay utility bills. The DPU continues to investigate ways to improve these programs to make them more accessible and provide more assistance to customers.
