The Massachusetts Department of Public Utilities (DPU) has ordered a $500 million reduction in the 2025-2027 Three-Year Energy Efficiency Plan budget, with the goal of maintaining the Mass Save program’s benefits for residents and businesses.
According to Mass.gov, the DPU’s order aims to balance energy efficiency investments with their impact on ratepayers. The Department is responsible for weighing the bill impacts of these Three-Year Plans.
The revised plan promises to continue providing savings and benefits, such as improved heating systems, appliances, and weatherization services. However, under the new budget, residential gas programs will be reduced by 25% and electric savings programs by 15%.
Despite the challenges of quickly adapting, the utilities have been tasked with collectively reducing the total budget, according to Mass.gov. The changes will appear as a lower energy efficiency surcharge on future residential bills to help mitigate the direct impact on customers’ expenses.
While Massachusetts’ overall energy efficiency budget is being cut, the DPU has approved immediate relief for gas bill payers, effective for March usage and reflected in April’s bills. As part of these approvals, companies have proposed bill reductions ranging from 7.4 to 16% for the months of March and April, providing some relief during the rest of the heating season.
This approval is notable for its lack of carrying fees, ensuring that customers who are already stretched thin are not pushed further, according to Mass.gov.
Furthermore, the Three-Year Plan will increase investments in historically underserved populations, with a focus on ensuring equitable access to free energy-efficiency services. To accelerate the adoption of heat pumps and other energy-efficient measures, the DPU has approved a new statewide electrification pool that will benefit both gas and electric customers.
With these measures in place, the benefits of energy savings are distributed more evenly across the ratepayer spectrum, which aligns with Mass.gov’s goal of more inclusive access.
In addition to budgetary adjustments and bill relief efforts, the DPU has responded to ongoing economic challenges by extending the service shutdown moratorium from March 15 to April 1, according to Mass.gov. This two-week extension gives those who are struggling with outstanding utility bills some extra peace of mind.
Customers experiencing financial difficulties should contact their utility providers to learn more about other assistance programs that provide a variety of bill-management options, such as budget billing and extended payment plans.
