Gas and electric bills in Massachusetts are about to go down temporarily, according to Gov. Maura Healey. But there’s a catch.
In a preview of her State of the Commonwealth Address Thursday night, Healey said she will immediately reduce electricity bills by 25 percent across the state and gas bills by 10 percent.
Customers, however, will likely end up paying some or all of that money back.
Massachusetts gas and electric bill reductions
The discounts will come in February and March. The governor said the rate reductions will cost the state $180 million, and her administration will cover that by using “existing funding sources.”
The move comes two days after Healey announced she was running for re-election.
Last month, National Grid proposed a nearly 10 percent rate hike for its gas customers in Massachusetts, starting in 2027. Healey opposes that increase.
National Grid bill deferrals, not rate cuts
Of the 25 percent electricity rate decrease, 15 percent is being covered by the state. The remaining 10 percent is being covered by the energy companies for now. But customers will likely pay back that portion during months when utility bills are not as high.
A National Grid spokesperson told WBZ-TV Thursday they are working with the governor and “implementing a targeted winter relief effort that will lower energy bills for February and March.”
National Grid gas customers can expect to save about $27 in each of those two months.
The utility’s electric customers should get a $60 a month reduction for February and March.
However, those reductions are deferrals for February and March. Customers will end up paying some of that money back later in the year.
When it comes to gas, customers will likely pay back the entire amount. National Grid plans to collect back all of the deferred gas bill amounts gradually from customers between May and October.
They’ll collect part of the deferred electric amounts between April and December. The rest of that 25-percent gas cut is covered by Healey’s plan.
Eversource response
WBZ reached out to Eversource for a similar breakdown of customer bills and to ask if they will be cutting rates or just deferring the reductions.
A spokesperson said in an email, “We’re still finalizing details, and because the 10% reduction for gas customers and 25% reduction for electric customers will be volumetric (or based on usage), specific bill impacts will vary by customer and based on the weather.”
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