State opens investigation to review all charges on utility bills

State opens investigation to review all charges on utility bills
Western Mass News
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BOSTON (WGGB/WSHM) – State officials have announced that they have opened an investigation to review all delivery charges on electric and gas bills.

The Massachusetts Department of Public Utilities (DPU) explained that the investigation is aimed at examining the “causes of bill volatility and promote a greater understanding of rates for customers to take greater control over their energy bills” and explore ways to contain energy costs that may fall under the department’s jurisdiction.

Each gas and electric bill include a supply rate and components that make up the delivery portion of bills. The delivery portion includes a fixed customer charge, the base distribution rate, and rates for reconciling mechanisms that allow utilities to recover costs required by state and federal policies, and costs necessary to maintain infrastructure.

The first phase of the investigation will include a review of the components of the delivery portion. As of now, the DPU conducts charge-by-charge reviews annually on most delivery components within their jurisdiction in separate dockets and examine utility cost recovery requests to make sure those expenditures are prudent and consistent with approved state laws, federal policies, and tariffs. They will also explore rate designs that could reduce bill volatility and make it easier for consumers to understand the different parts of their bill and what contributes to their charges. The department also noted that they will evaluate whether certain charges should be eliminated, consolidated, or redesigned as a fixed charge and will review whether to set maximum limits on how much specific charges can increase from month to month.

DPU Chair Jeremy McDiarmid explained in a statement, “This thorough investigation will shed new light on ratemaking for the public…We’re eager to continue the momentum built this year to help keep bills in check and put utility customers first.”

The second phase of the investigation will include a look into utility bill design, which could increase transparency for ratepayers when they receive their bills and creating more consistency across utility companies. DPU said they also plan to look into current utility billing practices and their performance “in meeting obligations to provide customers with accurate, transparent, and timely bills.”

Those needing help understanding a utility bill or assistance in paying a bill this winter are urged to visit the DPU’s ‘Understanding Your Utility Bill’ webpage or their ‘Winter Bill Resources’ webpage.

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