The state is taking another step to try to bring down the cost of natural gas.
The Department of Public Utilities announced Friday that they’re cutting the amount of money that gas companies can charge customers for new pipes.
Those companies spend hundreds of millions of dollars a year to replace lines and those costs are passed on in the form of “Delivery Costs” on your bill.
The DPU says that by limiting the amount companies can charge customers for replacing pipeline, they’ll force utilities to choose cheaper alternatives, including repairs, or non-pipeline alternatives.
A spokesperson for National Grid told Boston 25 News that their gas system enhancement plan focuses on the critical safety work and requires careful planning and coordination due to the age of the infrastructure in the region.
“These targeted investments help protect public safety and provide a reliable energy foundation that underpins economic growth while Massachusetts continues to pursue an all-of-the-above energy strategy. We believe it is both prudent and necessary to prioritize critical infrastructure work that balances safety, reliability, and affordability for our customers,” the spokesperson said.
Eversource told Boston 25 that “maintaining a safe and reliable natural gas system for our customers is not optional.”
“Gas companies are subject to pervasive federal pipeline safety regulations and state requirements mandating a safe and reliable system. The Gas Safety Enhancement Plan (GSEP) is fundamental to those efforts. Through GSEP, we have a strong track record of safely, efficiently, and cost-effectively addressing aging, leak-prone pipe across the state, ultimately enhancing public safety for Massachusetts residents and effectively limiting the amount of methane gas escaping into the atmosphere,” an Eversource spokesperson told Boston 25 News. “Importantly, to date, these investments have contributed substantially to the reduction of greenhouse gas emissions in Massachusetts and will result in lower long-term costs for our customers by preventing emergency repairs and avoiding costly unplanned work. We are closely reviewing the department’s order and will respond accordingly through the regulatory process – with a focus as always on keeping costs as low as possible for customers while ensuring they have access to the safe, reliable service that they need.”
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