Proposed gas rate hike could raise Winter bills for Massachusetts customers

The Department of Public Utilities is considering a proposed gas rate hike from National Grid.

The gas company filed a petition in January to increase base distribution rates.

National Grid said the proposal would generate about $342 million in additional revenue.

That breaks down to a net revenue increase of about $144 million after taking $198 million in capital investments completed through December 2024 into account.

National Grid held seven in-person public hearings and a virtual hearing for the public to voice their opinions on the rate hike.

The final hearing was held at DPU on Wednesday night.

Some of the opponents to the increase included Brandon Lam of Quincy.

He said, “I think Massachusetts ratepayers have faced a lot in terms of what they’ve had to pay for most recently, surging oil prices, as well as rising living costs and everything. So, with all that considered, I strongly encourage the DPU to really comb through this with a very fine-tooth comb and make sure that we’re not charging rate payers more just to make a for-profit company more profitable.”

Another person in opposition said, “I think one of the key things that I find incredibly frustrating is the lack of clarity of what is driving these costs, particularly the segmentation of what’s being imposed externally from the gas company and what the gas company itself is driving from a cost perspective.”

But there was at least one person there in support.

John Buonopane, a sub-district director with the United Steelworkers Union in Massachusetts, said, “We support the company’s proposal. And it’s not just because the jobs that they have are family-sustaining jobs. These are good jobs in the communities that they work in. But it’s because, as I said, they care and they know what it’s going to take to keep these gas systems running safely and reliably.”

Residential heating customers of Boston Gas will see an 8.4% increase or a $23.66 increase during the winter months.

Similarly, Colonial Gas customers will have a monthly bill increase of about 9.4% or $24.76 during the winter months.

Timothy Moore, New England Gas COO for National Grid, told Boston 25 News the rate case is something they have to do for their funding.

“It’s focusing on safety, reliability, and the affordability for our customers to be able to operate and maintain our system,” said Moore.

The last time DPU approved a gas rate hike for National Grid was in 2021.

Moore said, “We’re a 24/7 operation. Oftentimes, we don’t think of the gas business unless it’s really cold outside, but [we’re] 24/7. So we’re responding to leaks. We’re responding to emergency CO2 emissions, things like that. We are surveying our lines. We’re out and about.”

He added that National Grid has 11,000 miles of pipe in the ground with a lot of it installed more than 100 years ago.

“About 2,600 miles is what we call leak prone pipe. That’s the stuff that tends to leak more often, break and crack that we have to replace on a regular basis when we repair it and to extend the life of it so that we can continue to serve our customers safely and reliably on 950,000,” said Moore.

Governor Maura Healey “strongly opposes” the rate hike and said the proposed increase “could not come at a worse time for people.”

“Energy costs are already too high, and we are working on every front to lower them. My energy affordability legislation will save people more than $13 billion by taking charges off their bills and, at my urging, state regulators have opened a full investigation into all charges on people’s gas and electric bills. I also take an all-of-the-above approach to lower costs. We are urgently working to bring in more solar, wind, nuclear, hydro, and gas into our state. But we also need President Trump to halt his tariffs that are raising energy costs and stop blocking major sources of affordable energy like wind and solar from coming into our state,” said Governor Healey.

Boston 25 asked Moore about Gov. Healey’s opposition to the rate hike.

He said, “In this past winter, everyone experienced that energy crunch and energy needed, and gas was foundational. And the investments we’ve made ensure that we had the right system in place that was safe, reliable for those times, and you know now is the time to be thinking about our gas system as it pertains to the energy mix.”

DPU is investigating the request and has suspended the effective date of the proposed rate increase until December 1.

This is a developing story. Check back for updates as more information becomes available.

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