State Representative Lipper-Garabedian Joins Massachusetts House to Pass Energy Affordability Bill
Bill to save utility ratepayers $9 billion over the next 10 years
BOSTON – Thursday, February 26, 2026 – State Representative Kate Lipper-Garabedian (D-Melrose) joined the Massachusetts House of Representatives today to pass energy affordability legislation that would result in over $9 billion in savings for utility ratepayers over the next 10 years. The bill makes a one-time funding reduction to the Mass Save program, diverts environmental compliance payments from electricity suppliers back to residents, and positions Massachusetts to further diversify and modernize its energy grid.
“This legislation balances our unwavering climate commitments with the immediate affordability imperative our residents face,” said State Representative Lipper Garabedian (D-Melrose). “As the Trump administration completely withdraws from the climate crisis conversation, refusing to provide necessary permitting for our offshore wind projects and cancelling nearly $200 million in climate investments and grants, the Commonwealth will continue to lead on the transition to clean energy, the modernization of our grid, and workforce development opportunities. The bill also includes critical financial relief for ratepayers who are making challenging household budget decisions in light of high energy prices during a particularly brutal winter.”
“As residents across Massachusetts face sky-high heating bills amid another brutal winter, this legislation is proof of the House’s commitment to bringing costs down by cutting unnecessary spending, by putting money back in residents’ pockets, and through energy diversification. While the Trump Administration continues to attack clean energy projects on behalf of the fossil fuel industry, the House understands that energy diversification is the best tool that the Commonwealth has to cut costs for ratepayers in the long term,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Chair Michlewitz and Chair Cusack for their hard work on this legislation, as well as all my colleagues in the House for recognizing the importance of these reforms.”
“This legislation is one that takes a long-term look at our energy needs and focuses the conversation squarely on affordability for ratepayers. While sustainability remains paramount, without a Federal partner in Washington, the Commonwealth finds itself in a difficult position. By making our energy infrastructure more transparent and more predictable, and by controlling costs, we can improve the lives of millions of our residents while at the same time bringing more energy onto the grid,” said Representative Aaron Michlewitz (D-Boston), Chair of the House Committee on Ways & Means. “I want to thank Speaker Mariano for his commitment to this legislation, as well as Chair Cusack and all my other House colleagues for their hard work and support on this critical legislation.”
In an effort to lower energy prices in the near term, despite volatile gas and electricity prices, the House bill:
Reduces the Mass Save budget by $1 billion for immediate ratepayer savings, prioritizing cuts to the plan’s marketing, advertising and administrative budgets. Mass Save is primarily funded by utility ratepayers through a mandatory charge on their gas and electric bills.
The bill also tasks the Office of the Inspector General with a review of Mass Save to ensure that the program and its administrators are efficiently and effectively using ratepayer dollars. The report is due by July 1, 2027.
Returns 70 percent of Alternative Compliance Payments (ACP), which are fees paid by energy suppliers for not meeting renewable energy standards, to customers until July 1, 2029.
After July 1, 2029, the Department of Energy Resources (DOER), in consultation with MassCEC, mandates that 70 percent of ACP payments be returned to ratepayers in any year where money in the funds exceeds the predicted level by 2 percent and energy costs are a substantial burden to residents of the Commonwealth.
Reduces net metering credit amounts, which are a significant surcharge on electric bills
Requires distribution companies and gas companies to provide discounted rates for low-income customers and eligible moderate-income customers
Requires that any standard residential default service rates cannot be changed more frequently than once every six months
Establishes an electric rates task force to advise and make recommendations on the current and future cost of electricity in the Commonwealth with a report due by September 30, 2027
The House bill also brings more energy onto the grid and protects the workforce during the transition to clean energy. The bill:
Expands the Commonwealth’s energy procurement authority by authorizing DOER to competitively solicit environmental attributes or energy services and negotiate and enter into long term contracts
Requires DOER to establish a state-led offshore wind pre-development and project acceleration program to enable the Commonwealth to partner with offshore wind developers to further the Commonwealth’s goals. The bill also extends from June 30, 2027 to June 30, 2029 the deadline for cost-effective long-term contracts for offshore wind energy generation.
Allows DOER to develop a statewide energy storage incentive program to encourage the continued development of energy storage resources connected to the electric distribution system.
Allows for smart solar permitting to get more projects online faster
Removes barriers for nuclear energy by repealing chapter 503 of the acts of 1982, which established requirements for voter approval and legislative certification of any new nuclear power plant or any facility for the disposal or storage of low level radioactive waste in the Commonwealth.
Allows for high voltage transmission lines on state highways
Requires labor peace agreements for geothermal energy projects to help support and create jobs, adds prevailing wage requirements for work on thermal energy networks, and requires transition plans for gas workers during the transition to clean energy.
The House bill also addresses predatory practices by certain suppliers, which impact consumers while certain utilities benefit through business practices that result in higher utility costs. The bill:
Creates a real-time, online, retail residential customer bill assessment dashboard with: explanations of customer bill components; and an analysis of the benefits of certain programs, procurements and investments.
Adjusts the reporting requirements for electric and gas companies, transmission companies, distribution companies, suppliers and aggregators and suppliers of natural gas to require quarterly reporting.
Protects consumers by restricting predatory marketing practices by competitive electric suppliers by eliminating automatic renewals and variable rate contracts, by requiring more transparency for consumers, and by establishing new licensing requirements for door-to-door and telemarketing firms.
Allows municipalities to opt out of competitive electric supply
Requires utility audits and approvals for asset condition projects that are projected to cost more than $25 million
Requires gas companies to implement default budget billing for residential customers
The bill passed the House of Representatives 128-27 and now goes to the Senate for consideration.
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