Massachusetts Utility Restructuring Legislation

Legislation Cite and Date
Chapter 164, Acts of 1997 (12/97)

Low-Income Provisions
"Electricity service is essential to the health and well-being of all residents of the Commonwealth," and "The restructuring of the existing electricity systems should not undermine the policy of the Commonwealth that electricity bills for low-income residents should remain as affordable as possible."

Low-Income Rate Assistance
Restructuring legislation required electric and combination investor-owned utilities to continue offering utility rate discounts ranging from 11 to 43 percent of low-income households’ bills. In response to higher energy prices during the winter of 2005-2006, the Massachusetts legislature raised the income eligibility ceiling for the discounts to 200 percent of the federal poverty guidelines from the previous level of 175 percent.

Low-Income Conservation
The restructuring law established a conservation fund, through a charge on every electric customer; a portion of this goes to low-income electric efficiency programs; although not part of restructuring legislation, a conservation charge on natural gas customers funds gas low-income energy efficiency programs.

Annual Funding (2006)
Rate Assistance: $52.5 million
Conservation: $22 million ($15 million electric / $7 million gas)

Funding Mechanism
Rate Assistance: Included in distribution company rates which are adjusted periodically in rate cases, all customer classes contribute.

Conservation: 0.25 mills per kWh charge, all electric customers contribute.

Administration
Utilities, with implementation by subgrantees who administer LIHEAP and weatherization.

Pre-Restructuring Funding
Rate Assistance: $36 million yearly
Conservation: $3 million yearly

Page Last Updated: May 14, 2007