Legislation saves billions through getting costs off bills, implementing an all-of-the-above energy approach including nuclear, and holding the utilities accountable

Leominster - On May 13, 2025, at the Leominster Veterans Memorial Center, Governor Maura Healey filed the Energy Affordability, Independence & Innovation Act to bring down costs for residents and businesses. 

The legislation saves customers money, brings more energy into Massachusetts, and increases accountability of the utilities and drives innovation. Key reforms include eliminating and reducing certain charges on the bill, taking steps to create accountability and ensure utilities aren’t passing unnecessary costs onto ratepayers, and reducing barriers to new cutting-edge nuclear technologies. The administration estimates that the bill will save Massachusetts customers approximately $10 billion over 10 years, on top of the $6 billion in savings estimated from her Energy Affordability Agenda announced in March.

“Our administration cut taxes and is working to lower costs on every front – from housing to child care to energy,” said Governor Healey. “Massachusetts families and businesses can’t afford big energy price spikes now, or in the future. This bill – along with our energy affordability agenda – gets costs off bills, saves people money, and adopts an all of the above strategy to bring new energy into Massachusetts.”

“We need to build more housing, attract new businesses and lower energy costs at the same time – that's what this legislation does,” said Lieutenant Governor Kim Driscoll. “We worked with businesses, energy experts, developers and universities to put forward the best ideas to drive down costs and get things built in Massachusetts. We’ll help new businesses and housing developments get the energy they need faster, protect ratepayers from subsidizing infrastructure that doesn’t serve them and drive efficiency, accountability, and transparency.”

“Our comprehensive proposal addresses head-on some of the biggest drivers of price spikes,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “This legislation tackles Massachusetts' lack of homegrown energy, big charges on bills, and an absence of oversight of costly grid upgrades. We’re reining in those costs while still growing our economy and spurring new development across the state.”

Getting Costs Off Bills

The administration is proposing to eliminate or significantly reduce charges on the bill. Massachusetts has the highest net metering compensation rates for large, standalone facilities in the country. Reducing the value of net metering credits for new large net metering facilities will lead to a lower net metering surcharge, saving customers an estimated $380 million over 10 years. The legislation also phases out the Alternative Portfolio Standard charge, which costs ratepayers up to $60 million per year and is set to increase. To reduce bill volatility and rate shocks, the legislation requires the DPU to review and reform all charges on bills and establish of a cap on month-to-month bill increases. 

Governor Healey’s proposal uses innovative financing mechanisms to lower the impact of infrastructure and program costs on customer bills without adding new fees or taxes. The legislation allows utilities to finance Mass Save, Electric Sector Modernization Plans, storm response, and other programs through rate reduction bonds, creating the ability to reduce ratepayer costs by up to $5 billion in the first 10 years.  

Bringing More Energy into Massachusetts

This legislation continues the Governor’s all-of-the-above strategy to bring more energy into Massachusetts and meet rising demand. The bill allows Massachusetts to explore cutting edge nuclear technologies and expands the state’s authority to procure new sources of energy generation, energy storage, and demand response. These reforms will accelerate the development of low-cost electricity generation throughout the region. Giving the state authority to procure energy directly eliminates the fees the state is currently required to pay the utilities for entering into the same contracts, which will save ratepayers billions of dollars over the life of the contracts. The legislation also requires the utilities to update their interconnection process to reduce the time and cost for customers to connect new loads, solar, and storage projects to the grid. 

Governor Healey also proposes to provide the DPU and electric utilities more flexibility in how electric power supply is purchased and prices are set by eliminating the requirement that forces utilities to buy electricity every six months, regardless of current market conditions. This will avoid situations where the utilities are forced to sign bad supply contracts.

Creating Accountability

Customers should only be charged for costs associated with delivering power to their homes and businesses. The legislation authorizes the DPU or an outside firm to audit the utilities’ management and operations. Governor Healey’s proposal also explicitly bans the use of ratepayer funds for advertising, lobbying, entertainment, and other costs. This legislation would also empower the DPU to fine the utilities for non-compliance.

Transmission costs are driving an increase in delivery charges. The bill provides new oversight authority to the Energy Facilities Siting Board to ensure that transmission projects are properly sited and permitted and do not result in unnecessary costs being passed onto ratepayers.  

Powering Innovation & Smart Growth

The Healey-Driscoll Administration is working to maximize the electric grid. Governor Healey’s proposal establishes “Energy Ready Zones” to proactively build out utility infrastructure that supports housing and economic development without increasing costs to ratepayers at large. 

Supporting the Customer

Governor Healey is putting forward a compromise proposal to end unscrupulous practices in the competitive supply industry. The legislation bars the most predatory marketing practices, eliminates automatic renewals and variable rate contracts, establishes new licensing requirements for door-to-door and telemarketing firms, and strengthens oversight. These reforms will help stop the industry from overcharging residential customers while retaining the ability for customers to shop for their own electricity supply. 

The legislation also authorizes gas companies to own and operate geothermal heat loops that serve individual customers, helping support universities, hospitals, and other large building owners afford geothermal heating and cooling – the most efficient heating and cooling technology available – while insulating other ratepayers from associated costs. 

Governor Healey’s bill prohibits utility shutoffs during periods of heat waves due to financial hardship. The bill also expands the moderate-income discount rate to gas customers, which will help hard-working people and families pay their heating bills.  

Additionally, the Governor’s proposal authorizes the utilities to establish programs that allow individual customers to finance clean heating, weatherization and other home upgrades through their bills over time, reducing the need for up-front incentives paid for through utility rates.

The legislation builds on the Energy Affordability actions already announced by the Healey-Driscoll administration that lowered energy bills for Massachusetts residents by $220 million starting in April and will save nearly $6 billion for electric and gas customers over the coming years. This started with a $50 credit on electricity bills in April.

Statements of Support 

Leominster Mayor Dean Mazzarella:

“For many years, the high and often unpredictable energy costs in Massachusetts has been one of the most challenging problems facing households and business owners. In Leominster, our 20 year old Energy Assistance Program, which provides a one-time help during the winter months, maxed out even though we raised more money than any other year.  I am hopeful that Governor Healey’s legislation will bring costs down through increased energy independence and competitiveness.”

Senator John Cronin (D-Fitchburg):

"Utility bills are too high in Massachusetts. Today, I'm grateful we have a Governor that is doing something about it. I know the Legislature looks forward to reviewing this bill and working to make Massachusetts more affordable with the Healey-Driscoll administration."

Representative Natalie Higgins (D-Leominster):

“I am incredibly grateful Governor Healey chose Leominster to announce her Energy Affordability, Independence and Innovation Act. Skyrocketing utility costs are some of the biggest challenges for our residents and small businesses. Bringing down the cost of energy will help ensure folks afford to stay in their homes and small businesses can continue to grow and thrive here in the Commonwealth.”

Beverly Mayor Michael P. Cahill, and Member of the Office of Energy Transformation Advisory Board:

“As Massachusetts residents, we all feel the financial pressures from our own electric and gas bills. My neighbors in Beverly need relief. I greatly appreciate this proposed legislative package from Governor Healey, Lt. Governor Driscoll, and their administration. It contains thoughtful, common sense, and innovative approaches to help get our energy costs down at a time when ensuring affordable home energy is more critical than ever.”

Sal Lupoli, President and CEO, Lupoli Companies: 

“Sometimes, small changes can make a big difference. By lifting a decades old prohibition that has disincentivized building owners from installing central heat pumps for heating and cooling, the administration will help unlock savings and avoid costly alternatives.”

Tamara Small, CEO of NAIOP Massachusetts, The Commercial Real Estate Development Association:

“NAIOP applauds the Healey-Driscoll Administration for not only tackling energy affordability, but also establishing clean energy-ready zones, which will provide predictability and certainty for future housing and economic development projects. Expanding access to clean energy infrastructure is a critical strategy for aligning our housing, climate and economic development goals.”

Rebecca Davis, Chief Operation Officer of the Massachusetts Competitive Partnership:

"We appreciate the Healey-Driscoll administration's proactive approach to addressing energy affordability and grid challenges. This legislation demonstrates a thoughtful effort to balance clean energy goals with economic considerations, offering potential tools to help Massachusetts businesses manage energy costs and support infrastructure modernization. We look forward to working collaboratively with the Administration and the Legislature to effectively support our state's economic competitiveness."

Chrissy Lynch, President, Massachusetts American Federation of Labor and Congress of Industrial Organizations (AFL-CIO): 

“Working people need reliable and affordable energy as soon as possible. We appreciate the Healey Administration's thorough response to our region's energy prices. It is imperative that we bring costs down for working families while supporting good jobs and allowing our state to keep building up a stronger, safer, cleaner, and more resilient energy infrastructure for years to come.”

Frank Callahan, President, Massachusetts Building Trades Unions:

“The strong wage, apprenticeship and labor agreement provisions in this bill highlight Governor Healey’s commitment to ensuring that the workers who build and service these cleaner, more affordable technologies for all of us enjoy good paying careers for themselves and their families.”   

Daniel Leary, President, Local 369, Utility Workers Union of America (UWUA): 

“I’m always excited to see the Governor’s office supporting the men and women represented by UWUA Local 369.”

Mike Monahan, Second District Vice President, International Brotherhood of Electrical Workers (IBEW):

“IBEW appreciates the work of the Healey-Driscoll administration to bring more energy online by removing barriers to clean energy resources, like advanced nuclear, and providing flexibility into the resources the state can purchase. We also applaud the administration for including strong provisions that support union workers. We all know that building more energy will drive down costs for customers and that we need an all-of-the above approach to get there. This bill is a step in that direction.”

Casey Bowers, VP of Government Affairs, Environmental League of Massachusetts:

“Massachusetts leaders have the opportunity to ensure all communities benefit from cleaner, cheaper, and more reliable energy. By building clean energy, investing in a modern grid, and making efficiency accessible to all residents, we can lower bills while reducing emissions. We applaud the Governor for recognizing that climate solutions and affordability go hand in hand.”

Larry Chretien, Executive Director, Green Energy Consumers Alliance:

“The Green Energy Consumers Alliance greatly appreciates the Healey administration’s focus on making energy more affordable and sustainable. While we believe that a ban on retail electricity suppliers is warranted, the language in the governor’s bill is very good for consumers and will offer much more protection against predatory, greenwashing suppliers than we have today.”

Dan Dolan, President, New England Power Generators Association:

“Power generators stand ready to meet increasing electricity demand reliably, and at competitive prices, for years to come. This bill, coupled with last year’s major siting legislation, will provide the basis for collaborative efforts to improve flexibility and energy supply options for the Commonwealth.”

Chris Thomas, Vice President & Head of Public Affairs, Divert:

“This legislation will ensure that difficult-to-recycle organic materials can be leveraged as an energy resource instead of being discarded in a landfill where significant environmental and economic expenses are passed on to the public. The state is taking a major step forward in reversing the impact that unsold and inedible food products have on the climate crisis.”

Zeyneb Magavi, Executive Director, Home Energy Efficiency Team (HEET):

“This year’s perfect storm of a cold winter, rising costs and an aging energy system has highlighted the great challenge of lowering bills today while investing in a safe and affordable energy future.  This legislation rises to this challenge with creative and practical solutions, from opening up utility investment in thermal infrastructure to allowing securitization to be used to lower the cost of capital on wise energy investments.”

Lizzi Weyant, Deputy Executive Director, Metropolitan Area Planning Council:

“As the regional planning agency serving Metro Boston, we know that our communities want innovative solutions to help residents address high energy costs without sacrificing our climate goals. The legislation proposed today will help us build a more affordable, equitable, and resilient Commonwealth, and we are especially glad to see the provisions that address extreme heat and a new look at the Mass Save program. We look forward to working with the Legislature to pass a comprehensive bill that advances these goals.”

Jeremy McDiarmid, Managing Director & General Counsel, Advanced Energy United:

“Keeping our grid affordable, clean, and healthy will require innovation, connecting more clean energy, and programs that are more efficient, responsive and transparent. This bill from the Healey-Driscoll Administration will help contain future costs by providing flexibility in how new, clean resources can connect to the grid and pursuing innovative financing mechanisms that keep costs down.”

Gustavo Quiroga, Executive Director, Local Initiatives Support Corporation (LISC):

“LISC Massachusetts is committed to ensuring low-and moderate-income residents across the Commonwealth benefit from a more sustainable future that helps lower electricity bills and provides access to good paying jobs in the energy efficiency building trades. We applaud the Healey-Driscoll Administration for taking this significant step toward increasing energy affordability and urge our leaders to support additional investments to help affordable housing owners lower energy use, reduce operating costs, and create healthy and resilient homes.”

Sharon Scott-Chandler, President and CEO, Action for Boston Community Development: 

“I applaud the Healey-Driscoll Administration’s leadership in ensuring that energy affordability is a top priority and low-income households remain a central part of the development and implementation of the Commonwealth’s transition to a clean energy future.” 

Kyle Murray, Massachusetts Program Director and State Program Implementation Director, Acadia Center: 

“After a brutal winter where ratepayers suffered high bills stemming from an overreliance on volatile fossil fuels, the Healey/Driscoll Administration is taking bold steps to deliver affordable and reliable clean energy in the Commonwealth. This creative legislation will help speed up renewable energy production, hedge against fossil fuel volatility, eliminate unnecessary charges, and provide effective oversight of our energy systems. Acadia Center looks forward to working with the Administration and the Legislature to move a bill forward that will help all residents with their energy bills.”

Dano Weisbord, Chief of Sustainability and Executive Director of Campus Planning, Tufts University:

“We are excited about this bill’s potential for low-cost, low-carbon heating solutions that could benefit universities, hospitals, and communities.” 

Dennis Carlberg, Associate Vice President for Climate Action & Chief Sustainability Officer, Boston University:

“At Boston University, we are implementing a bold Climate Action Plan that calls for net zero carbon emissions by 2040.  Innovative ideas like Governor Healey’s Energy Affordability Announcement create a path for our university and other institutions to make meaningful progress toward our climate goals.”