Massachusetts Senate Votes to Save Ratepayers Money on Energy Costs

New law would lower monthly bills, rein in utility overspending, and preserve clean energy progress 

(BOSTON—7/1/2026) The Massachusetts Senate today passed energy affordability legislation that is projected to deliver billions in savings to ratepayers across the Commonwealth while keeping Massachusetts on track to meet its climate goals. 

 

The bill, S.3143, An Act to save people money, repair the climate, and grow the economy, tackles rising energy costs head-on by cutting unnecessary fees, evening out price spikes that hit households during high-demand months, cracking down on predatory sales practices by energy suppliers, and steering the state away from expensive infrastructure projects that don’t deliver value for ratepayers. 

 

“The cost of energy in Massachusetts has placed a real strain on family budgets. This legislation reflects the Senate’s commitment to addressing that strain in a serious and sustained way while continuing our deeply held commitment to lead on our climate goals,” said Senate President Karen E. Spilka (D-Ashland). “I want to thank Chair Barrett for his leadership on this complex issue, as well as Chair Rodrigues and every one of my colleagues who worked collaboratively to develop comprehensive legislation that strikes the balance between affordability and our responsibility to advance our climate goal progress.” 

 

“With the passage of this comprehensive energy affordability bill, the Senate acted decisively today, laying the foundation for affordable and renewable energy for generations to come,” said Senator Michael J. Rodrigues (D-Westport), Chair of the Senate Committee on Ways and Means. “Homeowners, renters, and small businesses across my district consistently cite expensive energy costs as one of the single biggest issues they face, and this legislation levels the playing field and provides a pathway to a more affordable future for consumers of the Commonwealth. This bill will drive down monthly utility bills and flatten out sudden price spikes, and our proposal will lead to long-term savings that will be felt by residents across the Commonwealth. I would like to thank Senator Barrett for his painstaking work on this bill, and all of my colleagues for their feedback and input throughout the process. I also thank President Spilka for her steadfast leadership.” 

 

“The systems run by the gas and electric companies are sprawling and complicated,” said Senator Michael J. Barrett (D-Lexington), Senate Chair of the Joint Committee on Telecommunications, Utilities and Energy. “The Senate sees no greedy masterminds behind the scenes, but we do identify pockets of overspending and overcharging that have accumulated over the years. My colleagues and I want to go after the excesses and save people some serious money.” 

 

The legislation targets the biggest cost drivers that Massachusetts residents face on their monthly bills, including fees, surcharges, and rate adjustments. 

 

Cutting Out the Intermediary on Energy Purchasing — Up to $420 Million in Savings 

Right now, utility companies act as intermediaries when Massachusetts buys clean energy, and they collect a fee for that role. This bill lets the state negotiate those contracts directly, cutting out the fee and saving ratepayers up to $420 million. 

 

Evening Out Seasonal Price Spikes — $780 Million in Savings 

Energy prices for customers on basic service contracts are currently locked in every six months, which can cause sudden jumps in what residents pay. The bill gives regulators more flexibility in how and when prices are set, which is expected to save ratepayers $780 million. 
 

Reviewing Hidden Charges That Spike During Peak Months — $750 Million in Savings 

Bills often include separate ‘reconciling charges’ that aren't reviewed consistently. The bill requires regulators to reform these charges, particularly ones that spike during high-demand months, which will save residents an estimated $750 million. 

 

Investigating Markups on Electric Bills — Up to $1 Billion in Savings 

A new state investigation will examine whether customers have been overcharged when utilities didn’t actively shop for the best electricity rates. Between 2015 and 2024, Massachusetts customers may have paid an estimated $3.4 billion more than necessary. This investigation could lead to savings of up to $1 billion, or roughly $12 a month for a typical household. 

 

Cracking Down on Predatory Energy Suppliers — More Than $650 Million in Savings 

So-called ‘competitive’ energy suppliers have used aggressive sales tactics to lure customers in with low introductory rates only to sharply raise prices later. Over the past decade, customers who switched to these suppliers paid an estimated $738.7 million more than if they’d simply stayed with their regular utility. The bill strengthens consumer protections and enforcement, to save ratepayers a projected $650 million. 

 

Helping Utilities Pay Down Debt Without Passing It to Customers — Up to $7.1 Billion in Savings 

The bill allows utility companies to finance certain costs, like those from storm recovery and grid upgrades, at lower interest rates instead of borrowing at higher costs and passing those costs on to residents. This alone could save ratepayers up to $7.1 billion over 10 years. 

 

Streamlining the Gas Pipe Repair Program — $1.46 Billion in Savings 

The Gas System Enhancement Plan, a program meant to incentivize utilities to fix aging, leak-prone gas pipes, has ballooned in cost, making up an estimated eight to 11 per cent of a typical gas bill, while allowing companies to skip standard cost reviews. The bill narrows the program to focus only on pipes that actually need repair, phases it out by 2030, and restores normal oversight, saving ratepayers an estimated $1.46 billion. 

 

Making Solar and Clean Energy More Affordable Up Front — $540 Million in Savings 

For homeowners who want to install solar panels or battery storage but can’t afford the upfront cost, the bill creates a way to finance that equipment through their utility bill over time. By doing so, it potentially saves consumers $540 million as more households take advantage of it. 

 

Cutting Red Tape in Energy Planning — $1.7 Billion in Savings 

Utility companies currently plan infrastructure projects through multiple, disconnected approval processes, which can overwhelm regulators and often lead to duplicated or unnecessary spending. The bill requires a single, streamlined planning process, helping avoid wasteful projects and saving residents an estimated $1.7 billion. 

 

Strengthening the Mass Save Program 

The legislation strengthens the Mass Save program, which helps residents weatherize homes and upgrade to energy-efficient equipment, by making it more accountable and effective. The bill caps the program’s administrative spending, removes a requirement that utility companies automatically receive bonus payments, and creates a new oversight board to keep the program focused on results. 

 

Protecting Massachusetts’ Climate Leadership 

The bill preserves the state’s commitment to clean energy by adjusting the pace of certain renewable energy purchasing requirements to reflect federal setbacks to offshore wind, supporting renewable natural gas made from food and organic waste, and allowing outside investment in upgrading the electric grid to handle growing demand. 

 

 

Having passed both chambers of the Legislature, the bill will now go through a reconciliation process to resolve differences before a final version is sent to the Governor. 

 

Statements of Support 

 

Attorney General Andrea Joy Campbell 

“As Massachusetts ratepayers continue to confront high utility costs, I appreciate the Senate’s leadership advancing this important legislation. This bill will meaningfully protect consumers who have been harmed by the predatory competitive electric supply industry, enhance utility company accountability, and rein in gas system costs. Thank you to Senate President Spilka, Chair Rodrigues, Chair Barrett, Senator Comerford, Senator Crighton, and the Healey-Driscoll Administration for their work to advance these priorities. I am grateful for the leadership of our Senate and House partners and look forward to working with them on final passage of this legislation.” 

 

Larry Chretien, Executive Director, Green Energy Consumers Alliance 

“We greatly appreciate the direction that the Senate is taking—especially on protecting Mass Save and reducing unnecessary utility spending. There are many provisions that will provide bill relief soon and over the long run, saving consumers money while still facing the climate crisis head on. Our hope and expectation is that the conference committee will identify the best parts from each chamber and produce an excellent final product for the governor’s signature.” 

 

Kyle Murray, Massachusetts Program Director, Acadia Center 

“The Senate should be commended for passing a robust and comprehensive piece of legislation to help address ratepayer costs. While everyone wishes there was a simple path to clean and affordable energy, the true answers lie in complex and varied solutions, which this legislation appropriately addresses.” 

  

Casey Bowers, Action Fund Executive Director, Environmental League of Massachusetts 

“Clean energy is affordable energy, and the Senate’s affordability package recognizes we do not have to choose between lowering costs and advancing our climate goals. By protecting funding for Mass Save, reining in utility overspending, and increasing ambition for clean energy deployment, this proposal would deliver real relief for residents while moving Massachusetts toward an affordable clean energy future.”   

 

Elena Weissmann, Senior Northeast Regional Director, Vote Solar 

“Today the Massachusetts Senate took a big step toward an affordable, clean energy future. This bill lays a strong foundation for the Commonwealth to lead on progress towards a resilient, smart, sun-powered grid. We’re excited to see it cross the finish line and urge the House and Senate to finalize a package that ensures every Massachusetts family shares in the benefits of a clean energy future.” 

 

Mark Dyen, 350 Mass and Gas Transition Allies 

“The Senate today is taking up a bold action plan to rein in utility costs and promote a home-grown clean energy future.  Major measures include reducing utility financing costs and cutting unnecessary and expensive gas company spending. We are particularly pleased in the termination of the wasteful Gas System Enhancement Program and the move to integrate solar, battery storage and peak load management into the Mass Save residential consumer program.” 

 

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