National Grid and Eversource Set Winter Gas Rates for Massachusetts

Regulators in Massachusetts approved natural gas rates on Friday that will keep winter heating costs stable for most residents. The decision offers a pause in rising household expenses for the state's largest utility customers. The Department of Public Utilities signed off on plans that maintain National Grid bills at last year's levels. Eversource customers will see a more mixed outcome depending on their specific service area.

Customers in Eversource's EGMA service area will see a 5 percent reduction in their bills. Those served by the NSTAR subsidiary will pay 7 percent more. A company spokesperson attributed the NSTAR increase to deferred infrastructure costs from the previous winter. All customers will receive a bill credit of at least $20 in January and February. NSTAR customers will receive $30 in those months and an additional $25 in March.

The underlying cost of natural gas has dropped to multi-year lows. This decline is driven by higher production levels and a forecast for a warmer winter. The DPU stated that energy affordability remains a top priority. A spokesperson wrote that the agency will take steps to ensure reliable service at the lowest possible cost. The approval applies to hundreds of thousands of homes and businesses across the state.

National Grid serves more than half of ratepayers in the state. The company has not requested a base distribution rate increase since 2021. It is now asking regulators to approve a proposal that could raise bills by up to 11 percent at the start of next year. The proposal would raise $342 million for existing projects. It would also fund improvements on the company's 11,000 miles of gas distribution pipes. One-third of that pipeline system dates back to 1970.

Regulators will not make a decision on the National Grid rate case before November 30. In past cases, state officials have reduced the company's initial proposals. The DPU is also investigating National Grid and other utilities for alleged lack of transparency in delivery charges. A National Grid spokesperson said the rate case fulfills the company's responsibility to enhance system safety and reliability.

Tom Smith, a National Grid customer in Newburyport, noted that his monthly heating bills have risen by roughly $200 since 2023. He attributes this to delivery charges that are difficult to parse. Smith broke down the delivery portion of a 2025 bill into 16 separate components using state data. The regular monthly bill from National Grid lists only four pieces of the delivery charge. Smith described the billing process as not transparent.

Governor Maura Healey has urged utilities to issue $1.5 billion in refunds to customers early. These refunds stem from a March decision by the Federal Energy Regulatory Commission. The agency determined that some utilities had earned higher-than-allowed profits on their investments. The refunds are separate from the current winter rate approvals.

A large portion of delivery charges funds state environmental initiatives. This includes the Mass Save energy efficiency program and the Gas System Enhancement Program, or GSEP. The GSEP program is designed to help utilities replace and repair old, leaky pipes. Analyses by the Future of Heat Initiative estimate that the GSEP replacement program will cost a customer $31,000 over a lifetime. Utilities have spent more than $6 billion of customer money on the program since it began in 2015.

State legislators are currently negotiating bills to lower energy charges. Some in the Senate are seeking to phase out GSEP entirely. A House proposal looks to scale back Mass Save. Smith expects his monthly bill to exceed the $1,150 he paid in January 2026 if the National Grid rate case is approved. He is retired and lives on Social Security, so any increase would come from his savings.

Gwen Hyland, a Boston resident, heated her 1910 home with a combination of electric mini-splits and natural gas last winter. The combined cost was close to $2,000 during the coldest months. Hyland originally planned to drop the electric heating due to rising prices. She is now uncertain about her strategy for the upcoming season. She is hoping for a super El Niño event to bring a warmer winter, but she described every winter as a time to brace for impact.

Smith and Hyland represent the many customers facing uncertain costs while state officials weigh long-term infrastructure investments against immediate budget pressures. The DPU's final decision on National Grid's base rates will determine the financial outlook for the coming year. The $20 credit will apply to bills starting in January. The rate case decision is scheduled for late November.