Eversource Proposal Could Slash Massachusetts Winter Gas Bills by 5%

Eversource Energy has submitted a proposal to state regulators for a long-term natural gas supply contract intended to reduce energy costs and dependency on higher-cost, imported liquefied natural gas for Massachusetts consumers. This request comes as the company, which operates two natural gas utilities known as NSTAR Gas and Eversource Gas Company of Massachusetts, seeks approval from the Department of Public Utilities (DPU). The proposed agreement would allow Eversource to secure a lower-cost domestic supply from a forthcoming capacity expansion of the Algonquin Gas Transmission Pipeline, owned by Enbridge.

The endeavor is part of Eversource's strategy to ensure affordability and reliability for customers while also aligning with the state’s decarbonization goals. The agreement aims to save Massachusetts customers up to $400 million over its term. By transitioning away from reliance on the Everett Marine Terminal, Eversource anticipates lowering customer bills without adding to greenhouse gas emissions, as the new agreement would replace an existing contract rather than add new supply sources.

Eversource spokesman William Hinkle emphasized the immediate benefits to customers as Massachusetts transitions towards cleaner energy sources, reinforcing that the contract aligns with the state's long-term climate policies. The agreement seeks to mitigate energy supply uncertainties while supporting Massachusetts in meeting its electrification objectives.

Eversource's proposal indicates that household heating costs for Eversource Gas of Massachusetts customers could see considerable reductions. The filing projects a 17 percent decrease in winter gas supply costs, leading to about a 5 percent reduction in the total bill for a typical residential user by 2030. This could result in a $340 million cost reduction for customers over ten years. NSTAR foresees more modest savings, with a projected 3 percent reduction in winter gas costs, accounting for an approximate 1 percent decrease in average household heating bills by 2030. This is expected to save NSTAR customers around $60 million over ten years.

Governor Maura Healey voiced her support for this initiative, recognizing natural gas as a significant component of the energy mix needed to ensure reliability and lower bills. Healey reaffirmed her commitment to an "all of the above" energy supply strategy to address current energy demand challenges, notably affecting the Northeast region.

Besides the proposal by Eversource, the broader energy landscape in the state faces ongoing adjustments. Officials have delayed the next offshore wind procurement and are mindful of balancing fossil fuel reliance with transition goals. The Department of Public Utilities is also exploring measures to phase out fossil fuel infrastructure and regulate gas companies’ compliance with climate targets. Environmental groups, while recognizing efforts to diversify and increase energy reliability, caution against over-dependence on natural gas, citing long-term consumer cost concerns.

The DPU is reviewing the proposal, with both NSTAR and Eversource Gas of Massachusetts requesting a final decision by February 2026. Approval could set a precedent for supply agreements related to the Algonquin expansion in Massachusetts, although the Enbridge-backed project still awaits regulatory and government approvals with completion expected by 2029.