MA Natural Gas Rates To Drop Slightly In March: DPU

MASSACHUSETTS — The Massachusetts Department of Public Utilities (DPU) has approved reductions in gas supply rates for most customers, who will on average see a decrease of 4 to 5 percent on residential heating bills, according to a statement from the DPU.

The news comes after a winter of steep price hikes for gas costs. Eversource last year sought to boost rates as much as 38 percent for the average customer, which followed a 22 percent increase the previous winter.

Customers of the following companies had rate decreases beginning Feb. 1: the Berkshire Gas Company, Liberty Utilities, Fitchburg Gas and Electric Light Company d/b/a Unitil, Boston Gas Company d/b/a National Grid, and NSTAR Gas Company d/b/a Eversource Energy.

The new cost will be reflected in utility bills customers receive in March. The decreases are due to changes in the market-based price of natural gas.

“These reductions in winter gas supply rates will offer some much-needed relief to gas ratepayers this winter,” DPU Acting Chair Cecile Fraser said in a statement.

Under federal law, natural gas is sold in a competitive market. Massachusetts gas distribution companies are required to purchase gas on their customers’ behalf at the market price and pass that cost on to their customers without profit to the companies.

Energy & Environmental Affairs Secretary Rebecca Tepper said in a statement that although the price drop is welcome, the change provides "an important reminder that we need to urgently and equitably transition away from volatile fossil fuels, which continue to threaten the financial security of our communities."

The natural gas price decreases are due in part to the warmer winter across the country, CBS Boston reported.

Unfortunately, no decreases are expected in electrical prices in the near future as those are fixed-price contracts.

See related: Big Utility Hikes Coming To MA This Winter: National Grid, Eversource