Eversource to Reduce Electric Rates on Heel of Tax Cuts
January 4, 2018
In November, Eversource Energy filed basic service electric rates for its Massachusetts customers for the period starting January 1, 2018 that marked a 20% increase from previous rates. At the time, Eversource customers expected to see a $37 million increase—$12.2 million for customers in eastern Massachusetts (previously under NSTAR service), and $24.8 million for customers in western Massachusetts (previously under Western Massachusetts electric service). Attorney General Maura Healey opposed these rate increases when they were announced
Last month, Congress passed a corporate tax cut, reducing tax rates for corporations from 35% to 21%. On the heels of the tax cut, Healey filed a motion with the Department of Public Utilities (DPU) on December 20 asking the DPU to recalculate Eversource rate increases based on the reduction in corporate taxes. Eversource listened. In a recent filing, the utility said it would pass on the savings from the tax cuts to its customers in eastern and western Massachusetts. Customers in eastern Massachusetts will see a $35.4 million decrease in basic service electric rates instead of a $12.2 million increase. Customers in western Massachusetts will see a $16.5 million increase in basic service electric rates instead of a $24.8 million increase. That amounts to a reduction in rates of $56 million. The reduction is proportionally larger for eastern Massachusetts because rates in eastern Massachusetts are higher than western Massachusetts.