How Policymakers Are Rethinking Energy Costs

Three pieces of coverage from the past month show energy affordability moving to the center of Massachusetts policy, alongside climate goals and sometimes ahead of them.

An energy emergency. On October 5, Gov. Healey declared a state of energy emergency, citing heating oil prices up 73% from last year. Her executive order expands home heating assistance, removes the SMART program charge from residential electric bills for three months, and cuts the Alternative Portfolio Standard charge by 50% this winter. Read the State House News story

A shift in approach. The Boston Globe reports the governor has moved toward an "all-of-the-above" approach as electric and gas bills climb. She now backs expanding the Algonquin gas pipeline in Southeastern Massachusetts and has redirected some funds meant for clean energy projects to lower bills. The U.S. Chamber of Commerce found Massachusetts electricity costs rose more than 20% over three years, to nearly double the national average. Read the Globe story

The Globe's editorial board weighs in. On November 1, the Globe's editorial board argued that lowering bills and meeting the state's climate commitments are tied together, because the state pays for most of its efficiency and clean-energy programs through charges on utility bills. It warned against blaming any single group for high prices. Pointing to a Progressive Policy Institute paper on Maryland, it urged leaders to put the most cost-effective emissions cuts first, such as permitting reform and covering electrification costs for low- and moderate-income households, ahead of symbolic mandates. It also accepted natural gas as a bridge for now, noting heating oil has topped $6 a gallon, up from $3.52 a year ago, while calling heat pumps a cost-effective long-term option for households that can afford the upfront investment. Read the editorial

Why it matters for builders. Expect energy codes, incentives and heating-system rules to be weighed through a cost lens. The Legislature is still negotiating an energy bill. The House version would cut Mass Save by $1 billion; the Senate's would instead phase out the Gas System Enhancement Program. Both matter for clients choosing heating systems and for projects that depend on Mass Save incentives. Ultimately, as the new legislative session starts.

in January, it frames conversations around decarbonization policy such as the energy code.