Massachusetts Attorney General Andrea Joy Campbell has commended the Massachusetts Department of Public Utilities (DPU) for adopting her recommendations to modify the Gas System Enhancement Plans (GSEP). These changes are expected to alleviate financial burdens on ratepayers and align with the state's climate objectives.
"We applaud the DPU for adopting nearly all of our office’s recommendations to rein in the gas companies’ unrestrained and costly spending under the GSEP program. It is fundamentally unfair to charge ratepayers billions of dollars to prop up the gas system as the Commonwealth works to decarbonize," said AG Campbell. "Gas bills skyrocketed this winter, and ratepayers need relief. Our office’s advocacy has resulted in significant reductions to the amount that gas companies can bill to customers for unnecessary investments in gas infrastructure that does nothing to achieve our climate goals."
AG Campbell's 49-page brief highlighted unintended consequences of GSEP, such as high costs for ratepayers and imprudent investment in fossil fuel infrastructure. Since its inception in 2014, $6.2 billion has been spent on new gas pipes through GSEP, with annual spending increasing by an average of 12 percent since 2015.
The DPU's recent orders have adopted AG Campbell's suggestions, including lowering the GSEP revenue cap and denying carrying charges for deferred amounts above this cap. The DPU agreed with AG Campbell that GSEP must align with state climate mandates, requiring utilities to consider advanced leak repair over expensive pipe replacements.
Additionally, a GSEP Risk Assessment Working Group will be formed by DPU, including a representative from AG Campbell's office, ensuring investments prioritize safety and reliability risks within GSEP administration.
The Massachusetts Legislature established GSEP in 2014 to expedite repairs of leaking and aging gas pipes. Annually, utilities submit plans detailing pipe replacement work for review by DPU. Costs are recovered from ratepayers through distribution rates, capped at a percentage of total revenues or an amount set by DPU.
AG Campbell continues her role as statutory ratepayer advocate through her Energy and Ratepayer Advocacy Division, promoting affordable clean energy transitions while emphasizing public participation opportunities in state energy proceedings.