$45 Million Eversource Settlement to Benefit Customers with Credits and Savings

Eversource ratepayers will pay less in electric and gas rates as a result of a $45 million settlement between the Massachusetts Attorney General (AG) and Eversource Energy, announced AG Andrea Joy Campbell from Boston on December 5th.

Customers of NStar Electric d/b/a Eversource Energy will receive a $20 million rate credit beginning January 1, 2026, and customers of Eversource Gas of Massachusetts (Eversource Gas) will see a net benefit of more than $25 million in annual savings once rates reset following Eversource's acquisition of Columbia Gas of Massachusetts (Columbia Gas), said Attorney Andrea Joy Campbell in a press release.

The settlement is between the AG's office with Eversource Energy and its two operating companies -- NSTAR Electric and Eversource Gas of Massachusetts. The settlement, approved by the Department of Public Utilities, resolves 16 long-standing docket matters dating back to 2011. The issues include: (1) seven dockets regarding cost recovery for Resiliency Tree Work; (2) eight dockets regarding the Pension Adjustment Factor; and (3) transition and integration costs associated with Eversource's purchase of Columbia Gas.

Pension Adjustment Factor ($17.5 Million)

Ratepayers will benefit from $17.5 million in credits, distributed over 12 months beginning January 1, 2026, as a result of the settlement parties resolving issues related to the allocation of NSTAR Electric's Pension and post-retirement benefits other than pension ("PBOP") expenses.

Resiliency Tree Work ($2.5 Million)

NSTAR Electric is crediting back $2.5 million to its customers following a review of irregularities in numerous vendor invoices for trimming or removing trees near power lines. Those irregularities mean that those expenses do not qualify for cost recovery through rates, and NSTAR Electric will distribute $2.5 million in credits to its customer over 12 months, beginning January 1, 2026, according to the AGO.

Columbia Gas Transaction and Integration Costs ($25.7 Million/Year For 10 Years)

As part of a 2020 settlement to facilitate the sale of Columbia Gas to Eversource Gas, the AGO negotiated a seven-year rate plan designed to: (1) direct revenue to upgrade Columbia Gas's distribution system to meet Eversource Energy's standards; and (2) stabilize rates for Eversource Gas customers at a lower level than would occur without the sale. The result of settling this issue is a net benefit of $25.7 million per year for ratepayers, which will be realized when rates are reset due to operating savings achieved, the AGO said.

“As the Commonwealth’s ratepayer advocate, I am committed to protecting ratepayers from unnecessary costs and ensuring that more money stays in consumers’ pockets—especially as winter heating bills continue to rise. This landmark settlement reflects that commitment,” said AG Campbell. “Affordability and consumer protection are at the forefront of our work, and I applaud the DPU for their role in ensuring that Massachusetts ratepayers are not unfairly burdened by high utility bills.”

Thanks to the Office of Attorney General Andrea Joy Campbell for sharing this news with Westwood Minute.

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