Why is the delivery fee so high on Massachusetts gas bills?
Gas bills in Massachusetts are on the rise. So what exactly goes into your utility bill, and why is the delivery fee so high for gas?
WBZ-TV turned to Eversource and the Department of Public Utilities in an effort to get answers on why delivery fees make up such a high portion of your gas bill.
"Citizens Against Eversource"
One Massachusetts man was fed up with the cost of his rising gas bill, so he's taking to social media to do something about it with a Facebook page called "Citizens Against Eversource."
Elijah Desousa said his gas bill has doubled over the last two months.
Desousa runs the Citizens Against Eversource account, which has grown to nearly 20,000 followers. He gets countless messages from people sending him their own bills to show similar experiences.
"All the fail safes that were meant to keep us secure have left us behind and they're out going to nice dinners and we are sitting at home hoping our pipes don't freeze," Desousa said.
What is on your gas bill?
On November 1, the state's Department of Public Utilities approved a winter price hike for National Grid and Eversource. National Grid was approved for an 11 to 13% increase. For Eversource, the approved spike was 25 to 30%.
So how can you make sense of your own bill? For starters, it has two parts – supply and delivery.
Supply is the cost of natural gas, which is up slightly from last year but down from two years ago.
Then there is the delivery portion. According to Eversource, on the average heating bill, the delivery charge is 27% higher than last year. For the average customer, the delivery fee is $240, which is twice as much as the supply.
Eversource told WBZ-TV a big part of the delivery charge goes to build and maintain its infrastructure, like underground gas lines.
Mass Save program
But an ever-growing portion of your delivery bill also pays for the Mass Save program.
Mass Save provides thousands of dollars in incentives for people when they get things like new insulation or a new heat pump. As a customer, you pay for it even if you don't use for Mass Save.
The average Eversource customer now pays about $80 per month for that initiative. That's up 92% from 2023.
Gov. Maura Healey said she wants the Department of Public Utilities and gas companies to figure out a way to lower prices.
"The Mass Save program I know is known around the country as being a really great program. It saves people a lot of money. I'm happy to have a look at that in terms of how it's working right now, in terms of the money coming in. But, I would say that Mass Save is not the issue," Healey said on Wednesday.
How much profit is Eversource making?
Healey also said she plans to spend $5 billion on Mass Save over the next three years in an effort to be more green.
"Yes, we are all having to pay more for those programs and as a region. But the cost of doing nothing would be even higher if we didn't embark on those initiatives," said Doug Horton, the vice president of rates and regulatory requirements for Eversource.
WBZ-TV asked Horton what he would say to people who are frustrated and think they are getting taken advantage of.
"I totally understand that," he said. "I'd much rather not have this conversation because it would mean our costs aren't high. Look, we are at a point where the infrastructure had to be operated and maintained."
What percentage of the delivery charge is Eversource making as profit?
"An average customer bill is let's say around $300 per month. That Eversource profit for the infrastructure that we own and we operate is a little under 10% of that bill any given month," Horton said.
One of three Department of Public Utility commissioners was scheduled to have an interview with WBZ-TV on Tuesday, but they canceled the sit-down and instead said they hope to have news about a possible rate adjustment soon.
As the Citizens Against Eversource continues to grow on Facebook, Desousa said he hopes to organize a ballot question calling for better regulation.
If you have a question you'd like us to look into, please email questioneverything@cbsboston.com.
