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2 | 2 | | SENATE DOCKET, NO. 1986 FILED ON: 1/17/2025 |
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3 | 3 | | SENATE . . . . . . . . . . . . . . No. 2297 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Paul W. Mark |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act relative to fair and stable utility pricing. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :Paul W. MarkBerkshire, Hampden, Franklin and |
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16 | 16 | | Hampshire |
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17 | 17 | | Steven George Xiarhos5th Barnstable2/3/2025 1 of 4 |
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18 | 18 | | SENATE DOCKET, NO. 1986 FILED ON: 1/17/2025 |
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19 | 19 | | SENATE . . . . . . . . . . . . . . No. 2297 |
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20 | 20 | | By Mr. Mark, a petition (accompanied by bill, Senate, No. 2297) of Paul W. Mark and Steven |
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21 | 21 | | George Xiarhos for legislation relative to fair and stable utility pricing. Telecommunications, |
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22 | 22 | | Utilities and Energy. |
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23 | 23 | | [SIMILAR MATTER FILED IN PREVIOUS SESSION |
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24 | 24 | | SEE SENATE, NO. 2149 OF 2023-2024.] |
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25 | 25 | | The Commonwealth of Massachusetts |
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26 | 26 | | _______________ |
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27 | 27 | | In the One Hundred and Ninety-Fourth General Court |
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28 | 28 | | (2025-2026) |
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29 | 29 | | _______________ |
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30 | 30 | | An Act relative to fair and stable utility pricing. |
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31 | 31 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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32 | 32 | | of the same, as follows: |
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33 | 33 | | 1 SECTION 1. Chapter 164 of the General Laws is hereby amended in section 1B by |
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34 | 34 | | 2striking subsection (e) and replacing it with the following:- |
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35 | 35 | | 3 (e) As of March 1, 2026 the total, average rates for all of the distribution company’s |
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36 | 36 | | 4customers purchasing electricity under said standard service transition rate, shall be subject to an |
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37 | 37 | | 5inflation cap that shall not exceed the annual rate of growth, stated as a percentage, of the |
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38 | 38 | | 6Consumer Price Index as reported by the United States Bureau of Labor Statistics for the |
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39 | 39 | | 7preceding year. The implementation of the rate reduction and inflation cap shall be reviewed, |
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40 | 40 | | 8approved, and enforced in accordance with procedures in the rules and regulations promulgated |
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41 | 41 | | 9by the department, which shall require that, the economic value of the rate reduction required |
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42 | 42 | | 10under this section, be maintained during the standard service transition rate period. 2 of 4 |
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43 | 43 | | 11 SECTION 2. Chapter 164 of the General Laws is hereby amended by inserting after |
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44 | 44 | | 12section 1B the following section:- |
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45 | 45 | | 13 Section 1B½. (a) For the purposes of this section, the term rate increase shall mean any |
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46 | 46 | | 14upward adjustment to any rates or charges of any ancillary service, basic service, cogeneration, |
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47 | 47 | | 15default service, distributed generation, distribution, electric service, generation, generation |
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48 | 48 | | 16service or transmission by an electric company to either a distribution company or a retail |
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49 | 49 | | 17customer. |
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50 | 50 | | 18 Notwithstanding any other provision of this chapter, an electric company shall not |
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51 | 51 | | 19institute a rate increase or other change in its rates, charges or retail access except upon approval |
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52 | 52 | | 20by the department and after 60 days’ notice to the department and to the public published |
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53 | 53 | | 21pursuant to this section, which shall plainly state the changes proposed to be made to the |
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54 | 54 | | 22schedule then in force, and the time when the changed rates or charges will go into effect. |
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55 | 55 | | 23Whenever the department receives notice of any rate increase to be made by an electric |
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56 | 56 | | 24company, the department shall first hold a public hearing and make investigation as to the |
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57 | 57 | | 25propriety of the proposed change or changes. After notice of any investigation, the department |
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58 | 58 | | 26shall have power to suspend the taking effect of the change or changes, pending the decision of |
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59 | 59 | | 27the department. Each hearing and investigation shall be conducted as expeditiously as may be |
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60 | 60 | | 28practicable and with a minimum of delay. |
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61 | 61 | | 29 Within 90 days after the completion of the last hearing, the department shall make such |
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62 | 62 | | 30order in reference to any proposed rate increase as may be proper; provided, that if the |
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63 | 63 | | 31department makes an upward adjustment to any current or prior rates or charges by an electric |
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64 | 64 | | 32company, the department shall periodically hold a public hearing and make investigation as to 3 of 4 |
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65 | 65 | | 33the continued propriety of such rates charged by an electric company and shall make such order |
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66 | 66 | | 34in reference to the rate or charge as may be just, which may include decreasing the rate or |
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67 | 67 | | 35charge. |
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68 | 68 | | 36 (b) Upon receipt from an electric company of a notice of any rate increase proposed to be |
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69 | 69 | | 37made pursuant to subsection (a), the department shall give notice as it may prescribe of the |
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70 | 70 | | 38pendency of the proposal and of the time and place of the hearing thereon to the chief executive |
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71 | 71 | | 39officer of any city or town containing a retail customer affected by such proposed rate increase. |
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72 | 72 | | 40The department shall also publish a notice of the hearing at least 10 days prior to the date thereof |
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73 | 73 | | 41in a newspaper of general circulation in each such city or town. The department, upon request of |
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74 | 74 | | 42the chief executive officer of any such city or town, shall hold a public hearing on the matter |
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75 | 75 | | 43within each such town or city; provided; however, that the requesting city or town shall provide |
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76 | 76 | | 44suitable accommodation for the public hearing. |
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77 | 77 | | 45 SECTION 3. Chapter 164 of the General Laws is hereby amended in section 1E by |
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78 | 78 | | 46striking subsection (a) and replacing it with the following:- |
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79 | 79 | | 47 The department is hereby authorized to promulgate rules and regulations to establish and |
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80 | 80 | | 48require performance based rates for each distribution, transmission, and gas company organized |
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81 | 81 | | 49and doing business in the Commonwealth pursuant to the provisions of this chapter. In |
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82 | 82 | | 50promulgating such performance based rate schemes, the department shall establish service |
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83 | 83 | | 51quality standards for each distribution, transmission, and gas company, including, but not limited |
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84 | 84 | | 52to, standards for customer service satisfaction service outages, distribution facility upgrades, |
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85 | 85 | | 53repairs and maintenance, telephone service, billing service, and public safety, and that such |
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86 | 86 | | 54service quality standards shall include benchmarks for employee staff levels and employee 4 of 4 |
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87 | 87 | | 55training programs for each distribution, transmission, and gas company, provided, however, that |
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88 | 88 | | 56the cost of advertising, promotional marketing, and charitable contributions and activities shall |
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89 | 89 | | 57not be counted towards the basis of rates. |
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