Bill > H2807

This bill aims to protect ratepayers by amending Chapter 164 of the General Laws in Massachusetts. The key provisions are: 1. The Department of Public Utilities (DPU) cannot approve an allowed return on equity (ROE) for electric or gas companies that is higher than the average ROE approved in neighboring states over the preceding four years, unless the company can show that this would violate its constitutional rights. 2. The DPU cannot approve a performance-based ratemaking mechanism for electric or gas companies that has a negative productivity factor, negative productivity offset, or negative X factor, or any other mechanism that automatically results in annual revenue increases at a rate higher than inflation. 3. The restrictions on performance-based ratemaking mechanisms also apply to any such mechanisms approved prior to December 31, 2019, and the DPU must exclude the negative productivity factor from any future filings for an annual performance-based ratemaking adjustment. The goal is to limit the ability of electric and gas companies to increase rates in a way that disproportionately burdens ratepayers.

Transportation and Infrastructure

https://malegislature.gov/Bills/191/H2807