Bill > S2238

This bill amends Massachusetts General Laws Chapter 164 by introducing a new provision that limits the allowed return on equity (ROE) for electric and gas companies during base rate proceedings. Specifically, the bill caps the approved ROE at the average ROE of neighboring states (Connecticut, Rhode Island, Maine, Vermont, and New Hampshire) over the past four years. The department can only exceed this cap if a specific constitutional rights violation would occur. The bill explicitly excludes compensation related to certain energy efficiency and performance incentive programs from this ROE calculation. The purpose of this legislation appears to be protecting consumers from potentially unreasonable utility rate increases by tying ROE to a regional average, which could help prevent utility companies from setting rates that are significantly higher than those in comparable states. This approach aims to provide a more standardized and consumer-friendly method for determining utility rates while still allowing flexibility for unique circumstances.

Transportation and Infrastructure

https://malegislature.gov/Bills/194/S2238