Energy Efficiency, GHG Emissions - March 4, 2025
Massachusetts Utility Department Approves Efficiency Plan
The Massachusetts Department of Public Utilities (DPU) approved the recommended enhancements of Mass Save, an energy efficiency program available to residents and businesses.
The program supports adding heating systems and appliances that are energy efficient along with weatherization of buildings, according to a statement.
To protect ratepayers from excessive bill impacts, the DPU also ordered a reduction of the total three-year budget by $500 million.
DPU issued an order for the 2025-2027 Three‑Year Energy Efficiency Plan that was proposed by the state’s electric and gas distribution companies and the Cape Light Compact, which serve as the Program Administrators of Mass Save.
The state’s energy efficiency program will continue to provide customers with billions in savings and benefits annually by supporting improvements to homes and businesses like energy-efficient heating systems and appliances as well as low-cost weatherization. During the past 15 years, Mass Save has helped customers save 18 million megawatt-hours of annual electricity consumption, leading to lower energy bills on average.
Through its order, the DPU approves a new statewide electrification pool proposal that would deploy more heat pumps at an accelerated pace. The statewide pool will ensure the savings and benefits reach both gas and electric customers. The statewide pool will minimize costs by reducing rate spikes while extending access to energy-efficient heat pumps to more customers.
The DPU also required the program administrators to work with the Energy Efficiency Advisory Council and the Legislature to find alternative sources of funding for decarbonization measures so that Mass Save programs do not solely rely on funding provided by ratepayers. The state and ratepayers are poised to benefit from hundreds of millions of federal funds that would complement Mass Save’s programs.
The reduction from the DPU for the Mass Save 2025-2027 Plan would lower total residential program budgets by 25% for gas and 15% for electric. The decrease will vary by utility provider, as the utilities must work together to reduce the total budget of Mass Save. Each utility budgets for their own programs that are then collectively proposed in the total budget for the Three-Year Plan.
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