Massachusetts Natural Gas Customers Will See Another Decrease in Their Bill
Once again, natural gas customers in Massachusetts can expect a reduction in their bills, this time all the way until May.
The Massachusetts Department of Public Utilities announced today that it has approved reductions in gas supply rates for Eversource and National Grid customers in Massachusetts.
“On average, the decreases will result in a monthly bill decrease of about 10 percent for a typical residential heating customer,” the DPU announced, noting that Eversource serves approximately 300,000 customers, and National Grid serves approximately 950,000 customers.
The new reduction goes into effect on March 1 and will last until May 1.
It marks the third time this winter season that the DPU reduced gas supply rates, with it also happening on December 1, 2022, and again on February 1, 2023. The February adjustment saw gas supply rates decrease about four to five percent on average.
The reductions are due to the declining price of natural gas and actual gas consumption. Federal law requires that natural gas is sold in a competitive market, but Massachusetts gas distribution companies must buy gas on customers’ behalf at market price and pass it on to the customer without making a profit. It’s all based on something called the “cost of gas adjustment factor,” or GAF.
The GAF is normally set in six-month increments but can be adjusted if there is a change in the market price for natural gas.
LOOK: The 25 least expensive states to live in
LOOK: This is where homes are selling the fastest right now
More From WFHN-FM/FUN 107
