Press Release: 2025-01-28

DPU Approves Settlement for New England Clean Energy Connect

 



The project will provide clean energy and $3.38 billion in net benefits to customers



FOR IMMEDIATE RELEASE:



1/27/2025



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Alanna Kelly, Communications Director



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Call Alanna Kelly, Communications Director at 857-283-3794



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Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov



BOSTON — The Department of Public Utilities (DPU) issued an order today approving the settlement for transmission service from the New England Clean Energy Connect (NECEC) project. NECEC will bring 1,200 megawatts of clean Canadian hydroelectricity to New England ratepayers over 20 years, helping to stabilize energy prices. 



The settlement allows the NECEC project to move forward, which in turn will help Massachusetts reduce carbon emissions while meeting the need for new, clean energy resources. NECEC will help reduce roughly 2 million tons of CO2 emissions a year in Massachusetts that come from fossil-fuel generators. Additionally, the power from the project is guaranteed throughout the length of 20-year contracts, helping to lower winter energy prices that are susceptible to the volatility of natural gas.



“NECEC is essential to our shared clean energy goals,” said Chair James Van Nostrand. “The project will not only provide renewable energy year-round, but most importantly it will stabilize electric rates throughout the state, saving ratepayers money over time.”



“With this order, the NECEC project can move forward, getting us one step closer to achieving our climate goals while providing affordable energy in the process,” said Commissioner Cecile Fraser.



“The DPU is focused on affordable clean energy,” said Commissioner Staci Rubin.  “The NECEC project will get us closer to our greenhouse gas emissions reduction targets while lowering costs for ratepayers and improving reliability.” 



Electric customers can expect to save around $18-$20 a year over the contract term. The NECEC project will reduce average electric costs for residential customers: 




  • Eversource residential customers can expect to save approximately $1.52 a month.

  • National Grid residential customers can save approximately $1.52 a month.

  • Unitil residential customers will save approximately $1.63 a month.



The DPU initially approved the purchase power agreements (PPAs) between the electric utilities and Hydro Quebec for the energy to be delivered through NECEC in 2019, but a legal and political dispute in Maine delayed project construction. Central Maine Power (CMP) successfully challenged these disputes in the Maine Supreme Judicial Court in 2023 and last summer completed over 34 percent of construction of the project route, which should enable the project to come online in 2026, providing service and stabilizing energy prices in New England.



The settlement is between the state’s electric utility companies, the Attorney General’s Office, the state’s Department of Energy Resources (DOER), and CMP. The settlement the DPU approved is for incremental costs associated with project delays and does not include legal fees associated with the challenges over Maine’s ballot initiative against the project. The DPU determined that the overall pricing agreements between the utilities and CMP are cost-effective, procuring long-term renewable energy at low costs that will improve reliability while significantly reducing emissions. 



The DPU also commended both the Attorney General and DOER for their role in the settlement negotiations, advocating for ratepayer interests and a clean and affordable energy future.