Press Release: 5/2/2025

AG Campbell Applauds Changes to GSEP Program That Will Save Ratepayers Money

 

Changes Are a Direct Result of the Attorney General's Office Advocacy to the DPU

FOR IMMEDIATE RELEASE:

5/01/2025

MEDIA CONTACT

Sydney Heiberger, Press Secretary

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Call Sydney Heiberger, Press Secretary at (617) 727-2543

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Email Sydney Heiberger, Press Secretary at Sydney.Heiberger@mass.gov

BOSTON — Massachusetts Attorney General Andrea Joy Campbell today issued the following statement in response to the Massachusetts Department of Public Utilities (DPU) issuing Orders on April 30th adopting her recommendations to make the Gas System Enhancement Plans (GSEP) more affordable and better aligned with the Commonwealth’s climate mandates. As a result, ratepayers should expect to see relief on gas bills in the coming years. 

“We applaud the DPU for adopting nearly all of our office’s recommendations to rein in the gas companies’ unrestrained and costly spending under the GSEP program. It is fundamentally unfair to charge ratepayers billions of dollars to prop up the gas system as the Commonwealth works to decarbonize,” said AG Campbell. “Gas bills skyrocketed this winter, and ratepayers need relief. Our office’s advocacy has resulted in significant reductions to the amount that gas companies can bill to customers for unnecessary investments in gas infrastructure that does nothing to achieve our climate goals.”  

In her 49-page brief to the DPU, AG Campbell argued that the GSEP program has had unintended consequences, including exorbitant costs for ratepayers and imprudent investment in new fossil fuel infrastructure. Since 2014, the gas utilities have spent $6.2 billion on new gas pipes through GSEP. GSEP spending has increased by an average of 12 percent every year since 2015, from $291 million to a proposed $880 million in 2025. GSEP accounts for 8 to 11 percent of gas ratepayers’ monthly bills, yet the excessive cost of the program has not led to commensurate safety benefits or GHG emissions reductions.  

The DPU’s Orders in each of the six GSEP proceedings adopt AG Campbell’s recommendations to lower the GSEP revenue cap and deny carrying charges for deferred amounts above the cap. The DPU agreed with AG Campbell’s arguments that the GSEP program must be reconciled with the Commonwealth’s climate mandates, and the gas utilities must reduce excessive and imprudent spending on new natural gas infrastructure. Going forward, the gas utilities will be required to show they considered advanced leak repair as an alternative to costly pipe replacement.   

The DPU also plans to convene a GSEP Risk Assessment Working Group, which will include a representative from the Attorney General’s Office, to ensure the gas companies prioritize investments that address the greatest risks to safety and reliability when administering the GSEP program.   

The GSEP program was created by the Massachusetts Legislature in 2014 to encourage gas utility companies to fix leaking and aging gas pipe more quickly. Each year, the gas utilities file GSEP plans with the DPU for review detailing planned pipe replacement work. Once the work is complete, the gas utilities recover costs from ratepayers through a charge in gas distribution rates. The GSEP statute caps the amount that gas companies can recover from ratepayers at 1.5 percent of a company’s total annual revenues, or an amount determined by the DPU. In 2019, the DPU raised the cap to 3 percent, doubling the amount the gas utilities can recover from ratepayers. 

AG Campbell, through her Energy and Ratepayer Advocacy Division, serves as the statutory ratepayer advocate for the Commonwealth of Massachusetts. She advocates for a cost-effective and equitable clean energy transition with a focus on affordability and expanding opportunities for public participation in state energy proceedings for underserved communities.