How to cut energy bills? Massachusetts Senate, House disagree.

Massachusetts lawmakers are working on energy affordability legislation to lower residents’ electric and gas bills. The House passed a bill that would cut about $1 billion from Mass Save, the statewide energy efficiency program that subsidizes home upgrades like heat pumps and insulation. Mass Save is funded through surcharges on utility bills paid by all ratepayers. Sen. Michael Barrett is pursuing a different approach in the Senate bill, aiming to deliver greater savings while preserving the state’s energy efficiency strategy. Barrett proposes phasing out the Gas System Enhancement Plan, created under the 2014 Gas Leaks Act to help utilities replace leak-prone pipelines by accelerating cost recovery. He argues the program has expanded beyond its original justification and now exceeds regular utility maintenance spending.

"In March, the House passed an energy affordability bill that would cut about $1 billion from Mass Save, the statewide energy efficiency program that subsidizes home upgrades such as heat pumps and insulation. The program is funded by surcharges on utility bills, which all ratepayers pay, regardless of whether they opt into the upgrades."

"“You don't throw the strategy out when you need to help people with their bills. You get smart,” Barrett said. “You keep your mid- and long-term strategy intact, and you find a way to still provide people with shorter-term savings.”"

"To do this, Barrett proposes phasing out the Gas System Enhancement Plan, or GSEP. GSEP was created as part of the 2014 Gas Leaks Act. The program encourages utilities to replace leak-prone natural gas pipelines by allowing them to recover replacement costs more quickly. Gas customers pay for GSEP as part of their monthly bill."

"“Now, GSEP's program spending outranks regular utility maintenance,” Barrett said. “Essentially, we created a special case, but made it too tempting for the gas utilities.”"

Read at Boston.com