Eversource Seeks Approval for Long-Term Natural Gas Contract in Massachusetts

BOSTON, Massachusetts — Eversource Energy is urging state regulators to endorse a long-term natural gas supply contract that could lower costs for customers in Massachusetts and lessen reliance on high-cost liquefied natural gas imports. The company, which oversees two utilities in the state, filed petitions with the Department of Public Utilities (DPU) on Tuesday.

This petition coincided with Enbridge‘s announcement of a $300 million expansion project for its Algonquin Gas Transmission Pipeline, expected to supply an additional 75 million cubic feet of natural gas per day to the U.S. Northeast by 2029. Eversource spokesman William Hinkle stated that the new agreement aims to secure a lower-cost and more environmentally friendly domestic gas supply.

Hinkle emphasized, “As part of our continued focus on affordability and reliability for customers, we’ve entered into a precedent agreement with Algonquin for additional natural gas over the next ten years.” He noted that this shift could save customers approximately $400 million throughout the duration of the agreement.

The proposal aligns with Massachusetts’ ongoing climate initiatives. Hinkle added, “To meet our customers’ energy needs as we transition to clean energy, we must explore various solutions that enhance reliability and affordability, including more natural gas supply.”

Recent studies have raised concerns about the greenhouse gas emissions associated with exported liquefied natural gas, making the need for a local supply more pressing. While the LNG terminal in Everett is allowed to operate until 2030, the state is looking for alternatives.

Both NSTAR and Eversource want the DPU to approve their plan before their current contracts expire in 2030, stating that it would eliminate their dependence on the Everett terminal post-2030 and prevent any rise in greenhouse gas emissions.

Eversource expects that the new agreement will reduce customers’ winter gas supply costs by about 17 percent, leading to a typical household heating bill reduction of around 5 percent by 2030, while NSTAR estimates a modest 3 percent decrease in costs.

Gov. Maura Healey has expressed support for Eversource’s proposal, indicating her commitment to a balanced energy strategy. “We appreciate this 10-year proposal. Massachusetts and the Northeast need more energy supply for reliability and to lower energy bills,” she stated.

Regulators have been asked to release their decision by February 2026, before a March 1 obligation tied to the agreement. If approved, this deal would mark a significant shift in natural gas sourcing for Massachusetts.