Massachusetts Regulators Approve Cuts to Energy Efficiency Program Budget

BOSTON, Mass. – Massachusetts utility regulators approved a three-year budget for the energy efficiency program Mass Save on March 5, 2025, with a $500 million reduction.

The Department of Public Utilities stated that, despite this budget cut, the program will continue to deliver billions in savings and benefits annually. The funds support improvements in homes and businesses, such as energy-efficient heating systems and low-cost weatherization methods.

“Even with this budget reduction, the state’s energy efficiency program will continue to provide customers with billions in savings and benefits each year,” the DPU said in a press release.

Over the past 15 years, the Mass Save program has enabled participants to save 18 million megawatt-hours (MWh) in annual electricity consumption, according to the DPU. The new rules will yield a 25% decrease in total residential budget for gas and a 15% for electric provisions.

Even with this reduction, the adjusted budget for 2025-2027 surpasses the previous budget of $3.95 billion set for 2022-2024. The DPU explained that the reduction will differ by utility provider as they collaborate to meet the total budget cut for Mass Save.

Utility companies involved in the program include Eversource Energy, Berkshire Gas, Cape Light Compact, Liberty Utilities, National Grid, and Unitil. Eversource expressed gratitude to the DPU for addressing customer concerns regarding affordability.

“This is the most immediate step the state can take to provide long-term rate relief to customers and ensure that the pace of the energy transition in Massachusetts is affordable and attainable,” Eversource stated.

The company reaffirmed its commitment to the Mass Save programs, highlighting their importance in achieving the Commonwealth’s decarbonization objectives.

However, efficiency advocates criticized the budget cuts, arguing that they could lead to a loss of $1.5 billion in benefits and savings. The Conservation Law Foundation, as part of the Beyond Gas coalition, stated, “Paring back energy efficiency programs designed to reduce energy consumption at a time when Massachusetts residents are facing skyrocketing utility bills is like cutting your nose to spite your face.”