Dive Brief:
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In response to rising oil prices, Governor Maura Healey of Massachusetts has issued an executive order directing the state to provide home energy assistance to households during the winter. This will be funded by alternative compliance payments (ACP), which are fees charged to electricity suppliers that do not meet clean energy targets.
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The executive order also temporarily reduces ratepayer costs associated with the state’s Alternative Portfolio Standard by 50%. It mandates ACP funds to cover charges related to the “distributed solar charge,” which supports the Solar Massachusetts Renewable Target program.
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Larry Chretien, executive director of Green Energy Consumers Alliance, emphasized that while the need for supplemental support is clear, he believes that ACP funds should remain reserved for clean energy projects rather than being reallocated for immediate aid.
Dive Insight:
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The executive order has declared an energy emergency and tasks state departments to identify ACP funds to augment federal support for the Home Energy Assistance Program (HEAP). It also introduces a one-time benefit for middle-income households reliant on oil heating.
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Massachusetts saw an average home heating oil price of $6.12 per gallon last week, marking a nearly 75% increase from the previous year.
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Chretien praised the state’s past use of ACP funds for projects that bolster resilience in environmental justice communities and improve governmental efficiency, suggesting that prioritizing heat pump conversions would be beneficial.
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The 50% reduction in the Alternative Energy Portfolio Standard obligations is anticipated to deliver $20 million in ratepayer relief. Maria Hardiman from the Massachusetts Executive Office of Energy & Environmental Affairs confirmed plans to start winding down the APS program.
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The governor also temporarily removed ratepayers’ responsibilities for the Solar Massachusetts Renewable Target program and ordered a review of statewide net-metering compensation. This review should consider reforms from other areas and focus on controlling costs while furthering solar growth in Massachusetts.
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Despite changes, the executive order maintains the commitment from Executive Order 654 to double solar capacity by 2035, affirming that both growth and cost-effectiveness can be achieved.
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Currently, net-metering compensation varies by individual state utilities such as Eversource, National Grid, and Unitil.
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National Grid expressed its support for sustainable energy affordability solutions that maintain a reliable energy system, highlighting a commitment to work with the state on practical cost-improvement measures while preserving necessary investments.
