Massachusetts Regulator Approves Utilities’ $4 Billion Energy Efficiency Plan

The Massachusetts Department of Public Utilities on Feb. 2 approved a three-year energy efficiency plan filed by the state’s electric and gas utilities for the period of 2022-2024. The energy savings targets set forth in the plan are designed to better align the Mass Save programs with the state’s climate goals. The program has a total budget of $3.94 billion, with a significant portion allotted for electric heat pump incentives. The plan is expected to deliver an estimated $9 billion in benefits.

The collective electric and gas efficiency plan aims to cut emissions by 845,000 tons to meet the Commonwealth’s 2030 greenhouse gas reduction goals. In addition, the plan incentivizes utility companies to design their business models to meet the state’s environmental and energy goals, as well as maximize economic benefits to residents and businesses.

The Mass Save programs are funded by utility customers, and the plan directs how the funds will be spent on efficiency programs for homes and businesses. Earlier in March 2021, Massachusetts Governor Charlie Baker signed comprehensive climate change legislation, codifying the administration’s commitment to attain net-zero emissions by 2050.

This plan aims to retrofit and weatherize more buildings and to electrify existing ones to get customers off fossil fuels. Moreover, heat pumps will also be placed in a manner that minimizes ratepayer costs while increasing investments in low- to moderate-income communities. A substantial amount of the funding is allocated to electric heat pump incentives for housing, commercial and industrial consumers. The initiative also calls for substantial decreases in annual oil, propane, and natural gas consumption.

Several equity targets are outlined in the three-year plan, including increased investments and benefits designed to equitably serve residents in overburdened communities and lower-income customers. In addition, the measure establishes initiatives to enhance the development of a highly skilled and diverse workforce.