AG’S OFFICE SECURES LANDMARK SETTLEMENT AGREEMENT WITH EVERSOURCE ENERGY, SAVING RATEPAYERS UP TO $45 MILLION ON ELECTRIC AND GAS RATES 

Settlement Resolves 16 Long-Standing Matters with Eversource Energy

BOSTON — Deeember 5, 2025 – Press Release – Massachusetts Attorney General Andrea Joy Campbell, in her role as the state’s ratepayer advocate, has reached a Landmark $45 million settlement with Eversource Energy and its two operating companies — NSTAR Electric and Eversource Gas of Massachusetts (EGMA).

The agreement, approved by the Department of Public Utilities (DPU), resolves 16 long-standing docket matters dating back to 2011, including issues related to cost recovery for Resiliency Tree Work (RTW) (7 dockets), Pension Adjustment Factor (PAF) (8 dockets), and transition and integration costs associated with Eversource’s purchase of Columbia Gas of Massachusetts (CMA).

“As the Commonwealth’s ratepayer advocate, I am committed to protecting ratepayers from unnecessary costs and ensuring that more money stays in consumers’ pockets—especially as winter heating bills continue to rise. This landmark settlement reflects that commitment,” said AG Campbell. “Affordability and consumer protection are at the forefront of our work, and I applaud the DPU for their role in ensuring that Massachusetts ratepayers are not unfairly burdened by high utility bills.”

Under the agreement, NSTAR Electric customers will receive a $20 million rate credit beginning January 1, 2026, and Eversource Gas of Massachusetts customers will see a net benefit of more than $25 million in annual savings once rates reset following Eversource’s acquisition of CMA. As a direct result of the negotiated settlement agreement, Eversource ratepayers will pay less in electric and gas rates.

The $45 million settlement is comprised of three components, which resolve 16 dockets related to:

• Resiliency Tree Work ($2.5 Million):NSTAR Electric’s RTW program is a vegetation management initiative to enhance grid reliability by trimming or removing trees near power lines. Upon review of NSTAR Electric’s annual program compliance filings, whic contained thousands of vendor invoices associated with the RTW program, the AGO’s Energy and Ratepayer Advocacy Division (ERA) found numerous invoice irregularities that did not qualify for cost recovery. DPU ordered NSTAR Electric to go through the invoices and remove all improper charges from its cost recovery request. Following a review of invoices, NSTAR Electric agreed to credit $2.5 million to NSTAR Electric customers. Credits will be distributed over 12 months, beginning January 1, 2026.
• Pension Adjustment Factor ($17.5 MillionIn an effort to resolve issues related to the allocation of NSTAR Electric’s Pension and post-retirement benefits other than pension (“PBOP”) expenses, recovered through the Pension Adjustment Factor, NSTAR Electric will credit $17.5 million to its customers. Credits will be distributed over 12 months, beginning January 1, 2026.
• Columbia Gas Transaction and Integration Costs ($25.7 Million/Year For 10 Years) In 2020, the DPU approved a settlement between Eversource, NiSource, AGO, DOER, and the Low-Income Energy Affordability Network to facilitate the sale of CMA to EGMA. As part of that settlement, the AGO negotiated a 7-year rate plan for EGMA, designed to stabilize the rates for EGMA customers and ensure that Eversource/EGMA allocate adequate revenue to upgrade CMA’s gas distribution system to meet Eversource’s higher standards, and to stabilize long-term rates for EGMA customers at a lower level than would occur without the sale to Eversource. Now, even though Eversource is approved to recover transaction and integration costs associated with the sale of CMA, EGMA ratepayers will realize a net benefit of $25.7 million per year when rates are eventually reset due to operating savings achieved by EGMA.

Through ERA, AG Campbell serves as the statutory ratepayer advocate for the Commonwealth. She remains committed to advancing a cost-effective and equitable clean energy transition, with a strong emphasis on keeping energy affordable and expanding opportunities for underserved communities to participate in state energy proceedings that impact them. In another recent matter, on October 17, the DPU issued an order (D.P.U. 24-196) adopting ERA’s position that, among other things, National Grid’s request for an additional $32 million in electric vehicle program funds was neither necessary nor justified, thereby saving National Grid Electric ratepayers $32 million.

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