Ratepayers Need Real Reforms, Not Another Round of Energy Mandates

The Massachusetts Fiscal Alliance today responded to Governor Maura Healey’s executive order directing state agencies to pursue 10 gigawatts of new energy resources and 5 additional gigawatts of storage by 2035, warning that new targets will do little to lower energy costs if the state continues with policies that are driving Massachusetts electricity prices to among the highest in the nation.

Massachusetts residents and employers have faced rapidly rising electricity costs in recent years as state policymakers pushed aggressive electrification mandates, complex procurement programs, and restrictions on reliable base load energy infrastructure. While the Healey administration is now messaging that they are pursuing an “all-of-the-above” energy strategy, the policies that constrained reliable supply while mandating costly alternatives remain unchanged.

“Setting new energy targets for alternative resources makes for a good press release among the climate lobby, but it won’t lower anyone’s electric bill if the policies driving up costs remain in place. Massachusetts residents are already paying some of the highest electricity rates in the country, and they deserve more than another round of top-down mandates to favor certain climate industries,” said Paul Diego Craney, Executive Director of the Massachusetts Fiscal Alliance.

ISO New England projects that electricity demand will rise significantly in the coming decades, in part due to state policies encouraging electrification of heating and transportation. At the same time, Massachusetts has struggled to bring new reliable generation online while pursuing aggressive climate mandates that increase pressure on the grid.

“State leaders have spent years promoting policies that increase electricity demand while making it harder to build the reliable energy infrastructure needed to meet it. If Beacon Hill is serious about lowering costs and ensuring reliability, it needs to start by repealing the NetZero by 2050 climate mandate. The upcoming 2030 mandate is quickly approaching and Governor Healey is simply trying to fulfil that 2030 mandate instead of lowering bills for ratepayers,” said Craney.

The Massachusetts Fiscal Alliance also questioned the administration’s claim that the plan will save ratepayers $10 billion, noting that past energy initiatives were similarly promoted as cost-saving measures but ultimately led to higher utility bills.

“Massachusetts residents have heard these promises before. For years they’ve been told that costly mandates and complex energy programs would eventually reduce their bills, yet those bills keep climbing. The fact that Massachusetts has the highest energy costs in the nation, or nearly the highest, is a policy choice by our state leaders. The Governor continues down this path of higher costs in order to fulfil climate mandates and pledges. Today’s performance is nothing more than a show for the climate lobby,” said Craney.

The Massachusetts Fiscal Alliance said policymakers should focus on repealing the Net Zero climate mandate, which is the law that mandates costly energy decisions and limits reliable base load energy to the region.