Berkshire Gas and the state attorney general’s office have reached an agreement that reduces the utility company’s proposed rate hike by more than $1.7 million for 40,000 customers and bars the company from imposing any further rate increases before Nov. 1, 2025.
The settlement agreement, approved by the state Department of Public Utilities, resolves a Berkshire Gas request to increase its net distribution revenue by $7.4 million. To be eligible for the full rate increase, the company must hire new safety and reliability employees and make certain investments in its gas distribution system. The company will phase in the reduced rate increase over two years, beginning Jan. 1, to lighten the burden on customers.
“As the ratepayer advocate for the state, my office works to secure safe and reliable service at affordable rates for our residents and businesses,” Attorney General Maura Healey, a Democrat who is running for governor in the Nov. 8 election, said in a statement. “This agreement saves Berkshire Gas customers money on their bills and prevents future rate increases at a time when customers across Massachusetts are struggling with high energy costs.”
Under the settlement, there will be monthly rate increases of $6.99 during peak months and $1.32 during off-peak months, when the cost of providing service is lower.
According to Christopher Farrell, manager of communications and government relations at Berkshire Gas, the company serves approximately 10,200 customers in the Franklin County municipalities of Greenfield, Deerfield, Montague, Whately and Sunderland, and the Hampshire County communities of Hatfield, Hadley and Amherst. The company imposed a moratorium on new hookups and expanded service in Greenfield eight years ago.
Farrell said Berkshire Gas filed its initial rate request on June 24. The AG’s office is authorized to intervene in or institute administrative and judicial proceedings on behalf of consumers related to matters involving a state gas or utility company’s rates, charges, prices or tariffs.
Berkshire Gas has also agreed to contribute $125,000 to fund, or assist in funding, programs or initiatives designed to help its customers in paying or lowering their natural gas bills. According to the company, the AG’s office will administer this fund.
“The rate revision approved by the Massachusetts Department of Public Utilities represents the strength of our commitment to continued investment in the communities that we provide service while increasing safety and reliability for our customers,” Berkshire Gas President Sue Kristjansson said in a statement.
“At this time of higher costs across our entire economy, this rate order represents a negotiated compromise that strikes the right balance for our customers and allows us to make critical investments across our entire distribution system.”
According to Berkshire Gas, the company last sought a revision of its retail rates in a filing that became effective in 2019. That was the first such rate filing by the company in at least 17 years.
Customers struggling to pay their gas bills and in need of immediate help are advised to reach out to their utility company to learn about the financial assistance options available to them. This assistance includes flexible payment programs, which are available regardless of income. The attorney general’s office launched a campaign in June to educate customers across the state about programs that can help them reduce their energy usage and lower their bills.
Asked if Healey’s work on this agreement was an attempt to gain votes ahead of the Nov. 8 election, attorney general’s office spokesperson Chloe Gotsis said the effort was driven by Berkshire Gas’ request to implement its rates on Jan. 1.
She explained Berkshire Gas filed its notice of intent with the Department of Public Utilities on Dec. 14, 2021, and rate cases are generally litigated over a procedural 10-month process set by the department. Berkshire Gas then reached out to the AG’s office in January, Gotsis said, to gauge the office’s interest in negotiating a settlement, instead of litigating the matter through the department.
Had the department not approved the settlement in its entirety by Nov. 1, Gotsis said, the settlement would have been withdrawn.
Reach Domenic Poli at dpoli@recorder.com or 413-930-4120.