DPU Chair Van Nostrand outlines reforms for Massachusetts gas system enhancement program

The Massachusetts Senate Committee on Climate Change and Global Warming convened on May 14, 2025, to discuss significant updates regarding the Gas System Enhancement Program (GSEP). Chair of the Department of Public Utilities (DPU), Jamie Van Nostrand, highlighted a pivotal shift in the program's focus, emphasizing that GSEP is evolving beyond merely replacing gas pipes to include non-gas pipeline alternatives (NPAs).

Van Nostrand's testimony underscored the need for the GSEP to adapt in light of recent climate legislation. He noted that the latest GSEP plans failed to incorporate NPAs, despite local communities advocating for their inclusion. "This has to change in the future," he stated, indicating a clear direction for the program's evolution.

The committee's discussions were timely, coinciding with Governor's recent remarks on energy affordability. Senator Barrett expressed optimism about potential strategies to lower gas bills for residents, reinforcing the urgency of the meeting's agenda.

A key decision made during the meeting was the reduction of the revenue cap for gas utilities from 3% to 2.5%, with plans to decrease it further to 2% in 2026 and 1.5% in 2027. This move aims to encourage utilities to explore more cost-effective solutions for addressing leak-prone pipes, rather than relying solely on expensive pipe replacements.

Van Nostrand pointed out that while GSEP spending has surged, the actual remediation of leak-prone pipes has not kept pace. He emphasized the need for utilities to adopt advanced leak technologies and to justify their project priorities more rigorously. A new risk assessment working group will be established to enhance transparency and ensure that public safety remains a priority as spending on GSEP decreases.

The committee's actions signal a significant shift in Massachusetts' approach to gas infrastructure, aligning with broader climate goals and addressing the financial burdens on consumers. The anticipated outcomes from these discussions could reshape the future of energy management in the state, making it more sustainable and economically viable for residents.