Eversource explains winter bill spike to New Bedford council; council requests more data and takes no further action

Eversource officials told the New Bedford City Council—s committee on appointments and briefings on April 15 that the sharp rise in natural-gas and electric bills over the winter reflected three principal factors: higher customer usage during a colder-than-normal winter, market-driven supply costs and increases in state-mandated energy-efficiency and public-benefit programs.

Why it matters: councilors said large, unexpected bills have caused widespread hardship in New Bedford and sought specific explanations of which parts of customers— bills are controllable by the utility and which are set by state policy and market forces.

In a prepared presentation and a lengthy question-and-answer session, Mike Vitavelli, Eversource director of community relations, said Eversource is primarily a distribution company and does not generate power: "We are a delivery company. We do not generate any electric or gas." He described the bill as composed of a supply portion, which the company passes through at market cost, and a delivery portion that funds infrastructure and state programs.

Ashley Botello, Eversource—s revenue-and-rates director, added that the supply portion is market-driven and indexed to NYMEX prices, explaining why the company must adjust supply charges when market prices move: "The supply portion of the bill is a pass-through cost. We don't have control over that amount at Eversource." She said the Department of Public Utilities (DPU) enforces the timing and mechanics of several of those adjustments.

During the hearing Eversource volunteered several concrete program and timing details: the Department of Public Utilities approved a 10% delivery-rate reduction for March and April to give immediate relief and spread recovery into the off-peak months; the Department of Energy Resources issued a one-time $50 customer credit tied to state relief programs; and the statewide energy-efficiency (Mass Save) three-year budget request was reduced from roughly $5 billion to $4.5 billion during regulatory review.

Eversource also supplied a breakdown the company said applied to the distribution adjustment: roughly 60—65% of that charge is associated with energy-efficiency programs, about 20—25% with the gas system enhancement (safety) program, and about 7% with low-income assistance and residential-relief programs. Vitavelli said customers would see new off-peak rates starting May 1, when seasonal supply factors change.

Councilors repeatedly pressed Eversource on transparency and timing. Councilor Brian Gomes said residents were told earlier that New Bedford—s pipes and system were safe and questioned why the rate impacts were not clear to consumers when work was amplified. "You came in here and told us everything was okay in the city streets of New Bedford," Gomes said. "Now these costs are showing up on people's bills."

Councilor Joseph Lopes asked whether customers could opt out of the DPU-ordered 10% March—April reduction that the company will recoup over the summer; Eversource replied customers may not opt out because the rate change has already been implemented.

Councilors obtained two further commitments from Eversource during the session: the company will provide the committee a detailed month-by-month breakdown showing how the March—April adjustments will be recovered in the May—October off-peak period, and Eversource will supply a detailed rate-component comparison that the committee can use to compare New Bedford—s charges with those in other Massachusetts communities.

After more than an hour of questions, Councilor Gomes moved for "no further action" on the agenda item; the motion passed after committee members said the requested documentation would be supplied. Committee members said they would revisit the issue if Eversource did not provide the promised data.

The exchange highlighted several practical points the company and councilors said they would pursue: clearer bill line items; public outreach that includes the option for audience Q&A; and more visible, itemized disclosures for the energy-efficiency and safety programs that are embedded in delivery charges.

What—s next: Eversource agreed to supply a rate breakdown and comparative materials to the clerk and committee. The committee recorded the motion of no further action after securing those deliverables; it may reconvene the company if the materials are not delivered or if additional follow-up is necessary.