Governor Maura Healey and Attorney General Andrea Joy Campbell announced on March 27 that the Federal Energy Regulatory Commission (FERC) has ordered a reduction in the allowed return on equity for New England transmission owners. The decision follows more than ten years of advocacy by the Massachusetts Attorney General’s Office and is expected to result in an estimated $900 million refund to New England ratepayers, as well as over $100 million in annual savings going forward.
The order addresses concerns about high utility costs for residents and businesses across the region. Transmission costs are one of the fastest growing components of electricity bills, making this decision significant for many households. If upheld, FERC’s ruling will not only provide immediate refunds but also lower ongoing expenses by reducing permitted profits for transmission owners.
“People’s energy costs are far too high, and we fought for a long time in this case to lower people’s bills,” said Governor Healey. “This decision makes clear that utilities should not be allowed to make exorbitant profits on the backs of ratepayers, and that those profits should go back in people’s pockets where it belongs. I am going to continue to oppose big rate increases to lower people’s bills.”
Attorney General Campbell said her office will continue working with federal regulators and stakeholders so refunds are delivered quickly: “As Massachusetts’ ratepayer advocate, my role is to ensure that utility rates are just and reasonable and that consumers are not paying more than they should. This decision reflects years of work to challenge excessive transmission profits and deliver meaningful relief. My office will continue to hold utility companies accountable and push for greater oversight to protect residents from unjustified and unreasonable costs.”
Energy Secretary Rebecca Tepper described FERC’s order as a landmark decision resulting from several years of advocacy: “Transmission costs are one of the fastest growing components of our electricity bills,” she said. “We have been pushing for FERC to cut transmission profits and institute greater oversight for several years. This is a landmark decision by FERC that will result in real savings for families and businesses now and in the future. We’re going to keep fighting to lower people’s energy bills.”
The proceeding began in 2011 when a coalition led by the Massachusetts Attorney General filed a complaint challenging New England transmission owners’ returns on equity as excessive. Over time, agreements were reached with regional utilities aimed at increasing transparency around asset condition projects—efforts supported by ISO New England’s commitment last year toward independent review functions.
Campbell’s office reports saving Massachusetts consumers approximately $2.11 billion during fiscal year 2025 through participation in over 175 regulatory proceedings involving utility rates.
Looking ahead, officials say they remain committed both locally through state legislation—such as Governor Healey’s Energy Affordability Act—and regionally via continued collaboration with consumer advocates, regulators, ISO New England reviewers, federal agencies, utilities companies, ensuring further scrutiny over large-scale projects impacting energy affordability.
