April 1, 2022

Massachusetts AG Healey Negotiates Relief for Utility Customers

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

Massachusetts AG Maura Healey announced on March 29^th that her office had reached a settlement agreement with several Massachusetts utility companies doing business under the name National Grid, as well as their parent company, National Grid USA (together, “National Grid”). The settlement relates to National Grid’s proposed sale of Rhode Island subsidiary Narragansett Electric Company (“Narragansett”).
In July 2021, the Massachusetts Department of Public Utilities issued an order waiving a full review of National Grid’s sale of Narragansett. The AG’s Office, acting as ratepayer advocate for Massachusetts consumers, appealed the order and, in February 2022, secured a stay of the sale. The settlement agreement permits the sale to proceed, and goes into effect upon closing.
Under the terms of the settlement, National Grid agreed to “eliminate, mitigate… offset… or absorb” $29 million in costs relating to the sale of Narragansett, as opposed to passing those costs on to Massachusetts consumers. In addition, National Grid agreed to provide customers with a $7.9 million credit to mitigate projected cost increases and $4 million in debt forgiveness. It will also provide $1 million for the AG’s Residential Energy Assistance Grant Program.

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