Berkshire Gas to Reduce Customer Bills by Up to 13.1% in Wake of High Usage, Supply Costs
In collaboration with the Massachusetts Department of Public Utilities, Berkshire Gas to reduce rates for Residential Heating customers by 13.1 percent and Residential Non-Heating customers by 10 percent in March, April 2025 billing cycles
PITTSFIELD, Mass. — February 28, 2025 — To combat the effects of high bills driven by high usage and increased supply costs, Berkshire Gas, a subsidiary of Avangrid, Inc., announced it is reducing residential customer gas bills by 13.1 percent for Residential Heating Customers and by 10 percent for Residential Non-Heating Customers, effective for the March and April 2025 billing cycles. The announcement follows the February 20, 2025 letter from the Massachusetts Department of Public Utilities (DPU) instructing all natural gas utilities in the state to reduce residential customer rates by at least five percent for the remainder of the 2025 peak season (i.e., the months of March and April). Under Berkshire Gas’ proposal, the average Residential Heating customer on Rate R-3 using 107 therms per month will see a reduction of $27.33 on their total bill, while the average Residential Non-Heating customer on Rate R-1 using 16 therms per month will see a reduction of $4.07 on their total bill.
“At Berkshire Gas, we are proud to offer our customers the lowest rates of any natural gas distribution company in Massachusetts,” said Charlotte Ancel, interim president of Berkshire Gas. “High bills experienced by our customers are due to factors outside our company’s control, namely the high costs of natural gas supply and an unusually cold winter that has increased usage. Still, we understand our customers’ need for relief, and we are proud to collaborate with our regulators at the DPU to reduce rates for the remainder of this chilly season. We encourage any of our customers in need of assistance to reach out to us: we are always here to help.”
For Berkshire Gas customers, high bills during the peak winter season have been driven by two primary factors: one, the high costs of natural gas supply, a commodity that Berkshire Gas does not control or profit from; and two, high usage for home heating customers during an unusually cold winter season. At other Massachusetts natural gas distribution companies, these factors also coincided with an increase in the Local Distribution Adjustment Factors (LDAFs) filed on November 1, 2024; however, by contrast, Berkshire Gas’ LDAFs decreased by 16 percent compared to the previous year. Thus, distribution costs are not a factor in any bill increases felt by Berkshire Gas customers this season.
Per the DPU’s order to all natural gas distribution companies in the state, Berkshire Gas’ rate reductions in the March and April billing cycles will be deferred to the off-peak season, which runs from May to October, in effect smoothing customers’ bills between peak and off-peak periods. In a preliminary estimate, Berkshire Gas has calculated that the total deferral will be $1.615 million. Berkshire Gas will finalize these calculations with the DPU no later than March 17, 2025
To provide long-term bill management tools to residential customers, Berkshire Gas is accelerating efforts to promote budget billing, which utilize customers’ usage across both peak and off-peak seasons to establish a set amount owed by the customer for the year going forward. This program allows customers to budget for the amount they owe each month to their utility to avoid surprise bills. For customers who have difficulty paying their energy bills, Berkshire Gas is also promoting arrearage management plans and other assistance programs.
Media Contact:
Sarah Wall Fliotsos