Residents in one US state will soon see power bills drop 25% — but there’s a catch
The reduction in utility bills will be temporary and residents will end up paying some of that back
Jan. 24 2026, Published 5:16 a.m. ET
Massachusetts Residents are about get a 25% reduction in their electricity bill and a 10% reduction in their gas bills in February and March, according to Governor Maura Healey. In a preview of her State of the Commonwealth Address on Thursday, she explained that part of the reductions will be funded by the state using the existing sources to provide winter relief to the residents. However, there is a major catch, as residents will eventually end up paying some of the money back, CBS News reported.
The move comes two days after Healey announced she was running for re-election, and her campaign has shifted focus toward affordability. Out of the 25% electricity rate decrease, 15% will be covered by the state, and the remaining 10% will be covered by the energy companies for now. In her address, the governor said the rate reductions will cost the state $180 million, and they will provide relief to residents from the recent hikes. According to data from the National Energy Assistance Directors Association (NEADA), home heating costs are projected to rise by around 8.7% over the entire winter season, with a relative average bill coming out to be around $941. Furthermore, last month, the National Grid proposed almost a 10% rate hike for its gas customers in Massachusetts, starting in 2027, which Healey opposed.
But customers will likely pay back that portion during months when utility bills are not as high. A National Grid spokesperson told WBZ-TV that the department was working with the governor and "implementing a targeted winter relief effort that will lower energy bills for February and March." The publication reported that National Grid gas customers can expect to save about $27 in each of those months. And, the utility's electric customers should save $60 a month for February and March.
However, the reductions were deferred and meant to be temporary, as CBS News reported that customers will end up paying some of that money back later in the year. The National Grid plans to collect all of the deferred gas bill amounts from customers between May and October, and the deferred electric amounts will be collected between April and December.
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