Massachusetts Pipeline Expansion Could Save Millions on Energy Bills

Massachusetts residents are facing some of the highest energy rates in the country, with residential electricity prices increasing by 41% and natural gas prices for home heating rising by 62% since 2018. This has added an extra $623 per year to the average family's energy bills.

A new study by the Fiscal Alliance Foundation suggests that the proposed Project Beacon natural gas pipeline expansion could significantly reduce these costs. The project, proposed by Enbridge, would add about 300 million cubic feet of natural gas capacity per day, enough to meet the winter needs of 840,000 homes. The upgrade would involve increasing the size of the existing pipeline and adding more compression along the line.

The study estimates that Project Beacon could save Massachusetts families and businesses $367 million in heating and electric bills during an average winter. Residential customers would save $184 million per winter, with an average family saving $95. Small businesses would save $163 million per winter, with the average commercial account saving $622. The net savings for households would be $76 per winter, providing $5 in savings for every dollar spent on the pipeline.

The savings would be higher during colder winters and lower during mild winters. The project is not a complete solution to high energy costs but could offset roughly 60% of the increase attributable to fuel costs. Other cost drivers, such as the Mass Save program, would need to be reformed for further relief. The Healey administration has also supported a smaller expansion project, highlighting the need for additional natural gas capacity.