Utility Rates and Electrification

On Wednesday, February 28, from 11:00 to 12:00, Jeremy Koo with the Metropolitan Area Planning Council (MAPC) hosted a presentation and discussion on utility rates and electrification. Heat pumps have historically faced cost-effectiveness challenges in Massachusetts when replacing gas heating, posing particular challenges for residents already facing high energy burdens, even when electrification installation costs were fully covered through incentive programs. Attendees learned more about the expected in-field performance of heat pumps, the impact of the fluctuating utility rates of the past few years, and the role of discounted utility and electricity supply rates in closing the cost competitiveness gap for low-income residents. We also discussed the pros and cons of potential policy and program approaches to accelerating electrification and improving customer economics.